Complaints

The complaint text that is displayed might not represent all complaints filed with BBB. Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business.

• Initial Complaint

  Date:06/10/2025

  Type:Product Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I deposited a flexible spending account check from my FSA via mobile deposit $2,396.22. The only confirmation I received was that my deposit has been initiated. It wasn't until hours later that I could see the deposit in my account and the availability of the funds date. According to Betterment account opening details, I should have received confirmation of the deposit, and I should have known the date it would be available prior to completing the deposit. I contacted customer service, and the *** was unable to explain to me why this happened. I asked to speak with a manager and was told there is NO OPTION to have a manager call me, my ONLY option is to have my concern heard and responded to via email. This is completely unacceptable to only be able to send and receive emails when needing to speak with a supervisor. There is no reason for a check from my FSA to be held for several days.

  

  Business Response

  Date: 06/16/2025

  Dear *** *****, 

  Thank you for contacting Betterment LLC (Betterment or the Firm) via the ************************* (BBB). We appreciate the opportunity to address your concerns regarding the mobile check deposit to your Betterment Checking account and the lack of phone support.
  
  On June 9, 2025, you deposited a Flexible Spending Account (FSA) check for $2,396.22 via mobile check deposit to your Betterment Checking account. At the time of submission, the deposit was marked as initiated, which confirms that it had been received for processing. Confirmation of the deposit status and estimated funds availability was subsequently made available in the Betterment mobile app and via email. The availability date was provided as June 16, 2025. This is consistent with our standard mobile check deposit timelines, which may include a hold period of up to seven business days depending on the nature and amount of the deposit.
  
  We understand you were dissatisfied with the lack of immediate clarity regarding the funds' availability and sought to escalate your concern by speaking with a supervisor. As the agent communicated at the time, escalations to our Operations team are typically handled via email to ensure secure and documented communication. We regret any frustration this caused, especially given your preference for a phone conversation to discuss sensitive account information.
  
  Shortly after your initial outreach, a member of our *************** Team responded to your inquiry via email with additional context about our mobile check deposit policy. Your request to escalate the issue to our Operations team was also honored, and we followed up accordingly.
  
  We appreciate your feedback and are sorry that your experience did not meet your expectations. Betterment is committed to delivering a high level of transparency and customer support. Your experience has been shared internally to help improve our service going forward.
  
  Betterment LLC
  
  cc: Better Business Bureau

  
  

• Initial Complaint

  Date:05/20/2025

  Type:Sales and Advertising Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I recently opened a checking account with **********************. I had to report a withdrawal that I did not recognize. As a result of this I also asked for a supervisor call back. The day before the money was supposed to be placed back in my account ********************** put a restriction on my account and I couldnt access anything. I called on 5/20/2025 spoke to a representative and basically got no resolution. I received an email from someone named *** asking about a deposit/ stop payment. Turns out *** did not properly state why he was reaching out, he was incorrect in asking about a deposit and/or stop payment it was the withdrawal that I had already given a through explanation for when I called about this initially. I explained that I dont do business regarding my personal finances over email and requested a call if there are questions. Despite call *** multiple times this person has not returned my call or responded to my email that he will call me.

  

  Business Response

  Date: 05/28/2025

  Thank you for contacting Betterment LLC (Betterment or the Firm) via the Better Business Bureau (BBB) regarding your Betterment Checking Account. We are sorry to hear that your experience on our platform did not meet your expectations. 
  
  On May 2, 2025, a withdrawal in the amount of $2,762.06 was initiated from your Betterment Checking account. On May 14, 2025, you contacted Betterment Support to report this transaction as unauthorized. During your call and subsequent interactions, you expressed a strong preference for follow-up via phone rather than email and raised concerns about delays in communication. We understand the importance of timely, clear updates and regret that your expectations were not met in this instance.
  
  After receiving your report, our team escalated the matter to **** bank, our partner institution that processes all ACH transactions for Betterment Checking accounts. On May 16, 2025, **** completed its investigation and confirmed that an error had occurred. A credit in the full amount was issued to your account that same day. During this time, your account was temporarily restricted as a precaution while the matter was under review.
  
  Per our suggestion and to address any security concerns, you updated your login credentials on May 20, 2025, and your account access was restored. Our team followed up to confirm that the credit had been applied and to offer additional support if needed.
  
