Betterment Help Center (2024)

FAQs

What happens if Betterment fails? ›

At a high level, you can think of SIPC as providing protection for funds held in a brokerage account in the event that the brokerage fails. The Securities Investor Protection Corporation (SIPC) provides insurance that protects your investments, including those held by our broker, Betterment Securities.

Are there any limits on transactions? Daily ATM Withdrawal Limit: $510 This limit includes any ATM surcharge fees charged by the ATM operator. Remember that we'll reimburse ATM fees at any ATM worldwide, wherever Visa is accepted.

Additionally, both companies are among the winners in our list of the best robo-advisors of 2023, with Wealthfront winning best overall, best for goal planning, best for portfolio construction, and best for portfolio management, while Betterment is best for beginners and cash management.

One of the biggest downsides to using Betterment is that you can't pick your own investments, as the only option is to use the automated investing services. And while Betterment's fees are quite reasonable, there are other platforms with lower fees.

Robo-advisor Betterment agreed to pay $9 million to settle allegations that it made misstatements about its tax-loss harvesting services, the Securities and Exchange Commission said.

The SEC's order finds that, from 2016 to 2019, Betterment, in communicating with clients, misstated or omitted several material facts concerning TLH, a service that scans clients' accounts for opportunities to reduce their tax burden.

Yes, Betterment is legit. It is registered and regulated by the SEC and FINRA, like traditional investment advisors and brokers. Betterment also invests in considerable safety measures for its users. Betterment has over 850,000 users and $45 billion in assets under management.

We do not charge any trading fees or assess penalties for requested withdrawals or account closures. It's your money and is always accessible to you.

If you apply for a loan, it must meet the terms set out in your plan's loan policy. Typical terms include a maximum loan of up to 50% of your vested account balance (capped at $50,000 and further restricted by loans you had in the last 12 months), and repayment within 5 years.

Betterment offers tax-loss harvesting for users with taxable accounts. Fidelity Go doesn't offer tax-loss harvesting but does provide tax-advantaged funds (i.e. municipal bonds) to reduce your tax burden over time. Betterment is not a licensed tax advisor.

Who is better than Betterment? ›

Betterment's top competitors include Folio, BrightPlan, and Magnus. FOLIO provides an algorithm-based service, which acts as an automated money manager for lower fees and less initial capital than traditional services but also provides … Betterment's Analyst Briefing includes information on: Pricing.

In the last 30 Years, the Betterment Robo Advisor 100 Portfolio obtained a 8.52% compound annual return, with a 15.76% standard deviation.

The Bottom Line. Betterment has become arguably the most popular robo-advisor for good reason: It offers a wide selection of portfolios, an excellent user experience, high-quality automated portfolio management, and competitive fees.

Betterment does not store your credentials. Our trusted partner for account aggregation protects the credentials using bank-level encryption both when transmitted and when stored.

For larger accounts, Acorn's flat monthly fee could make it a significantly cheaper option, just to name one example. And if you're planning to open a joint investment account with your spouse, Betterment is the clear winner. The bottom line is that the best one for you depends on what features matter the most to you.

SIPC membership: Betterment provides Securities Investor Protection Corporation (SIPC) insurance, like any investment broker. This insurance covers your portfolio and uninvested cash in case Betterment goes bankrupt. Your portfolio is insured up to $500,000, with up to $250,000 maximum for uninvested cash.

Is Betterment FDIC-insured? Yes, funds deposited into Betterment Cash Reserve accounts are FDIC insured up to $1 million maximum (up to $250,000 per partner bank, including any existing deposits at those banks) through a deposit sweep program. Joint Cash Reserve accounts are eligible for up to $2 million FDIC coverage.

Typically, when a brokerage firm fails, the Securities Investor Protection Corporation (SIPC) arranges the transfer of the failed brokerage's accounts to a different securities brokerage firm. If the SIPC is unable to arrange the accounts' transfer, the failed firm is liquidated.

Your cash is insured by the Federal Deposit Insurance Corporation (FDIC). This coverage protects your cash in the event that a bank goes out of business.