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Is Betterment Safe?

Betterment investment platform is an original Robo-advisor. Betterment offers a wide array of features and tools to investors. Forbes listed this highly functional and sophisticated platform as the best Robo-advisor. Many investors have concerns about Betterment’s security features. Like other investors, do you maybe asking yourself, “is Betterment safe?” If yes, then let’s evaluate security features offered by Betterment and learn whether it is safe.

What is Betterment?

Betterment is an independent Robo-advisor with numerous investing options. Bankrate reviewed this platform and listed it in the top investment platforms in the industry. Betterment offers two tiers for different investment options and offers competitive prices for both tiers. The difference between these tiers is the number of human advisors. You will get advanced features with both these tiers. The features include:

  • Tax-loss harvesting
  • Rebalancing
  • Cash management
  • Safe and secure investing

Betterment enables investors to build and customize investment portfolios. Also, you can plan and manage charitable giving and taxes using extra tools. If you want a reliable and trustworthy Robo-advisor with customized portfolio options, you should opt for the Betterment investment platform.

Is Betterment Safe?

Many novice investors have a similar question, “is Betterment safe or not”. You might have the same concern. A clear answer to this question is yes. But, let’s learn why.

Firstly, Betterment is one of the largest investment services with a good reputation in the market and offers services to a huge group of investors.

The users can choose from two different account options, which include:

  • Betterment Digital
  • Betterment Premium

Betterment Digital allows users to create and manage portfolios under $100,000. The users can access SRI investing, tax-loss harvesting, and rebalancing features with 0.25% of the annual management fee. On the other hand, Betterment Premium is suitable for investors with more than a $100,000 account balance. The management fee for this account is 0.40%. With this account, you can access certified financial planners.

With Betterment, users get advanced security features and strict policies. This makes this platform trustworthy. Investing with Betterment means that you have complete control over your assets and securities.

Furthermore, you can keep Betterment’s company funds and personal investment money in different membership accounts. This gives you complete authority to withdraw, transfer, and add your money without restrictions. Also, Betterment won’t pay your costs without your permission.

When you close your account, the balance will automatically move to your bank account linked with the platform. The Securities Investor Protection Corporation is a perfect example of this. The SIPC protects Betterment accounts against error and losses. All these features make your investment journey safe and successful. That said, you should be aware of these five things to know before choosing Betterment.

Subscription Plans for Betterment Investment Platform

Betterment investment platform offers a wide range of investment plans, here are some popular ones:

1. A Safety Net

Betterment offers a safety net subscription plan for clients with high-priority goals. With this plan, you can achieve your goals and create an investment portfolio faster. Also, there are fewer risks involved. If you are in a financial emergency, you can opt for this plan and allocate your stocks for high returns.

2. Retirement

You should format your retirement plan as early as you can. The earlier you register with this plan, the more benefits you will get in the future. You can also join Betterment if there is a decade remaining for your retirement. When you purchase stocks ata young age you can double the profits according to the difference between buying date and retirement date. When the retirement age is near, bonds would be an ideal option.

3. General Investing

When you have no future goals you can choose general investing. This subscription plan offers investment planning and advice. It isn’t necessary to have a withdrawal date to join this plan. If you are going for long-term savings, you can choose this plan.

4. Savings and Checking

Betterment Everyday Savings plan allows you to generate a return on your money. You can earn about 2.39% APY. Also, you can choose from a wide range of saving programs and accounts. Different accounts vary in minimum deposit amount. 

5. Education

Are you going back to college or want to enroll your kids in a school? In both cases, you can create an education plan. With Betterment, you can anticipate your returns with invested time and costs. You can create separate education goals for each kid and secure their future even if you have more than one child.


If you are still unsure and have the same question, “is Betterment safe”, the answer is yes. An excellent way to find the legitimacy of the Betterment investing platform is by reading more about the platform.

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