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Choosing a Robo-Advisor: Investing Made Personal

Compare Betterment, Wealthfront, and Vanguard Digital Advisor and choose the best robo-advisor for you. 500,000+ users manage their money with the company that started the category—Betterment.

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What is a Robo-advisor?

Robo-advisors manage your investments with portfolio guidance and time-saving automation.

  • An online financial advisor.

    Robo-advisors use technology to help manage your money, deliver low-cost financial advice, and provide automated financial planning.

  • A portfolio manager.

    Robo-advisors manage investment portfolios on your behalf, but there are some key differences in how effectively each tool sets up your investments for your goals.

  • An alternative to DIY-investing.

    If you’re more interested in automating time-intensive financial tasks than in gaming the market, a robo-advisor could be for you.

Compare Betterment, Wealthfront, and Vanguard Digital Advisor

Choosing a robo-advisor? Consider the full picture of a robo-advisor’s approach to advice, management fees, and investment options.

Betterment Wealthfront Vanguard Digital Advisor

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
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Wealthfront
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Vanguard Digital Advisor
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Cash

Betterment

Wealthfront

Vanguard Digital Advisor

Interest on your cash balance

Betterment

0.40%*

Wealthfront

0.35%

Vanguard Digital Advisor

No cash account

Investing

Betterment

Wealthfront

Vanguard Digital Advisor

Automatic tax-loss harvesting

Betterment
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Wealthfront
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Vanguard Digital Advisor
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Design-your-own portfolios

Betterment
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Wealthfront
Vanguard Digital Advisor
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Independence from banks and fund providers

Betterment
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Wealthfront
Vanguard Digital Advisor
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Transfers

Betterment

Wealthfront

Vanguard Digital Advisor

Withdrawal times for investment accounts

Betterment

1-2 business days

Wealthfront

3-4 business days

Vanguard Digital Advisor

2 business days

Automatic deposits

Betterment
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Wealthfront
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Vanguard Digital Advisor
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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: 1-2 business days
• Wealthfront: 3-4 business days
• Vanguard Digital Advisor: 2 business days

Automatic deposits

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

Stated information regarding Betterment, Wealthfront, and Vanguard Digital Advisor can be found on each firm’s respective website and is accurate as of 09/2/2020. The information provided here does not reflect any promotional rates that may be available and is subject to change. Different interest rates may apply to different types of accounts, different zip codes, and different balance amounts. Accordingly, the actual rate for any account that you hold could be materially different than the rate stated here. You should contact each respective firm for current and complete information about available account types, including applicable interest rates, and fee structure. 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.

Help reach your financial goals with Betterment

Betterment is elevating the marketplace of financial advice through:

  • $0 account minimums across our investing products

  • Personalized retirement plans

  • One-on-one financial advice

Open an account

Reach Your Financial Goals With Betterment

Betterment is elevating the marketplace of financial advice through:

  • $0 account minimums

  • Personalized retirement plans

  • One-on-one financial advice

Open an account

Join 500,000+ people on their journey of pursuing happiness.

Since Betterment’s launch over 10 years ago, we’ve grown our product offerings and customer base.

  • 500,000+ customers


  • Rated an innovative fintech company
    in 2020 by Forbes


  • 21+ billion assets under management


As seen in...

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1 Betterment LLC was selected out of hundreds to be a part of the 2020 Forbes Fintech 50 based upon self-submission of a form providing the most basic firm details (i.e, category/industry, website, etc.) and research conducted by Forbes reporters and editors. Forbes readership were also allowed to submit company nominations. No payment was provided in exchange for such consideration. For more information on this acknowledgement—including eligibility and evaluation criteria - visit https://www.forbes.com/fintech/2020/#71c17d354acd and https://www.forbes.com/sites/jeffkauflin/2019/09/12/what-are-your-favorite-fintech-companies-forbes-fintech-50-call-for-nominations-2020/#471267d42035. Among other factors, this ranking was based on the following criteria: 1) Strong growth over the past year, and at a faster pace than competitors; 2) Have a publicly live, working product; 3) Have significant U.S. operations; 4) No public companies or their subsidiaries. Such award or recognition does not evaluate nor is indicative of, amongst other things: client experience and investment performance of client portfolios. No guarantee by Betterment LLC is being made in its receipt of this recognition.

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.

See details and disclosure for Betterment's articles and FAQs.