  While we are pleased that the issue was resolved and the funds returned to your account, we recognize there were aspects of the experience that could have been clearer. The processing of the dispute followed standard procedures through our banking partner, but we understand that the communication did not fully align with your expectations. We appreciate your feedback and are using it to assess how we handle time-sensitive matters, particularly when a customer requests a specific mode of communication.
  
  If there is anything further we can assist you with, please dont hesitate to contact us. 
  
  Betterment *************
  
  

  Customer Answer

  Date: 06/10/2025

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID# ********, and have determined that my complaint has NOT been resolved because:

  Betterment offers no opportunity to speak with anyone other than a customer service ***resentative. If the *** is unable to assist the only option is for the *** to open a ticket which then someone will reach out to you via email. Betterment expects their customers to converse via email regarding personal financial matters which is unacceptable and not a secure way of communicating with any financial institution 

   

   

   

   

  In order for the BBB to appropriately process your response, you MUST answer the question above.

  
  Sincerely,
  
  ******** *****
  
  
  
  
   
  

  

  Business Response

  Date: 06/16/2025

  Dear *** *****, 

  Thank you for sharing your concerns regarding Betterments communication protocols. We appreciate the opportunity to address your feedback.
  
  At Betterment, the security and privacy of our customers financial information is our highest priority. While we understand the desire to speak directly with a representative beyond our Customer Experience (CX) team, our current process is designed to ensure that all inquiries are handled efficiently and securely. When further escalation is needed, our CX team opens a ticket so the appropriate internal team can review the matter and respond via secure email.
  
  We recognize that email communication may not always feel ideal for sensitive topics. However, our responses are sent from secure systems and in compliance with industry standards, allowing us to provide detailed and documented support tailored to each case.
  
  We are committed to improving your experience and will ensure your concerns are shared with the appropriate teams. 

  Sincerely,
  Betterment LLC
  cc: Better Business Bureau

  
  

• Initial Complaint

  Date:05/19/2025

  Type:Billing Issues
  Status:

  ResolvedMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  Betterment recently acquired ******** a subsidiary of *************************. During this time my ******** account was closed and transferred to Betterment. I had a **** *** account with ******** valued at $38,000-$40,000 depending on the day.I claimed my Betterment account and it shows that I only have one account with them valued at $0.67. I reached out twice to their customer support email address wondering how the process works with transferring retirement accounts from Ellevest and I am curious where my money is since I no longer have access to my ******** account. On both occasions I received robo responses that did not address my issue, with no attempts to follow up with me. I am scared that my retirement investment was lost with Betterments acquisition of ******** and was reassurance that my money is safe.Thank you!

  

  Business Response

  Date: 05/23/2025

  Thank you for contacting Betterment LLC (Betterment or the Firm) via the Better Business Bureau (BBB) regarding the status of your **** *** assets following Betterments acquisition of ********. We are sorry to hear that your experience did not meet your expectations, and we appreciate the opportunity to provide clarification.

  As part of the transition process, account claim emails were sent to former ******** clients, including yourself. These emails contained instructions on how to claim your new Betterment account and initiate the transfer of your retirement assets. 

  On May 17, 2025, you reached out to our Customer Experience team inquiring about the location of your **** *** funds, previously held with ********. You noted that after claiming your Betterment account, it reflected a balance of only $0.67.

  In response, on May 19, 2025, a member of our team informed you that if your funds were not visible within your Betterment account, we recommend reaching out to ************************* Custody Solution for Ellevest accounts that were not moved to Betterment. Their support team can be contacted at gs-*********************** for assistance in locating your funds. 

  We have not received any follow-up communication from you since that guidance was provided. We apologize that we were unable to offer more specific information at that time. Please know that we remain available and committed to supporting you should you need further assistance.
  
  Betterment LLC
  

  
  

  Customer Answer

  Date: 05/25/2025

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and I will follow up with *******************************************. It is still unknown where my money is and Betterment needs to do better in timely and human responses to help requests. Considering they acquired another financial institution you would think they would take the prospect of financial custodianship more seriously. This matter has not been resolved as I still do not know where my money resides. If a solution cannot be found by contacting ************************* I will file an additional complaint.
  
  Sincerely,
  
  ***** **********
  
  
  
   
  
  

• Initial Complaint

  Date:05/07/2025

  Type:Order Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I purchased a bond fund on Betterment's website on Apr 1, 2025 and Apr 2, 2025. The bonds in the fund paid dividends on 5/6/2025 but there is no record of the dividends being paid into my account.

