Explore frequently asked questions by new customers
How does Betterment make money?
Betterment makes money in four simple ways: Our flat management fee for investing and advice—$4 per month or 0.25% for most customers (depending on your balance and recurring deposit settings), 0.40% for our Premium advice plan. Our over-the-phone advice packages, which cost between $299 and $399 per package. Payments from Cash Reserve program banks, which Betterment expects will result in annualized revenue of more than 0% but less than 0.50% of the average, aggregate balance of the daily ...Read More
How does Betterment compare to other financial companies?
We like to point to three major ways we're focused on the customer: We're a fiduciary—we are required to act in your best interest and we're required to disclose any potential conflict of interest. For instance, Betterment does not have or recommend any Betterment-created funds for its client portfolios Our platform combines powerful technology with personalized advice developed by our passionate team of experts. When you have questions, our Customer Support team is ready to help you with ...Read More
Who are the experts behind Betterment?
Our team of investing experts make decisions about our portfolio strategies and fund selection with the help of an external committee of economists, PhDs, and industry experts. More than just a portfolio management team, our experts work to develop improvements to our Tax Smart technology and other advanced strategies.Read More
Is Betterment a regulated financial institution?
Betterment LLC is an SEC-registered Investment Advisor, and brokerage services provided to clients of Betterment LLC is done by Betterment Securities, an SEC-registered broker-dealer and member of FINRA /SIPC.Read More
What is your Mission Statement?
We are here to empower people to do what's best for their money so they can live better. We’re building smarter, more efficient money management for everyone. By pushing the bounds of what technology can do, by bringing together some of the best software and analytic thinking of diverse, cutting edge industries, we’re able to ensure that more people get the advice that they deserve. We have the ability to help free our customers to pursue what is most meaningful to them, to spend their time ...Read More
How is Betterment different?
Traditionally, people have manually managed their money and investments, which can be a very time consuming and painful process, or they've paid very costly fees to have access to financial advisors and advanced investment strategies. You may be a first-time investor just starting out, a seasoned investor wondering if you could be doing better, or a retiree thinking about ways to make your nest egg last. For those seeking an alternative to expensive advisor fees or the labor-intensive process ...Read More
How do you keep my money safe?
Betterment Securities is a member of SIPC, which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). Explanatory brochure available upon request or at www.sipc.org. What you should remember is that the SIPC does not protect against market changes in your account. The risks inherent in investing are tradeoffs you make to pursue investment returns. We design our portfolio to aim for the highest projected returns given your risk level. With our ...Read More
What happens to my money if Betterment goes public, is acquired, or closes?
Betterment Securities is a member of the Securities Investor Protection Corporation (SIPC). At a high level, you can think of SIPC as providing protection for funds held in a brokerage account in the event that the brokerage fails. The Securities Investor Protection Corporation (SIPC) provides insurance that protects your investments, including those held by our broker, Betterment Securities. It covers up to $500,000 of missing assets, including a maximum of $250,000 for cash claims. The limit ...Read More
What are Betterment’s fees?
Betterment offers several fee plans for our investing services. Below we’ve listed a pricing breakdown according to account type and additional fee information. Stocks and Bonds Investing Accounts Betterment’s investment advice is available for 0.25% (25 bps) per year or $4 per month. While it will impact our fees, Betterment does not require you to maintain a minimum balance for your account. We call this our Digital plan because you receive our advice online. The Digital pricing plan for our ...Read More
Who is eligible to use Betterment?
Betterment currently only operates in the United States, and for regulatory reasons cannot accept international customers residing outside the United States. This includes U.S. citizens residing and/or working abroad.* Login access to Betterment’s application and/or website may be blocked in certain countries. All customers must be at least 18 years of age in order to consent to all our agreements. Customers must have a permanent U.S. address, a U.S. Social Security Number or an ITIN, and a ...Read More
How is a Betterment investment account different from a traditional online brokerage account?
Betterment offers unique features, including: A straightforward pricing model without transaction charges or hidden fees. We focus on the only two investments which tend to matter to most investors: a great stock basket and a bond portfolio. An incredibly easy user experience which makes it easy to understand your money and control your exposure to risk. Automatic, seamless diversification (which often means higher returns with lower risk). Automatic rebalancing of your portfolio. Automatic ...Read More
What is Betterment and how does it work?
Betterment is a smart money manager and the largest independent online financial advisor that serves one purpose: to help you make the most of your money. Betterment helps you manage your money through cash management, guided investing, and retirement planning. We are a fiduciary, which means we act in your best interest. We'll ask a bit about you when you sign up. We'll also gather information when you connect your outside accounts. Then, we'll help you set financial goals and set you up with ...Read More
Does Betterment do a credit check?
No. Since Betterment does not lend out money, the only check we do is an identification (ID) verification as required by law. We do not pull your credit score or act in any way which would impact your credit rating.Read More
How It Works
Can I invest in an individual stock or fund (ie., S&P 500 index or Apple)?
No, you cannot invest in an individual stock or fund at Betterment. We aim to invest in a globally-diversified portfolio (which includes over 5,000 companies) made up of low-cost and liquid ETFs. The portfolio was chosen to help provide optimal returns at every level of risk, and is rebalanced as the market fluctuates and as you grow closer to your goal’s end date, if you have a time horizon set. We believe in passive investing. The majority of the evidence shows that active management, whether ...Read More
Managing my account
Where can I find account statements?
Betterment automatically uploads statements in PDF format on a monthly basis, typically within the first week of the month. You can download monthly account statements by logging into your account from a web browser and selecting Documents from the menu. Custom Account Statements If you require a custom account summary for a specific timeframe, select +Generate account snapshot in the top corner. Please note that statements for 401(k) and crypto accounts cannot be generated through an account ...Read More
What investments are in the Betterment portfolio?
Here at Betterment, we have already done the research on how to help make the most of your money, and our experts have put together a portfolio so that you don’t have to. You won’t be picking and choosing your own investments. You also won’t be able to buy stocks in specific companies or industries. Our Core portfolio is comprised of a combination of stock ETFs and bond ETFs, which are globally diversified and personalized for each goal and time horizon. An exchange-traded fund (ETF) is a ...Read More
What accounts can I open with Betterment?
To create an additional account, click “Add New” from the menu after logging in from a web browser. Or, on the mobile app, log in and click on "Add goal/account." There you’ll find a list of available account types to choose from. There are no fees or minimums required for most of our additional accounts. Betterment supports the following account types: Roth IRA Traditional IRA SEP IRA (single participant only) Inherited IRA To set up an inherited IRA, please contact us. Individual taxable ...Read More
Who is available to support me when I need one-on-one advice?
Our team is here to support you, whether you're facing a technical problem, making a complicated financial move, or looking for personalized guidance from a professional. When you have a question that warrants personal advice, we have a team of CERTIFIED FINANCIAL PLANNERS™ to support you with one-on-one advice, either in a one-time package or with continuous support in our Premium plan. We also have a Concierge Team who can help advise you if you're working on transitioning a substantial ...Read More
What mobile platforms does Betterment support?
Betterment supports apps on iOS and Android. You can download them below: iOS AndroidRead More