• What does Betterment cost?

    Last Updated: February 01, 2017 8:25PM EST
    Betterment offers three different fee plans based on your financial needs.

    Our Digital plan costs just .25% per year and offers unlimited access to automated portfolio management, tax efficient investing features, personalized financial dashboards and award-winning customer support. This plan has no minimum balance requirement.

    If you’d like access to our team of CFP® professionals and licensed financial experts, you can elect into our Plus plan for .40% per year, which makes you eligible for an annual phone consultation as well as proactive account monitoring by our team of licensed experts. This plan requires a minimum balance of $100,000.

    If you need more than one consultation per year, you can elect into our Premium plan for just .50% per year, which makes you eligible for unlimited calls with our team of CFP® professionals and licensed financial experts. This plan requires a minimum balance of $250,000.

    All fee plans come with a fee cap on balances greater than $2 million. 

    Betterment's single management fee covers everything you need, including transactions, trades, transfers, rebalancing, advice, and account administration, among other things. Unlike other companies, Betterment does not charge you transaction fees to buy and sell securities.

    401(k) accounts through Betterment For Business are subject to a separate fee schedule and those balances aren’t included when determining your eligibility for Betterment Plus and Betterment Premium. 
  • Why are you changing your pricing?

    Last Updated: February 01, 2017 8:20PM EST

    Our business is built on delivering high-value services at a low cost. The pricing model we’ve had to date has supported the new features we’ve built over the years: Tax-Coordinated Portfolio™, Tax Loss Harvesting+™, RetireGuide™, better advice through external accounts, automated rebalancing, and more. 

    All of these features are designed to get you higher expected returns, but they also increase our trading and maintenance costs. In order to cover these costs, we made the decision to update our pricing to a flat rate of 0.25% for the Digital plan. We’ve had a tiered pricing model for four years, and we’ve learned that this flat rate will cover our costs, and still fund future innovation. For some customers, this update means that their fees will stay the same or go down. But for others, this update means that their fees will increase. This was not an easy decision, and we recognize your frustration as a result.

    This pricing change will allow us to build features that our customers want, but that we don’t have today. It will allow us to continue to deliver high-value, low-cost services, so that you get the highest expected returns you deserve. 
  • What is my new fee?

    Last Updated: February 01, 2017 8:33PM EST
    If your total household balance was this amount: You previously paid this amount:  You will now pay this amount for the Betterment Digital plan:  Your new price goes into effect on this date:
    Under $10k without a $100+/mo auto-deposit $3/month 0.25% of your average balance Jan. 31
    Under $10k with a $100+/mo auto-deposit 0.35% of your average balance 0.25% of your average balance Jan. 31
    $10k to $99,999 0.25% of your average balance 0.25% of your average balance Jan. 31
    $100k to $2MM 0.15% of your average balance 0.25% of your average balance June 1
    $2MM to $3.3MM 0.15% of your average balance 0.25% on the first $2MM.
    We will waive fees on the additional balance over $2MM.
    June 1
    $3.3MM+ 0.15% of your average balance 0.25% on the first $2MM.
    We will waive fees on the additional balance over $2MM.
    Jan. 31
     
  • What is included in the Betterment Digital plan?

    Last Updated: February 01, 2017 8:22PM EST
    Our Betterment Digital plan includes:
    • Fractional shares and free trades
    • Our low-cost, globally diversified investment portfolio, tailored for tax-advantaged or taxable accounts 
    • Automatic rebalancing
    • Tax Loss Harvesting+, which can boost your after-tax returns by an estimated 0.77% per year
    • Tax-Coordinated Portfolio, the most sophisticated form of asset location on the market (it can increase after-tax growth by an estimated 15% over 30 years)
    • RetireGuide, which ensures your holistic retirement plan is optimized and up-to-date, including external accounts 
    • The ability to sync external financial accounts which allows customers to get advice on assets held outside of Betterment 
    • Award-winning customer service, available 7 days a week

    Betterment Digital is our lowest-cost plan at 0.25%, making our services among the lowest-cost in the industry. We’re continuing to deliver a greater value than any other service available. All of our features are designed to grow your money more efficiently and effectively than any other service out there. We will never stop delivering services that improve how much more you take home, and there’s so much more to come. 
  • My fee was lower before the pricing update. Will I keep my lower rate?

    Last Updated: February 03, 2017 11:58AM EST
    If you had a balance of $100k to $3.3MM as of Jan. 31 and were on the 0.15% pricing plan, the price change will not go into effect until June 1. On June 1, your fee will go up to 0.25%. 

    For balances above $2MM, your fee will be 0.25% on the first $2MM. We will waive fees on the balance over $2MM.
  • Before the pricing update, I was planning to reach a balance of $100,000+ soon. If I reach that soon, will my fee be 0.15% or 0.25%?

    Last Updated: February 01, 2017 8:26PM EST
    If your Betterment balance increases to more than $100,000 by March 3, we will reduce your fee to 0.15% from March 3 until June 1. On June 1, your fee will increase to 0.25%.
  • What does this mean for the free time I’ve accrued before the pricing update?

