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!
Betterment is the largest independent robo-advisor, helping people to better manage, protect, and grow their wealth through smarter technology. With more than 175,000
customers and over $5 billion
in assets under management, the service offers a globally diversified portfolio of ETFs, designed to help provide you with the best possible expected returns for retirement planning, building wealth, and other savings goals. Betterment also helps customers get on track for a comfortable retirement with RetireGuide™, a retirement planning tool that lets people know how much they should save and if they are investing correctly.
Betterment is a CNBC Disruptor 50 and Webby award winner, and it has been featured in the New York Times, Forbes, and the Wall Street Journal. Betterment helps people to achieve a smarter financial future with minimal effort and for a fraction of the cost of traditional financial services. Learn more here.