Key Points
- New Fee Structure: Betterment has introduced a new Premium plan with a 0.65% AUM management fee.
- Enhanced Benefits: Premium customers now enjoy additional benefits such as a preferred rate on Cash Reserve and discounts on estate planning services.
- Special Offer: For a limited period, existing customers can upgrade to the new Premium plan without extra costs for the first 60 days. Existing customers can also choose to stay in their current plan without the added benefits.
Betterment announced significant enhancements to its Premium service plan, effective April 25, 2024. The upgraded plan includes a new fee structure and expanded benefits.
Under the new Premium plan, customers will be subject to an annual management fee of 0.65% AUM. This is a noticeable increase from the previous fee of 0.40%. The $100,000 minimum balance requirement remains unchanged, continuing to reflect the plan's aim at more established investors seeking comprehensive financial guidance and an array of investment options.
The enhanced 0.65% fee applies exclusively to Traditional and Crypto Investing accounts. It does not affect Betterment's Cash Reserve, Betterment Checking, 401(k), or HSA accounts, which are designed to offer flexible and accessible financial tools without additional costs.
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New Benefits
One of the best new benefits for Premium subscribers is the access to preferred rates on Betterment's Cash Reserve. Customers will receive an additional 0.25% annual percentage yield (APY) on top of the variable rate, which promises to optimize their returns on cash holdings significantly. This compelling rate is already near the top of the best savings accounts.
Furthermore, Premium members will benefit from a 20% discount on estate planning services through a partnership with Trust & Will, enhancing their ability to manage wealth and legacy planning efficiently.
Betterment Premium now allows customers to engage directly with Certified Financial Planners (CFPs) through 1:1 sessions. These experts provide in-depth financial planning, personalized advice, and guidance on utilizing Betterment’s cutting-edge tools and technology. Additionally, Premium customers will receive exclusive quarterly commentary from the CFP team, designed to offer insights and perspectives on market trends and financial planning strategies.
Upgrade Options
For a limited time, those currently using Betterment services can upgrade to the new Premium plan without any additional cost for the first 60 days. This initiative aims to give existing clients an opportunity to experience the new features and benefits without immediate financial commitment.
Current Premium customers have the option to remain on their existing plan at a 0.40% fee or to upgrade and take advantage of the enhanced services and benefits. This flexibility ensures that all subscribers can tailor their investment strategy to their specific needs and financial goals.
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Editor: Colin Graves
Robert Farrington is the founder of The College Investor and is widely recognized as one of the nation’s leading voices on student loan debt and saving for college. He holds an MBA from UC San Diego Rady School of Management and has spent over 15 years researching, writing, and advising on student loans, 529 plans, financial aid programs, and saving and investing for young professionals.
Robert has been featured in the The New York Times, The Wall Street Journal, The Washington Post, NBC News, and Forbes, where he has been a regular personal finance contributor for over a decade. His work combines both professional expertise and personal experience – he successfully navigated his own student loan repayment journey and has helped thousands of readers do the same.
He is committed to making the intersection of personal finance and education transparent and accessible. You can learn more about Robert on the About Page or on his personal site RobertFarrington.com.