  

  Business Response

  Date: 05/20/2025

  Thank you for contacting Betterment LLC (Betterment or the Firm) via the ************************* (BBB) regarding your dividend payment. We are sorry to hear that your experience on our platform did not meet your expectations. 

  On April 1, 2025, you invested in the BlackRock Target Income Portfolio. On May 6, 2025, certain funds within that portfolio paid dividends. Your Betterment account reflects the receipt of those dividends, which were automatically reinvested on May 8th and 9th, consistent with your Betterment account agreement. ********************** provided confirmation statements, which are posted in the Betterment online interface and reflect the payment of dividends on May 6th and the reinvestment of such dividends on May 8th and 9th.  Your May account statement, which is the official record of your holdings and transactions in the account, will also reflect these transactions.  As you discussed with a Betterment customer service representative on May 7th, dividend reinvestment transactions can take up to three business days to appear in your account through the online interface.   

  If you have any further questions or need additional assistance, please do not hesitate to reach out to us. We are here to help.
  
  

  
  

• Initial Complaint

  Date:04/10/2025

  Type:Order Issues
  Status:

  ResolvedMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  A check for a pension rollover from ******** was accidentally sent to Betterment when it was supposed to go to ****** Betterment will not send the check back to me.

  

  Business Response

  Date: 04/22/2025

  Thank you for contacting Betterment LLC (Betterment or the Firm) via the Better Business Bureau (BBB) regarding your *** ****** We are sorry to hear that your experience on our platform did not meet your expectations. 

  On March 10, 2025, we received a check for your benefit at our *** lockbox and, consistent with existing processes, the check was deposited. 
  
  Based on your conversation with our Operations Team, we understand that this check was sent to Betterment in error. On March 17, 2025, we confirmed via email that a new check had been mailed to the address you requested. We also noted that the estimated delivery date would be April 1, 2025. As checks are sent via **************************** (****) standard mail, we are unfortunately unable to provide tracking details.
  
  You contacted us on April 1, 2025, to report that the check had not arrived. In response, an Operations Manager confirmed that a replacement check would be issued on April 10, 2025. This date was selected to allow additional time for the original check to potentially arrive, as in many cases, original checks are delayed but ultimately deliveredrendering reissued checks uncashed.
  
  However, we expedited the process and reissued a new check on April 9, 2025, to the address you provided.
  
  We sincerely apologize for any inconvenience this may have caused and appreciate your patience throughout this process.
  
  
  
  Betterment LLC
  

  
  

  Customer Answer

  Date: 04/22/2025

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********.  The issue has finally been resolved, but the business should have been more responsive, made better efforts to resolve in a timely manner, and resolve without constant follow up by me.  It took contacting many complaint organizations to get to this point and the business should review their customer service processes.
  
  Sincerely,
  
  ****** ******
  
  
  
   
  
  

• Initial Complaint

  Date:04/09/2025

  Type:Billing Issues
  Status:

  ResolvedMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  On 07 April 2025, I initiated a withdrawal from my Betterment account to an external bank account. Prior to the withdrawal, I had successfully linked this external account to my ********************** account by verifying two micro deposits made by Betterment. Later on 07 Apr, I received an email from Betterment informing me that my electronic transfer of funds to the linked external account was put on hold because they could not verify that I was the owner of the external account. ********************** asked me to submit documents to verify my ownership and suggested a conference call with the external bank may be needed.What's the point of successfully linking an external account by verification of microdeposits? If Betterment believes this is not a valid method to identify ownership of an external account, why do they offer this service? I believe the true reason could be that Betterment did not want me to transfer funds to a competitor bank with a better interest rate. This is deceptive business practice. My funds did not earn interest while they were put on hold by Betterment.

  

  Business Response

  Date: 04/23/2025

  Thank you for contacting Betterment LLC (Betterment or the Firm) via the Better Business Bureau (BBB) regarding your withdrawal request. We are sorry to hear that your experience on our platform did not meet your expectations. 
  
  On April 7, 2025, you initiated a $25,000 withdrawal from your Betterment ************ account to your account at ******************* & Trust Company ending in ****. While this account was previously linked using micro-deposit verification, that method confirms access to the account but not ownership. Because of this, we sent you an automated email requesting additional documentation, such as a photo ID and a recent bank statement, to help us verify that the account belongs to you. For certain transactionsespecially those involving larger amountswe may request additional documentation to ensure the funds are being sent to an account that belongs to you. This is part of our effort to protect your account and comply with financial regulations.
  
