The Offer
Direct link to offer (do not share in this thread, share in this linked thread instead)
- Betterment is offering both parties a $150 bonus when the new user uses a referral link and opens a Betterment individual automated investing account and completes a qualifying deposit of at least $100 into the new investing account.
The Fine Print
- To qualify for the RAF Investing Bonus, you must (1) open a Betterment individual automated investing account (an “New Investing Account”), and (2) complete a Qualifying Deposit of at least $100 into your New Investing Account within the Referral Period.
- If you successfully complete a Qualifying Deposit into a New Investing Account, Betterment will provide a $150 investing bonus into that account (the “RAF Investing Bonus”) approximately 30 days after the date of your Qualifying Deposit (the “Reward Date”), provided that your New Investing Account maintains a balance of at least $100 during that period.
- Deposits into a self-directed investing account, health savings account, 401(k) account, joint or trust automated investing account, Cash Reserve account, or Betterment Checking account are not Qualifying Deposits for purposes of the RAF Investing Bonus
- . In addition, this offer is not available to Betterment Advisor Solutions advised clients or clients receiving Premium Services.
- There are certain limitations on the RAF Investing Bonus that you should be aware of:
- A non-taxable fee will apply to your New Investing Account as payment for services from Betterment if, for any reason, you transfer or distribute some or all of the funds in your New Investing Account such that the balance falls below $250 (i.e., the $100 minimum Qualifying Deposit plus the $150 RAF Investing Bonus), including internal transfers to another Betterment investing account or a Betterment Cash Reserve account, at any time prior to the end of three (3) years after the Reward Date (the “Holding Period” and such fee, the “Early Removal Fee”).
- The Early Removal Fee is separate from and in addition to any ACATs fees and investment management fees to which your account is subject. The Early Removal Fee will equal the amount by which the withdrawal or transfer reduces your account balance below $250, taking into account any subsequent deposits, inbound transfers, and market gains after the Reward Date; provided that, for any single withdrawal or transfer, the Early Removal Fee will not exceed 80% of the amount withdrawn or transferred, and across all withdrawals or transfers during the Holding Period, the aggregate amount of the Early Removal Fee will not exceed $150.
- For example, if you make a Qualifying Deposit of $100, receive a $150 Receiver Investing Bonus, and then withdraw $200 during the Holding Period, your remaining account balance would be $50, and you would be charged the full $150 Early Removal Fee.
- Alternatively, if you withdraw $151 during the Holding Period, your remaining account balance would be $99. Because the Early Removal Fee may not exceed 80% of the amount withdrawn, the Early Removal Fee would be $120.80.
- If you make multiple withdrawals or transfers out of your New Investing Account Account during the Holding Period, each withdrawal may be subject to an Early Removal Fee, subject to the conditions described above.
- Any distributions from your New Investing Account will potentially implicate the Early Removal Fee, including distributions that may be required by law such as required minimum distributions.
- Transferring between goals in an Eligible Account prior to the end of the Holding Period will not result in an Early Removal Fee.
- In no event will the aggregate amount of the Early Removal Fee exceed the amount of the Betterment Investing Reward received.
Betterment processes and treats the RAF Investing Bonus as interest earned by the receiving account for tax reporting purposes. The interest amount is based on a percentage of deposits made into the account. The interest earned by a receiving account that is an IRA will not be subject to, or impact, the maximum annual dollar contribution limit or the maximum annual deductible amount. Please note that the RAF Investing Bonus may be taxable income if you convert a Traditional IRA contribution to a Roth IRA and may be reflected on your tax forms as such. Betterment does not provide tax advice. Please consult a tax advisor.
Our Verdict
This is the automated investing account, that comes with a $5 monthly fee or 0.25% annually. I don’t think I’d use this account for actual investing but might be useful for the bonus hold period is three years so fees will be more than the bonus. Not worth it and won’t be added to best brokerage bonus page. There is also a $100 bonus for the self directed investing account. Do not share your referrals in the comments below, share in this linked thread instead.
Hat tip to reader Tony
