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Betterment review

Updated September 28, 2026 · SumCue Editorial Team · Facts checked September 26, 2026

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.

Our verdict

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.

Key facts

Best for
US savers who want robo-advice and a variable cash yield from a single app, starting small.
Management fee
0.25%↗
Minimum investment
$10↗
Regulators
U.S. Securities and Exchange Commission (SEC) - registered investment adviser, Financial Industry Regulatory Authority (FINRA) - Betterment Securities broker-dealer member, SIPC↗
Investor protection
SIPC up to USD 500,000↗
Account types
IRA, Roth-IRA↗
Portfolio types
ETF, ESG, Cash, Crypto↗
Legal entity
MTG LLC↗
Headquarters
United States↗
Founded
2008↗
Support channels
Phone, Email, Chat, Help-centre↗
Official website
betterment.com

Brokers

Minimum deposit
$10↗
Account fee
$0↗
Markets
Stocks, ETFs, Bonds↗
Deposit and withdrawal fees
No fees↗
Interest on cash
3.5%↗
Pricing model
No monthly fee

Savings

Headline rate
3.5%↗
Rate type
Variable↗
Deposit protection
FDIC up to USD 250,000↗
Access terms
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↗
Account kind
Cash management↗

Facts checked September 26, 2026, 7 sources

Apps and profiles

Get the app
App StoreGoogle Play
Elsewhere
WikidataWikipediaXLinkedIninstagram.com

Pros and cons

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.
  • The minimum investment of $10 is below the site minimum investment median of €25.
  • Support runs on phone, email and chat, giving phone, email, chat and a help centre.

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.
  • Markets move in both directions, and across the brands compared here 70.15% of retail investor accounts lose money.
Betterment

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Scored 9.7 / 10 by SumCue.

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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.

Where it sits among rivals

Betterment is neither the cheapest name on the list nor the dearest. On management fee it sits at 18 of 49 robo-advisors ranked against each other. On minimum investment the position is 28 of 82 brands. Both placements leave the brand in the middle of the field: the cost of staying invested is competitive, and the amount needed to open the account is modest, but neither measure puts Betterment at either end of the ranking. Read the two together, because a charge on a growing portfolio matters far more for what you keep over the years than the size of the opening deposit does.

Rates and terms

The headline rate is 3.5%, and the same figure is shown as the cash interest, 3.5%. The rate type is variable, and that is the line worth reading carefully. A variable rate follows the policy backdrop, so the amount a saver pockets can rise or fall with decisions taken elsewhere instead of staying put. A fixed rate would commit a provider to a set figure for a set period, and that is not how this one behaves. Savers building a cash buffer, or anyone who wants a known number for a known stretch, are the readers most affected by the difference.

Fees and currency costs

The management fee is 0.25%, and it is the figure that carries the most weight here because it applies to the portfolio for as long as money is held, rather than being a one-off. The minimum investment is $10, which sets the floor for opening an account. Together they describe a service that is straightforward to start and keeps taking a share afterwards. Because the charge applies to holdings, it does not shrink as the account grows, so the running cost scales with what you keep in it. The entry point is low enough that the fee, not the deposit, is the number that shapes the long-term bill.

Who runs it

The legal entity behind the service is MTG LLC, and the operation is based in the United States. It was founded in 2008, which counts for a provider that holds savings alongside investments. On the regulatory side, Betterment is registered with the U.S. Securities and Exchange Commission as an investment adviser, its brokerage arm is a Financial Industry Regulatory Authority member, and the firm appears in the membership register as SIPC member 51906. Support runs on phone, email and chat, so phone, email, chat and a help centre are all routes in. Put together, this is a US business under US oversight, which narrows who can open an account and where it sits in the protection system.

How Betterment compares

Where Betterment is available

Available
United States
Licence in United States
U.S. Securities and Exchange Commission (SEC) - registered investment adviser, checked September 26, 2026
Licence in United States
Financial Industry Regulatory Authority (FINRA) - Betterment Securities broker-dealer member, checked September 26, 2026
Licence in United States
SIPC (SIPC member 51906), checked September 26, 2026

Countries from the brand (Source, checked September 26, 2026)

Frequently asked questions

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.

What interest does the cash earn, and is that rate fixed?+

The headline rate is 3.5% and the rate type is variable, with the same figure shown as cash interest, 3.5%. Because it is variable, the amount earned follows the policy backdrop and can move in either direction. The site median headline rate is 3%, so this yield sits above the middle of the market.

Is my money protected if something goes wrong?+

Investments sit under SIPC protection of SIPC up to USD 500,000, and Betterment appears in the membership register as SIPC member 51906. Cash held in the sweep is placed with programme banks under FDIC up to USD 250,000. The firm is registered with the U.S. Securities and Exchange Commission as an investment adviser, and its brokerage arm is a Financial Industry Regulatory Authority member.

Can I withdraw cash whenever I want?+

Yes. The access terms set no minimum balance and allow unlimited withdrawals, and the deposit and withdrawal fee reads No fees. There is no notice period to serve and no balance to maintain. Cash is swept to a network of FDIC-insured programme banks rather than held in a single account, so the sweep sits with those banks.

What can I actually invest in?+

The available markets are stocks, etfs and bonds, and the portfolio options are etf, esg and cash, which covers exchange-traded funds, a sustainability-tilted range, a cash option and a crypto option. The account is managed for you, so you hold portfolio options rather than choosing individual positions yourself.

Which account types can I open?+

The account types are ira and roth ira, so a traditional and a Roth retirement account are the wrappers on offer. The operation is based in the United States, and no UK ISA or workplace pension wrapper appears in that list. Readers who need a shelter inside the UK tax system should compare other providers.

How do I get help with the account?+

Support runs on phone, email and chat, so you can reach the firm by phone, by email, in live chat or through the help centre. Several routes mean a question about a transfer or a charge can go to a person rather than a form. The help centre handles routine account questions on your own.

Sources

  • sipc.org/list-of-members checked September 26, 2026

    Backs: Legal entity, Licences

    “reportingFileNumber=51906; name=MTG LLC”

  • betterment.com checked September 26, 2026

    Backs: Account types, Minimum investment, Portfolio types

    “Save with tax-advantaged traditional, Roth, and SEP IRAs.”

  • en.wikipedia.org/wiki/Betterment_(company) checked September 26, 2026

    Backs: Founded

    “Betterment was founded in 2008 in New York City by Jon Stein”

  • betterment.com checked September 26, 2026

    Backs: Markets

    “Get a globally diversified portfolio that we build and manage for you - Automated investing”

  • betterment.com/cash-reserve checked September 26, 2026

    Backs: Access terms, Account fee, Account kind, Interest on cash, Deposit protection, Deposit and withdrawal fees, Headline rate, Minimum deposit, Rate type

    “Unlimited withdrawals. No fees. ... No minimum balance. ... you can grow your money with us for as little as $10.”

  • betterment.com/contact checked September 26, 2026

    Backs: Headquarters, Support channels

    “Corporate office mailing address: Betterment LLC 450 West 33rd Street, FL 11 New York, NY 10001”

  • betterment.com/pricing checked September 26, 2026

    Backs: Investor protection, Management fee, Pricing model, Monthly fee, Regulators

    “Fees are $5/month or 0.25% annually for investing accounts, and 0.65% annually for our Premium plan.”

Compiled from 7 source pages, checked September 26, 2026. We did not open an account.

Betterment

Betterment

US savers who want robo-advice and a variable cash yield from a single app, starting small.

9.7/10See alternatives