  To avoid delays, the email also lets you know that the fastest way to process the withdrawal would be to redirect the funds to your already verified account at ******************** ending in ****.
  
  We appreciate your prompt response on April 8, 2025, to have the funds sent to the ******************** account. Later that same day, a member of our Operations team confirmed the redirection and sent the funds as requested.
  
  We want to be clearBetterment has no incentive to restrict where you choose to transfer your money, including to another financial institution. The hold on your transaction was solely due to the need for ownership verification, not because of the destination of the funds.
  
  We understand that this process may have been inconvenient, and we truly appreciate your patience and cooperation. If you have any questions or need further support, were here to help.
  
  
  Betterment LLC
  
  

  Customer Answer

  Date: 04/23/2025

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID# ********, and have determined that my complaint has NOT been resolved because:

  Betterment never informed me that the method of micro-deposit verification confirms access to the account but not ownership. Furthermore, Betterment never asked for photo ID or additional documentation when I linked an external account at the time of opening my Betterment account. I am requesting Betterment provide a 0.50% APY boost for 6 months for the entire current balance of my account. 

   

   

   

   

  In order for the BBB to appropriately process your response, you MUST answer the question above.

  
  Sincerely,
  
  ****** ********
  
  
  
  
   
  

  

  Business Response

  Date: 05/01/2025

  Dear *** ********************* Thank you for reaching out. Were sorry to hear that our initial response didnt meet your expectations.

  To protect our clients and comply with regulatory obligations, Betterment is required to collect and verify certain information.  We understand this may be an inconvenience for withdrawals, which is why we disclose our timelines for processing them in agreements and through our Help Center.  In particular, we disclose that withdrawals from a ************ account typically take 1-2 business days, but can take longer.  Here, your request was made on April 7th and we were able, based on your quick response to our request for additional information, to process your withdrawal on April 8th. We believe this one day processing is reasonable and consistent with industry practice and our disclosures.  We therefore believe compensation is not warranted.

  That said, we value you as a Betterment customer and as a gesture of goodwill, weve applied a 0.25% APY boost to your ************ account for the next three months.

  If theres anything else we can assist you with, please dont hesitate to reach out.

  Betterment LLC

  Customer Answer

  Date: 05/02/2025

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me and the matter has been resolved.
  
  Sincerely,
  
  ****** ********
  
  
  
   
  
  

• Initial Complaint

  Date:04/09/2025

  Type:Product Issues
  Status:

  ResolvedMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I am filing this complaint due to Betterments failure to address and resolve an issue related to their ************ referral ************ part of their referral program, I earned an APY boost for referring a friend. Each successful referral is supposed to provide a 0.50% APY boost for a period of three months. However, one of my boosts was only applied for a single day (from 02/07/2025 to 02/08/2025)significantly shorter than promised.I contacted Betterment support multiple times, providing clear evidence, including screenshots. While their representatives acknowledged my current promotion dates, they consistently ignored the issue regarding the one-day reward. Despite repeated follow-ups, they have failed to respond to my last emails or take any corrective action.I am requesting that Betterment adjust my current APY boost period to include the full three-month duration that I should have received based on this referral.This complaint is being submitted due to Betterments lack of response, failure to address a clearly documented issue, and failure to deliver on the terms of their own promotion.Desired Outcome:Extend my current ************ APY boost by three months to reflect the full benefit earned from my referral.Thank you for your help in resolving this matter.

  

  Business Response

  Date: 04/21/2025

  Thank you for contacting Betterment LLC (Betterment or the Firm) via the Better Business Bureau (BBB) regarding our ************ referral promotion. We are sorry to hear that your experience on our platform did not meet your expectations. 
  
  You initially contacted our team on April 4, 2024, to inquire about the duration of your most recent referral boost. On the same day, a member of our support team responded, confirming that your current *** boost began on February 9, 2025, and will end on May 12, 2025. We recognize that our explanation at the time did not fully clarify why one of your referral boosts appeared to apply for just a single day.
  
  To clarify, as outlined in the referral program's Terms and Conditions, the ************ APY boost is limited to a maximum of 180 consecutive days. Once this maximum is reached, additional referral boosts may be truncated or split, depending on the remaining available days. In your case, one referral resulted in a 1-day boost due to this limitation, with the remaining benefit continuing from February 9 to May 12, 2025.
  
