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About Betterment
What is Betterment?
Betterment is an automated investing and financial planning platform designed to build and manage your wealth with minimal effort. It solves the problem of having to research, pick, and rebalance investments yourself — the technology does the heavy lifting for you. Betterment is for anyone who wants to grow their savings or retirement funds without spending hours managing a portfolio. It's not for day traders or those who want full control over every trade (though a self-directed option is available).
How does it work?
You open an account (Investing, Cash Reserve, or IRA), fund it, and Betterment puts your money into a globally diversified, expert-built portfolio. It automatically rebalances, reinvests dividends, and uses tax-loss harvesting to potentially lower your tax bill. The platform also offers a high-yield cash account (currently 4.00% variable APY) for savings.
Who is it for?
Betterment is ideal for busy professionals, retirement savers, and first-time investors who want a hands-off approach. Use it to build an emergency fund, save for a house, or grow a retirement nest egg with a traditional or Roth IRA. Over 1 million customers use Betterment to invest with confidence and ease.
Key features
- Automated investing — Diversified, expert-built portfolios with ongoing rebalancing and tax-loss harvesting.
- High-yield cash account — Earn 4.00% variable APY (10x the national average) with no monthly management fees.
- Tax-advantaged IRAs — Traditional, Roth, and SEP IRA options with automated tax coordination.
- Tax-loss harvesting — Turn market dips into potential tax savings; often covers the advisory fee.
- Self-directed investing — Trade thousands of stocks and ETFs with no commission fees and no management fee on those assets.
- Fractional shares — Invest in high-priced stocks by buying fractions.
- Securities lending (opt-in) — Earn extra monthly income from eligible stocks and ETFs you already own.
SaaSpartout Score
7.6
/10
Editorial score from our review methodology — not user ratings.
◆ AI advisor — 30 seconds, no signup
Why are you looking at Personal Finance tools today?
Betterment Pricing
Betterment pricing: from $5/mo.
For comparison: the median starting price in Finance & Accounting is $20/month, measured across 145 tools we track. See the full SaaS Pricing Index →
Investing (Standard)
$5/month for balances under $24,000 (or until you set up $200+ monthly recurring deposit). 0.25% annually for balances of $24,000–$1M. Includes expert-built portfolios, automated rebalancing, tax-loss harvesting, and goal planning. Fee waivers on self-directed assets.
Cash Reserve
No monthly management fees. 4.00% variable APY. FDIC insurance up to $4M (individual) / $8M (joint). Easy transfers to/from investing accounts.
Premium
0.65% annual management fee. Includes all Investing features plus access to a certified financial planner for personalized advice. Fee discounts for balances over $1M.
Frequently asked questions
Is Betterment free?
Betterment has no minimum balance, but it is not free. Investing accounts cost $5/month (under $24K balance) or 0.25% annually. Cash Reserve has no monthly management fees. A premium plan is available at 0.65% annually.
How much does Betterment cost?
Betterment pricing starts at $5/month for investing (or 0.25% annually if you set up recurring deposits of $200+/month or have a balance of $24K+). Premium costs 0.65% annually. Cash accounts have no monthly fees.
Who is Betterment best for?
Betterment is best for hands-off investors, retirement savers, and anyone who wants automated portfolio management with tax-saving features. It's not ideal for active traders who want full control over every trade.
What is the minimum deposit for Betterment?
Betterment has no minimum balance requirement for traditional investment portfolios. You can start with any amount.
Does Betterment offer a retirement account?
Yes. Betterment offers traditional, Roth, and SEP IRAs with automated investing, tax-loss harvesting, and tools to coordinate retirement accounts for maximum tax efficiency.
What are the top alternatives to Betterment?
Popular alternatives include Wealthfront, SoFi Invest, and Vanguard Digital Advisor. Each offers automated investing with different fee structures and features.
