Reviewed by Sam Xu
Melbourne AI Expert
Overview
Betterment offers automated investing with diversified, expert-built portfolios, high-yield cash accounts earning up to 3.90% variable APY, and tax-advantaged IRAs for retirement savings. It manages over $65B in assets for more than 1 million customers, focusing on ease, tax efficiency, and long-term returns. Core portfolios have delivered over 9% composite annual time-weighted returns after fees since launch.
Key Features
- Diversified, expert-built portfolios using low-cost exchange-traded funds.
- Tax-loss harvesting to turn market dips into tax savings, with nearly 70% of customers covering fees through estimated savings.
- Ongoing portfolio monitoring, rebalancing, and dividend reinvestment.
- High-yield cash account with 3.25% variable APY, 8x the national average.
- $0 fees on cash accounts with no monthly or maintenance costs.
- FDIC insurance up to $2 million per account ($4 million for joint) through program banks.
- Tax-coordinated IRAs (traditional, Roth, SEP) for maximum efficiency.
- Personalized retirement planning with savings recommendations and adjustments.
- Fractional share trading and no commission or management fees on self-directed investing (wrap fee waived).
Pros & Cons
Pros
- Quick and easy transfers between bank and Betterment (usually two business days).
- One user had a positive experience with support resolving an issue.
Cons
- Poor customer support (no phone availability, long delays in responses, inability to speak with supervisors).
- Data security and privacy issues (unauthorized access to customer information, refusal to delete data unless in California).
- Hidden fees (2% loss on bond fund, increased base fee from $500/year to $1200/year with exit fee option).
- Fund access delays (5–7 business days for transfers, holds on withdrawals, frozen funds).
- Scam allegations (manipulation, fraud, spamming via email registration).
- Difficulty closing accounts or transferring out.
What Users Say About Betterment
Quotes from G2, Reddit, and other public reviews
- 'Quick and easy transfers between bank and Betterment (usually two business days)' – User, Trustpilot.
- 'One user had a positive experience with support resolving an issue' – User, Trustpilot.
- '100% scam' – Verified user, Trustpilot.
- 'Poor customer support' – User, Trustpilot.
- 'Data security issues' – User, Trustpilot.
- 'Hidden fees' – User, Trustpilot.
Pricing
0.25% annual fee (Digital); 0.40% for Premium ($100K+); cash up to 3.90% APY
Digital plan: 0.25% annual advisory fee. Premium: 0.40% for $100K+ with human advisor access. High-yield cash: up to 3.90% variable APY, $0 fees. Tax-loss harvesting may cover fees for many users. See official website for current pricing.
Affiliate link · Not financial advice
Final Verdict
Betterment provides automated, tax-efficient investing with strong long-term performance, but reviews highlight significant issues with support and security. It may appeal to hands-off investors, but risks should be weighed. This is not financial advice; conduct due diligence.
Affiliate link · Not financial advice
About the Reviewer
Sam Xu
Verified ExpertMelbourne AI Expert • Melbourne, Australia
Sam Xu is a Melbourne-based AI specialist with over 8 years of experience in fintech and AI tool evaluation. He has researched 100+ investment tools and helps traders and investors choose the right technology for their needs.
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