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Betterment

Best for: Goal-based planning, with human help as an option

0.25% a year

Advisory fee

$0

To start

As of · sources in Details

Three young girls, the eldest carrying a baby, running along a wooden boardwalk toward their smiling parents at golden hour.

Pros

  • No minimum balance
  • Goal-based planning tools
  • Tax-loss harvesting

Cons

  • $5/month on small balances without recurring deposits
  • Premium plan's 0.65% fee is higher

Who it fits

You want to save toward several goals at once

What reviewers say

Reviewers like Betterment's goal-based planning, flexible portfolios and fractional shares. Without recurring deposits, the monthly fee weighs on small balances, and there's no direct indexing.

Paraphrased from NerdWallet, Betterment review; NerdWallet, Best robo-advisors.

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Details: full breakdown and sources

The numbers

Annual advisory fee
0.25% a yearOr $5/month unless you deposit $200+/month or have $24K+. Premium: 0.65%.As of · source
Minimum to start
$0No minimum balance.As of · source
Tax-loss harvesting
YesAs of · source

The breakdown

A goal-based robo-advisor with no minimum balance, a flat monthly fee for small balances and an optional plan with advisor access.

Betterment's investing accounts cost $5 a month, or 0.25% a year once you set up recurring deposits of $200+ a month or have a balance of $24,000 or more. There's no minimum balance.

A Premium plan adds access to an advisor for a 0.65% yearly fee. Betterment includes tax-loss harvesting.

Review themes, point by point

  • Reviewers like Betterment's goal-based planning tools and its range of portfolio options, including ways to customize.
  • Fractional shares mean all of your cash gets invested.
  • The $5 monthly fee is a large share of the cost on a small balance if you don't set up recurring deposits.
  • It doesn't offer direct indexing.

Reviews reflect each publisher's view on the day they wrote it.

All pros

  • No minimum balance
  • Goal-based planning tools
  • Tax-loss harvesting
  • Optional plan with advisor access

All cons

  • $5/month on small balances without recurring deposits
  • Premium plan's 0.65% fee is higher

Might fit if

  • You want to save toward several goals at once
  • You'll set up automatic monthly deposits

Maybe look elsewhere if:

  • You'll keep a small balance with no regular deposits