Betterment Increases Fees for New Premium Clients

Betterment Unveils Enhanced Premium Service Plan with New Fee Structure and Benefits

Betterment, a leading online investment platform, has announced significant upgrades to its Premium service plan set to take effect on April 25, 2024. The revamped plan includes a new fee structure and expanded benefits aimed at providing more comprehensive financial guidance to investors.

One of the key changes in the upgraded Premium plan is the introduction of an annual management fee of 0.65% AUM, up from the previous fee of 0.40%. Despite the fee increase, the $100,000 minimum balance requirement remains unchanged, catering to more established investors looking for a wide range of investment options and financial advice.

The enhanced fee structure applies specifically to Traditional and Crypto Investing accounts, while other Betterment accounts such as Cash Reserve, Betterment Checking, 401(k), and HSA accounts remain unaffected by the changes, offering accessible financial tools without additional costs.

In addition to the new fee structure, Premium subscribers will now have access to a range of exclusive benefits. These include preferred rates on Betterment’s Cash Reserve, a 20% discount on estate planning services through a partnership with Trust & Will, and the opportunity to engage with Certified Financial Planners (CFPs) through personalized 1:1 sessions.

For existing Betterment customers, there is a limited-time offer to upgrade to the new Premium plan at no extra cost for the first 60 days. This initiative allows current clients to experience the enhanced features and benefits before committing financially. Current Premium customers also have the option to stick with their existing plan or upgrade to take advantage of the new services tailored to their specific financial goals.