Updated September 29, 2026 · SumCue Editorial Team
Ally Bank vs Betterment
Ally Bank
Betterment
Higher score in this comparison
Where Ally Bank and Betterment differ
| Compare | Ally BankReviewSee alternativesSee alternatives | BettermentReviewSee alternativesSee alternatives |
|---|---|---|
| Minimum deposit | $0Lower | $10 |
| Markets | Stocks, ETFs, Options, Funds, BondsCovers more | Stocks, ETFs, Bonds |
| Regulators | SEC, FINRA, FDIC | U.S. Securities and Exchange Commission (SEC) registered investment adviser, Financial Industry Regulatory Authority (FINRA) Betterment Securities broker dealer member, SIPC |
| Account types | Joint, IRA, Roth IRACovers more | IRA, Roth IRA |
| Stock trade fee | $0 | Not confirmed |
| Inactivity fee | $0 | Not confirmed |
| Options contract fee | $0.50 | Not confirmed |
| Deposit and withdrawal fees | Not confirmed | No fees |
| Interest on cash | Not confirmed | 3.5% |
Same on both: Account fee ($0), Investor protection (SIPC up to USD 500,000).
We earn a commission when you sign up through links on this site. Partner status can affect where a brand appears in our rankings. Partners with a live offer in your country come first, then every other brand by score.
Key differences
- Betterment scores higher overall: 9.7 vs 9.6.
- Regulators: only Ally Bank offers SEC, FINRA, FDIC.
- Regulators: only Betterment offers U.S. Securities and Exchange Commission (SEC) registered investment adviser, Financial Industry Regulatory Authority (FINRA) Betterment Securities broker dealer member, SIPC.
- Founded is lower at Ally Bank: 1919 vs 2008.
- Minimum deposit is lower at Ally Bank: $0 vs $10.
- Markets: only Ally Bank offers Options, Funds.
- Account types: only Ally Bank offers Joint.
- Pricing model: only Ally Bank offers Commission free.
- Pricing model: only Betterment offers No monthly fee.
Our verdict on each
Ally Bank
Ally Bank suits US savers who want easy-access cash and self-directed investing in one place. Savings pay 3.1% at a variable rate, the brokerage side covers stocks, etfs and options, and the trading platform is ranked 1 of 166 brands on what a trade costs.
Betterment
Betterment suits US savers who want a managed portfolio and a cash sweep in the same app, charging a management fee of 0.25% on top of an account fee of $0. Cash earns a variable 3.5%, so the income side moves with policy rates, and its overall score is 7.9.
Score breakdown
| Area | Ally Bank | Betterment |
|---|---|---|
| Cost | 9.4Account fee $0, inactivity fee $0 and stock trade fee $0, with savings paying 3.1%. | 9.5HigherManagement fee of 0.25% ranks 18 of 49, and the account fee is $0. |
| Offer | 9.6 | 9.7Higher |
| Trust | 9.8 | 9.9Higher |
Where each is licensed and available
| Country | Ally Bank | Betterment |
|---|---|---|
| United States | FINRA 136131 FDIC FDIC cert 57803 | SIPC SIPC member 51906 |
Available in 1 country for both.
Feature by feature
| Markets | Ally Bank | Betterment |
|---|---|---|
| Stocks | Yes | Yes |
| ETFs | Yes | Yes |
| Options | Yes | No |
| Bonds | Yes | Yes |
| Funds | Yes | No |
| Account types | Ally Bank | Betterment |
|---|---|---|
| IRA | Yes | Yes |
| Roth IRA | Yes | Yes |
| Joint | Yes | No |
How they place
| Ranking | Ally Bank | Betterment |
|---|---|---|
| Savings | 65 of 1492 | 56 of 1492 |
| Savings accounts | 47 of 658 | 39 of 658 |
| Investing | 53 of 654 | 52 of 654 |
| Stock and ETF brokers | 31 of 358 | 30 of 358 |
| Robo-advisors | 8 of 154 | 7 of 154 |
Every fact side by side
| Fact | Ally Bank | Betterment |
|---|---|---|
| Pricing model | Commission free | No monthly fee |
| Legal entity | Ally Bank | MTG LLC |
| Headquarters | United States | United States |
| Founded | 1919Lower | 2008 |
| Support channels | Email, Chat, Phone, Help centre | Phone, Email, Chat, Help centre |
Savings
| Fact | Ally Bank | Betterment |
|---|---|---|
| Headline rate | 3.1% | 3.5%Higher |
| Rate type | Variable | Variable |
| Deposit protection | FDIC insured (certificate 57803) | FDIC up to USD 250,000 |
| Access terms | 10 limited withdrawals and transfers per statement cycle | Cash Reserve: no minimum balance ($10 minimum deposit), unlimited withdrawals, sweep cash held at FDIC-insured program banks up to $8M (joint) |
| Monthly fee | $0 | $0 |
| Account kind | Easy access | Cash management |
Robo-advisors
| Fact | Ally Bank | Betterment |
|---|---|---|
| Management fee | 0% to 0.3%Lower | 0.25% |
| Minimum investment | $100 | $10Lower |
| Portfolio types | ETF, ESG, Cash | ETF, ESG, Cash, CryptoCovers more |
Where each stands against the rest
| Fact | Ally Bank | Betterment | Median |
|---|---|---|---|
| Minimum deposit | $0below the median | $10below the median | $23.50 |
| Stock trade fee | $0at the median | Not confirmed | $0 |
| Account fee | $0at the median | $0at the median | $0 |
| Inactivity fee | $0at the median | Not confirmed | $0 |
| Options contract fee | $0.50below the median | Not confirmed | $0.65 |
| Interest on cash | Not confirmed | 3.5%above the median | 2.875% |
Median across 138 listed providers.
