The email introduced a new product – a “Breakable” Certificate of Deposit. With this product, you can put your money in a Certificate of Deposit and receive one penalty free withdrawal for the term of the deposit.
I must admit, prior to learning about Betterment, I was a champion Certificate-of-Deposit-saver. Back then (i.e. 3 months ago!), CDs were an easy way to “invest” my money. Now, I can’t wait for these CDs to be up so that I can put that money in my Betterment account!
Still intrigued by the email, I clicked through to learn more. The fine print:
- Minimum Balance to Open: $10,000
- Annual Percentage Yield: 0.25%
So, if I put $10,000 into a Breakable Certificate of Deposit, I would see a return of $25 for 1 year. That doesn’t really sound like my money is “working” very hard for me.
Seems like this “Breakable” Certificate of Deposit is … Broken!
Investing’s Pain Gap: What You Put Up With To Earn Returns
Markets are frustrating—especially when you look at a year’s worth of returns. Year to year, you can easily experience what we call the pain gap. The key is to not let the pain gap create a behavior gap between your account and market performance.
Is Betterment Worth It? Estimating the Added Value of a Robo-Advisor
Based on our estimation, using Betterment’s retirement recommendations could earn you 38.8% more after-tax money in retirement compared to investing on your own.
Why Stock Market News Might Be Misleading You
Learn to separate the meaningful information from the noise. Knowing the right way to interpret market news can help us to make smarter decisions about how to manage our investments.
Explore your first goal
This is a great place to start—an emergency fund for life's unplanned hiccups. A safety net is a conservative portfolio.
Whether it's a long way off or just around the corner, we'll help you save for the retirement you deserve.
If you want to invest and build wealth over time, then this is the goal for you. This is an excellent goal type for unknown future needs or money you plan to pass to future generations.