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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.

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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

Betterment

Wealthfront [1]

Minimum to start

Betterment

$0

Wealthfront [1]

$500

Account fees

Betterment

0.25%

Wealthfront [1]

0.25%

Automatic deposits

Betterment
<title>This is supported</title>
Wealthfront [1]
<title>This is supported</title>

Tax-loss harvesting

Betterment
<title>This is supported</title>
Wealthfront [1]
<title>This is supported</title>

Asset location

Betterment
<title>This is supported</title>
Wealthfront [1]
<title>This is supported</title>

Design-your-own portfolios

Betterment
<title>This is supported</title>
Wealthfront [1]

Recommended funds are independent
of robo-advisor

Betterment
<title>This is supported</title>
Wealthfront [1]
<title>This is supported</title>

Withdrawal times for investment accounts

Betterment

4-5 business days

Wealthfront [1]

3-4 business days

Access to human advisors [2]

Betterment

Designed to manage your finances
with the help of financial experts.

Wealthfront [1]

Designed to manage your finances
with a software-only approach.

Fund recommendation approach

Betterment

Global diversification, portfolio and
tax optimization for all users.

Wealthfront [1]

Risk Parity Fund is
recommended to users with larger accounts,
introducing a conflict of interest.

High-interest saving

Betterment

Wealthfront [1]

Account types

Betterment

Cash Reserve: a high-interest cash account.

Wealthfront [1]

Cash Account: a high-interest cash account
with opt-in checking features.

Interest rate

Betterment

*

Wealthfront [1]

0.35%

Minimum balance to start

Betterment

$10

Wealthfront [1]

$1

Automatic savings tools:
Automatically moves money for
you between accounts.

Betterment
<title>This is supported</title>
Wealthfront [1]
<title>This is supported</title>

Joint accounts

Betterment
<title>This is supported</title>
Wealthfront [1]
<title>This is supported</title>

Cash goals:
Create separate stashes of money
for individual goals, like a
weekend getaway or kitchen reno.

Betterment
<title>This is supported</title>
Wealthfront [1]

Transfer limits

Betterment

Unlimited

Wealthfront [1]

Unlimited

FDIC insurance

Betterment

Cash Reserve is eigible for up to $1,000,000 at our program banks.†
Joint Cash Reserve is eligible for up to $2,000,000 at our program banks.†

Wealthfront [1]

Cash Account is covered up to $1,000,000.
Joint Cash Account is covered up to $2,000,000.

Spending

Betterment

Wealthfront [1]

Account types

Betterment

Checking - a checking account and Visa debit card provided by nbkc bank, Member FDIC.

Wealthfront [1]

Individual Cash Account: a high-interest cash account with opt-in checking features.

Interest rate

Betterment

0%

Wealthfront [1]

0.35%

Minimum deposits

Betterment

$0

Wealthfront [1]

$1

Debit card monthly fees

Betterment

No

Wealthfront [1]

No

Automatic savings tools

Betterment
<title>This is supported</title>
Wealthfront [1]
<title>This is supported</title>

ATM fees are reimbursed

Betterment

Yes

Wealthfront [1]

No

Mobile check deposit

Betterment
<title>This is supported</title>
Wealthfront [1]
<title>This is supported</title>

Tap-to-pay

Betterment
<title>This is supported</title>
Wealthfront [1]

Cell phone protection benefit

Betterment

Yes: Coverage is provided by our insurance partner Sure.

Wealthfront [1]

No

FDIC insurance

Betterment

Accounts eligible for up to $250,000 of FDIC insurance through nbkc bank, Member FDIC

Wealthfront [1]

Covered up to $1,000,000 once
deposited partner banks.

Transfer limits

Betterment

Unlimited

Wealthfront [1]

Unlimited

Joint accounts

Betterment

Coming soon

Wealthfront [1]

Physical checkbooks

Betterment

Coming soon

Wealthfront [1]

Minimum to start

• Betterment: $0
• Wealthfront: $500
• Vanguard Digital Advisor: $3,000

Annual fees for investment accounts

• Betterment: 0.25%
• Wealthfront: 0.25%
• Vanguard Digital Advisor: 0.20%

Goal based account setup

• Betterment: Yes
• Wealthfront: Yes
• Vanguard Digital Advisor: Yes


Cash

Interest on your cash balance

• Betterment: 0.40%*
• Wealthfront: 0.35%
• Vanguard Digital Advisor: No cash account


Investing

Automatic tax-loss harvesting

• Betterment: Yes
• Wealthfront: Yes
• Vanguard Digital Advisor: No

Design-your-own portfolios

• Betterment: Yes
• Wealthfront: No
• Vanguard Digital Advisor: No

Independence from banks and
fund providers

• Betterment: Yes
• Wealthfront: No
• Vanguard Digital Advisor: No


Transfers

Withdrawal times for investment accounts

• Betterment: 4-5 business days
• Wealthfront: 3-4 business days
• Vanguard Digital Advisor: 2 business days

Automatic deposits

• Betterment: Yes
• Wealthfront: Yes
• Vanguard Digital Advisor: Yes

[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

Open an account

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

Open an account

As seen in...

