How are account management fees assessed following my ACATS transfer out of Betterment? (2024)

FAQs

How are account management fees assessed following my ACATS transfer out of Betterment? ›

Betterment will collect any accrued management fees from the fractional share liquidation, then send the remaining cash proceeds to the receiving firm via ACATS.

Full or Partial outgoing account transfers (aka ACATs) from our Invest accounts are applicable to a $100 ACAT fee. You can view the full Invest Fee Schedule (effective as of 05/01/24 unless otherwise noted) at any time.

We charge a flat fee of $75 for each investing account transfer out of Betterment. There is no fee to withdraw funds to your linked checking account.

Low fees: Betterment offers multiple portfolio options, has a low minimum investment requirement, and charges a very reasonable annual management fee of just 0.25% for those who qualify. Otherwise, it's $4 per month.

Withdrawals. Once in your mobile app, choose the goal you would like to withdraw funds from and select Withdrawal from the Overview tab. Withdrawals generally take about 3-4 business days to process.

How to avoid ACAT fees. There are some ways around ACAT fees. Brokerage firms generally don't charge you for withdrawing cash and then closing your account. That means you could liquidate your portfolio and then simply withdraw the cash and move it to a new firm.

From R 1 000 001 to R 1 357 000, the transfer duty is calculated at 3% of the value above R 1 000 000. From R 1 375 001 to R 1 925 000, the transfer duty is calculated at 6% on the value above R 1 375 000 PLUS a flat rate of R 11 250.

Is Betterment Worth It? Betterment can be worth it if you want to help build and manage your investment portfolio without paying the full cost of a human financial advisor. A human advisor could charge 1% or more per year, roughly four times Betterment's robo-advisor fee.

In-kind transfers from Betterment to another provider can only be executed via the ACATS system. However, ACATS transfers may not be supported in all cases.

From a web browser: Log in and select Settings in the navigation bar then Pricing. Here you will see the pricing for each of your Betterment accounts.

What are the cons of Betterment? ›

We do not have fees for accounts with a $0 balance, so you can still keep your account open without penalty. If your total Betterment investing balance is below $20,000 and you do not have a recurring deposit of $250/mo or more, Betterment charges $4 per month.

Management fees are fees paid to professionals entrusted with managing investments on a client's behalf. Typically determined as a percentage of the total assets under management (AUM), management fees can cover a variety of expenses, including portfolio management, advisory services, and administrative costs.

Betterment Securities charges a flat fee of $75 for each investing account transfer to another company (outbound transfer).

You can withdraw your money from Betterment at any time, without additional fees. We do not charge any trading fees or assess penalties for requested withdrawals or account closures. It's your money and is always accessible to you.

You may be subject to a 10% early withdrawal penalty unless an exception applies. You may have to make estimated tax payments. If your estimated payments and withholdings do not satisfy your tax obligations, you may be subject to IRS penalties.

Wire transfer fees generally range from $0 to about $50. The median wire transfer fee for the institutions we surveyed is $15 for incoming domestic wire transfers, $25 for outgoing domestic wire transfers, $15 for incoming international wire transfers and $45 for outgoing international wire transfers.

Types of wire transfer fees

Banks tend to charge different fees for the following types of wire transfers: Outgoing domestic: Generally between $15 and $30, this fee is charged to the sender. Incoming domestic: Generally between $0 and $15, this fee is charged to the recipient.

An ACAT transfer itself does not involve fees from either the delivering or receiving broker. However, some firms may charge miscellaneous fees like account termination or inactivity costs when closing an account.

Fidelity ACATS fees

Some brokers will charge a fee (sometimes up to $100) for outgoing asset transfers, in an effort to discourage their customers from leaving. Luckily, at Fidelity an Automated Account Transfer Service (ACATS) is free.