Pros and cons
Ally Bank
Pros
- Savings pay 3.1% at a variable rate, a little above the site median of 3%.
- Trading covers stocks, etfs and options with a commission free model and a minimum deposit of $0.
- Cash is FDIC insured (certificate 57803), and investments are covered by SIPC up to USD 500,000.
Cons
- Savings access stops at 10 limited withdrawals and transfers per statement cycle, so a large emergency fund is awkward to hold here.
- Options are the exception to commission free trading, with a charge of $0.50.
- Robo portfolios charge a management fee of 0% to 0.3% and start at $100.
Betterment
Pros
- A single app holds a managed portfolio and a cash sweep paying a variable 3.5%.
- The management fee of 0.25% sits under the site median management fee of 0.35%.
- The monthly fee is $0 and the minimum deposit is $10, so an account that is opened and left alone carries no standing charge.
Cons
- Cash pays a variable rate of 3.5%, so the income from the sweep can be cut without warning.
- Betterment ranks 18 of 49 on management fee, so cheaper robo-advice sits on the same list.
- Account types cover ira and roth ira, which rules out a UK ISA or workplace pension wrapper for most UK readers.
Who each suits
Ally Bank
Who it suits
- US households, since the bank is headquartered in the United States and its savings pay 3.1%.
- First-time investors, who can start trading at $0 on a commission free model.
- Retirement savers, who can hold joint, IRA and Roth IRA accounts.
Who should look elsewhere
- CFI, for readers who want forex, contracts for difference or crypto: its markets are stocks, etfs and forex, against stocks, etfs and options here.
- bunq, for euro savers who prefer an account in euros, since its minimum deposit is set at €10.
- Fiesta Credito MX, for readers in Mexico who want a lender regulated by CONDUSEF rather than SEC, FINRA and FDIC.
Betterment
Who it suits
- US savers who want automated investing and a variable cash yield handled from the same app.
- First-time investors who can begin from a minimum investment of $10 without a large opening balance.
- Retirement savers who want a traditional or Roth IRA built around automatic contributions.
Who should look elsewhere
- eToro, if you would rather choose individual markets yourself, since the portfolio options here are etf, esg and cash.
- Axos Invest, whose minimum investment of $100 suits readers who want a higher entry point and a managed portfolio.
- Empower Personal Dashboard, whose management fee is 0%, for readers who put the advisory charge ahead of a managed account with a cash sweep.
Current offers
Betterment
Current offer
Bonus
Invest and earn up to $2,000: up to $2,000
Terms apply; new customers only; open any individual investing account and make a deposit
Source, checked September 26, 2026
Bonus
0.75% APY boost on Cash Reserve: 0.75% APY boost, 4.25% variable APY on balances up to $1M
New clients with a qualifying deposit; guaranteed through February 15; base variable APY 3.50% as of 9/21/2026; $10 min deposit for base APY
Source, checked September 26, 2026
Discount code
Discounted mortgage rate through Rate partnership: up to 0.75% off
Via partnership with Rate; terms apply
Source, checked September 26, 2026
Country by country
| Country | Ally Bank | Betterment |
|---|---|---|
| United States | Yes | Yes |
Questions about each
Ally Bank
What does it cost to keep an account open?+
The brokerage account fee is $0 and the online savings account carries a monthly fee of $0. The inactivity fee is also $0, so an unused account is not quietly charged. The one regular trading charge is on options, at $0.50.
Is there a minimum deposit to start?+
Self-directed trading opens at a minimum deposit of $0, and Ally Bank ranks 1 of 218 brands on that measure. Automated investing is the exception, with a minimum investment of $100 before the first purchase.
Betterment
What does Betterment charge to run an account?+
Two figures matter. The management fee is 0.25%, charged on the portfolio, and the monthly fee is $0, with an account fee of $0. Taking money in and out carries nothing, with the deposit and withdrawal fee reading No fees. Over a year the management fee is the line that reduces the balance, since nothing else here charges for holding the account open.
How much do I need to open an account and start investing?+
The minimum investment is $10 and the minimum deposit for the cash side is $10. The site median minimum deposit is €0.88 and the median minimum investment is €25, so the floor here sits inside the normal range rather than at either extreme. Neither figure asks for a large opening balance.
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Ally Bank
Betterment