Betterment and Wealthfront: See the difference in our approach
Betterment and Wealthfront began with similar investing models, but have since made vast changes to their product offerings. See how Betterment’s approach to changing personal finance can help you meet your goals.
Which is right for your needs?
Both Betterment and Wealthfront help you save and invest, but their approaches differ. When choosing a money manager, consider the advice, investment strategy, and savings approach that’s right for you.
| Betterment | Wealthfront [1] | |
|---|---|---|
| Investing | ||
| Minimum to start | $0 |
$500 |
| Account fees | 0.25% |
0.25% |
| Automatic deposits | ||
| Tax-loss harvesting | ||
| Asset location | ||
| Design-your-own portfolios | ||
| Recommended funds are independent of robo-advisor | ||
| Withdrawal times for investment accounts | 4-5 business days |
3-4 business days |
| Access to human advisors [2] | Designed to manage your finances with the help of financial experts. |
Designed to manage your finances with a software-only approach. |
| Fund recommendation approach | Global diversification, portfolio and tax optimization for all users. |
Risk Parity Fund is recommended to users with larger accounts, introducing a conflict of interest. |
| High-interest saving | ||
| Account types | Cash Reserve: a high-interest cash account. |
Cash Account: a high-interest cash account |
| Interest rate | 0.10%* |
0.35% |
| Minimum balance to start | $10 |
$1 |
| Automatic savings tools: Automatically moves money for you between accounts. | ||
| Joint accounts | ||
| Cash goals: Create separate stashes of money for individual goals, like a weekend getaway or kitchen reno. | ||
| Transfer limits | Unlimited |
Unlimited |
| FDIC insurance | Cash Reserve is eligible for up to $1M at our program banks.† Joint Cash Reserve is eligible for up to $2M at our program banks.† |
Cash Account is covered up to $1M. Joint Cash Account is covered up to $2M. |
| Spending | ||
| Account types | Checking: A checking account and Visa debit card provided by nbkc bank, Member FDIC. |
Individual Cash Account: A high-interest cash account with opt-in checking features. |
| Interest rate | 0% |
0.35% |
| Minimum deposits | $0 |
$1 |
| Debit card monthly fees | No |
No |
| Automatic savings tools | ||
| ATM fees are reimbursed | Yes‡ |
No |
| Mobile check deposit | ||
| Tap-to-pay | ||
| Cell phone protection benefit | Yes: Coverage is provided by our insurance partner Sure. |
No |
| FDIC insurance | Accounts eligible for up to $250K of FDIC insurance through nbkc bank, Member FDIC. |
Covered up to $1M once deposited partner banks. |
| Transfer limits | Unlimited |
Unlimited |
| Joint accounts | Coming soon |
|
| Physical checkbooks | Coming soon |
|
[1] Stated information regarding a Wealthfront Investing Account, Cash Account, or Individual Cash Account is based on Wealthfront’s website as of 10/05/2020 and does not reflect any promotional rates that may be available. Different interest rates may apply to different types of accounts at Wealthfront, different zip codes, and different balance amounts. Accordingly, the actual rate or features for any account that you hold at Wealthfront could be materially different than the rate or features stated here. You should contact Wealthfront for current and complete information about available account types, including applicable interest rates or features. Betterment is not responsible for the accuracy, timeliness, or completeness of information on third-party websites. This information is intended to be educational only and is not reflective of actual client experience or portfolio performance. Stated information regarding FDIC protection and transfer limits apply to savings accounts generally and are not specific to particular accounts offered by particular institutions.
[2] Access to Betterment's team of CFP® professionals available to Premium customers or through advice packages available for additional fee.
Betterment can help you save, spend, and invest better.
Betterment pushes the boundaries of financial advice by helping you earn more and spend wisely. We maximize your money in some key ways:
- Combining human advice with smart technology.
- Eliminating all fees on short-term cash accounts.
- Spend quickly and safely with a tap-to-pay enabled debit card.
- $0 account minimums to help you invest today.