    Last Updated: February 01, 2017 8:29PM EST
    If you’ve accrued free time through referrals or promotions, we will still waive our management fees for that time with the new pricing structure. You can also still earn additional free time.
  • What is your Satisfaction Guarantee?

    Last Updated: February 01, 2017 8:29PM EST
    We’re confident in the value we’re offering you today—even with the adjustment to our pricing. If for any reason you are not completely satisfied with your Betterment account, we will do everything we can to make it right, up to and including waiving Betterment’s management fees for the next 90 days.
  • Am I still charged the whole fee even if I don't use the product for the whole year?

    Last Updated: January 31, 2017 7:09AM EST
    No. Betterment’s fee is and is prorated across the year based on the average daily balance in your account, and a portion of this is charged quarterly (every 3 months). So if you withdraw money from your account, your average daily balance will decrease and your fee for the quarter will reduce accordingly. If you withdraw your entire balance before the end of the quarter we will simply charge the prorated fee at that time.

    We do not have fees for accounts with a $0 balance, so if you need your money you can still keep your account open without penalty.
  • Can you household accounts for families?

    Last Updated: February 01, 2017 8:30PM EST
    Betterment offers automatic householding for customers who open joint accounts or establish tax payer relationships with one another when turning on TLH+. We also offer manual householding for any two customers who reside at the same address. If you’d like to be householded, or removed from an existing household, please contact us at support@betterment.com.

    You can household your accounts to combine your balances for the purposes of meeting minimum balance requirements for our various plans or meeting the $2 million balance for the fee cap for any plan. 
  • Can I withdraw my money any time at no additional cost?

    Last Updated: June 14, 2016 7:09PM EDT
    Yes, you can withdraw your money from Betterment at any time. We do not charge you any trading fees nor penalties for making withdrawals or closing accounts. It’s your money, and is always accessible to you.

    Withdrawals generally take about 4-5 business days to process. However, if you have recently made a deposit, your withdrawal may be delayed due to the recent deposit needing to fully settle first.

    Betterment does not guarantee specific execution timelines. Deposits generally trade the same day if requested at least a half an hour prior to market close. Otherwise, withdrawals will be executed the following business day. We avoid trading on or around market open or close, as markets have historically been more volatile during this time. The dollar value reflected in your withdrawal request may fluctuate with market volatility until the trades are executed.

    When you withdraw, shares in your account are sold and this may have tax consequences. Betterment will always sell your shares in a way that minimizes taxes for you. We’ll sell shares that have lost value first (short-term losses, then long-term losses), and then we’ll sell shares that have gained value (long-term gains, then short-term gains).

    Tax Impact Preview allows you to see an estimate of the taxes you may owe before you make a withdrawal.
  • Where do I find the total fees paid to Betterment?

    Last Updated: February 03, 2017 11:59AM EST
    Your total fees can be found on your Activity page, filtered by “Fees” for the 2016 calendar year. You can then download a CSV statement to quickly total your 2016 fees. You can also see the total lifetime management fees paid to Betterment on the Performance tab, under “Total earnings.” Finally, you may find your quarterly fees detailed on your quarterly statements.
  • Should I choose Premium or Plus?

    Last Updated: January 31, 2017 7:16AM EST
    Both plans provide proactive account monitoring and access to our team of CFP® professionals and licensed financial experts. 

    The “Plus” plan provides one annual consult per calendar year with a member of our team of CFP® professionals and licensed financial experts. This plan costs .40% annually and has a minimum balance requirement of $100,000. 

    If you think you’d need more than one 45 minute financial consultation per year or have complex financial planning needs, the “Premium” plan allows for unlimited calls, costs just .50% annually and has a minimum balance requirement of $250,000. 

    If you’re not sure, you can start on the “Plus” plan and receive your one annual consultation. You can always switch between the two at anytime on the site.
  • How do you proactively monitor my account in the Plus or Premium tier?

    Last Updated: January 31, 2017 7:17AM EST
    For both our “Plus” and “Premium” plans, we offer proactive account monitoring for those customers who want additional reassurance everything is going as planned and peace of mind knowing there’s a financial expert who is looking out for them. Our financial experts will review your account periodically throughout the year and send you a personalized email with action items and guidelines on a variety of topics to boost the health of your accounts, including investment guidance, retirement planning, estate planning, tax tips, and more. 
  • What can I expect during my financial consultation?

    Last Updated: January 31, 2017 7:18AM EST
    We assist our customers with a broad range of financial topics, including investment advice, retirement planning, spotting hidden fees, lowering your taxes, transfers and more. Our team of licensed experts help you apply our automated strategies to your personal situation and can supplement our advice in areas our website does not yet cover.

    To make the most out of your consultation, we recommend syncing all of your external accounts beforehand. If you are married, we recommend completing your initial consultation with your spouse.

    If you are in the “Plus” or “Premium” plan, you can schedule a consult on the Advice page of your account, under the “Advice Team” tab, or by clicking here.
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