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* The annual percentage yield (“APY”) on the deposit balances in Betterment Cash Reserve (“Cash Reserve”) is and represents the weighted average of the APY on deposit balances at the banks participating in Cash Reserve (the “Program Banks”) and is current as of . This APY is variable and subject to change daily. See Current APY. Deposit balances are not allocated equally among the participating Program Banks. A minimum deposit of $10 is required, but there is no minimum balance required to be maintained. The APY available to a customer may be lower if that customer designates a bank or banks as ineligible to receive deposits. APY applies only to Cash Reserve and does not apply to checking accounts held through Betterment Checking. Cash Reserve and Betterment Checking are separate offerings and are not linked accounts.

See Betterment’s Form ADV Part II and Terms and Conditions for additional information, including details of the deposit allocation methodology.

†Betterment Cash Reserve ("Cash Reserve") is offered by Betterment LLC. Clients of Betterment LLC may participate in Cash Reserve through their brokerage account held at Betterment Securities. Neither Betterment LLC nor any of its affiliates is a bank. Through Cash Reserve, clients' funds are deposited into one or more banks ("Program Banks") where the funds earn a variable interest rate and are eligible for FDIC insurance. Cash Reserve provides Betterment clients with the opportunity to earn interest on cash intended to purchase securities through Betterment LLC and Betterment Securities. Cash Reserve should not be viewed as a long-term investment option.

Funds held in your brokerage accounts are not FDIC‐insured but are protected by SIPC. Funds in transit to or from Program Banks are generally not FDIC‐insured but are protected by SIPC, except when those funds are held in a sweep account following a deposit or prior to a withdrawal, at which time funds are eligible for FDIC insurance but are not protected by SIPC. See Betterment Client Agreements for further details. Funds deposited into Cash Reserve are eligible for up to $1,000,000.00 (or $2,000,000.00 for joint accounts) of FDIC insurance once the funds reach one or more Program Banks (up to $250,000 for each insurable capacity—e.g., individual or joint—at up to four Program Banks). Even if there are more than four Program Banks, clients will not necessarily have deposits allocated in a manner that will provide FDIC insurance above $1,000,000.00 (or $2,000,000.00 for joint accounts). The FDIC calculates the insurance limits based on all accounts held in the same insurable capacity at a bank, not just cash in Cash Reserve. If clients elect to exclude one or more Program Banks from receiving deposits the amount of FDIC insurance available through Cash Reserve may be lower. Clients are responsible for monitoring their total assets at each Program Bank, including existing deposits held at Program Banks outside of Cash Reserve, to ensure FDIC insurance limits are not exceeded, which could result in some funds being uninsured. For more information on FDIC insurance please visit www.FDIC.gov. Deposits held in Program Banks are not protected by SIPC. For more information see the full terms and conditions and Betterment LLC's Form ADV Part II.

‡ Checking accounts and the Betterment Visa Debit Card provided by and issued by nbkc bank, Overland Park, Kansas, Member FDIC. Funds deposited into Checking will be eligible for up to $250,000 of FDIC insurance. Checking made available through Betterment Financial LLC. Neither Betterment Financial LLC, nor any of their affiliates, is a bank. Betterment Financial LLC reimburses ATM fees and the Visa® 1% foreign transaction fee worldwide, everywhere Visa is accepted. Checking accounts do not earn APY (annual percentage yield). Cash Reserve and Checking are separate offerings and are not linked accounts.

Cell Phone Insurance

Content and associated insurance products are provided by Sure HIIS Insurance Services, LLC ("Sure"), a licensed seller of insurance. The above does not in any way constitute an endorsement or referral by Betterment of the products or services offered by Chubb or Sure. Claims must be filed within sixty (60) days of the date of damage or theft to be eligible. Exclusions may apply. Insurance is issued and managed by the Chubb Group of Insurance Companies, 202B Hall's Mill Road, Whitehouse Station, New Jersey, 08889. Terms subject to change.