Betterment Premium is a fraction of what traditional financial advisors cost.
Traditional financial advisor fees vary, but cost an average of about 1.00%/year.
The annual advisory fee for Betterment Premium is 0.65% on the first $1M, which consists of a 0.25% Digital base fee and an additional 0.40% Premium fee. Eligible investing dollars greater than $1M are charged at a discounted rate of:
- $1–$2M: 0.15%
- $2M+: 0.10%
Premium benefits still apply, without the added cost, for dollars over $1M. Fees are calculated based on your daily invested balance in eligible automated investing accounts and assessed monthly. They are automatically deducted from your investing account. Only Betterment investing accounts are included in the fee calculation; balances in Checking, Cash Reserve, 401(k), HSA, and Self-Directed Investing accounts are excluded.