  On April 11, a second ***** provided a more detailed explanation, along with a copy of the full Terms and Conditions for your reference. At this time, based on the terms of the promotion and the benefits already applied to your account, no further APY adjustments can be made. However, your feedback is invaluable, and we are working to improve the clarity of our communications moving forward.
  
  We sincerely apologize for any confusion and for the delay in providing a comprehensive and timely explanation. Thank you again for your patience and for being a valued Betterment customer.
  
  
  ********************** LLC
  
  

  Customer Answer

  Date: 04/22/2025

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me and the matter has been resolved.
  
  Sincerely,
  
  ****** ***
  
  
  
   
  
  

• Initial Complaint

  Date:02/18/2025

  Type:Billing Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I have a Cash Account at ************************** in which I use to do banking. I recently added an external bank account so that I could do transfers between the two institutions.I connected the external the bank account through ********************** by registering the account on ********************** and going through the process of confirming micro deposits placed by Betterment into my external account for approval. Once this was completed I attempted to process a withdraw of $300,000 to my external bank account and a second withdraw of $300,000 to another registered external account. I was informed by email that the withdraws would be done in 1-2 business days and have included a copy of the email as proof.However when I attempted to do this the funds were placed on hold for over ten days and the withdraws were not completed. I was told that they could not complete the transfer because the external bank account did not qualify, even though Betterment had approved the bank as previously stated. They also informed me that they could not remove the hold and that I would have to wait until their computer system released the hold.During this hold period not only were my funds not available to me, they were not collecting interest, which turned out tome very costly considering the deposit amounts.This issue has been very frustrating & costly and I received no help from Betterment in resolving this issue. I am requesting that Betterment credit my account for the ten days of interest I did not receive for the two $300,000 transfers that they held without my permission.**** **********

  

  Business Response

  Date: 03/03/2025

  Dear *** ************************ you for contacting Betterment LLC (Betterment or the Firm) via the Better Business Bureau (BBB) regarding your recent withdrawal request. Were sorry to hear that your experience on our platform did not meet your expectations.
  
  On February 5, 2025, you initiated a $300,000 deposit into your ****************** account from your linked bank account, *********** N.A. (ending in ****). The following day, on February 6, 2025, you initiated a withdrawal from the ****************** account to a newly linked bank account, ***************************** (ending in ****). This triggered an automatic email requesting ownership verification for the new bank account, instructing you to contact Betterment Customer Experience (CX) to arrange a conference call with the bank. However, you opted to route the funds back to your source account, *********** N.A. (ending in ****), as it was the fastest option.
  
  That same day, you initiated a second $300,000 deposit into your ****************** account from *********** N.A. (ending in ****).
  
  On February 10, 2025, you submitted a second withdrawal request of $299,999.99 to *********** N.A. (ending in ****). On February 15, 2025, you reached out to inquire about the status of both withdrawal requests, as neither had been completed. A Betterment Operations team member informed you that the funds were subject to a five-day hold due to the recent large deposits.
  
  Your withdrawal requests were successfully processed on February 17, 2025. As a goodwill gesture, Betterment Operations offered you a 0.25% boost to your ************ account for the next 90 days.
  
  You requested reimbursement for interest lost during the hold period. However, as we explained via email, funds in transitwhether moving to or from a third-party bankdo not earn interest. Likewise, funds placed on hold for review will not accrue interest during that time. More details can be found in our [************ Terms and Conditions, Section 9]. While we understand this may be frustrating, we are unable to provide additional compensation for lost earnings. 
  
  The delay in your withdrawal was due to a combination of multiple large deposits and withdrawals within a short period of time, the required bank verification for your newly linked account, and the timing of a bank holiday (Presidents Day).
  
  We understand this situation may have caused inconvenience. If theres anything else we can clarify or assist with, please dont hesitate to reach out.
  
  Betterment LLC
  

• Initial Complaint

  Date:12/17/2024

  Type:Product Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I am writing to formally address the unresolved issue regarding the interest loss associated with the handling of my withdrawal request and to request a fair resolution. Below is a summary of the events and my concerns:Timeline of Events:November 11, 2024: I initiated a withdrawal of $258,327.79 from my Betterment ************ account.November 19, 2024: The receiving bank issued a return code, and the funds remained held within Betterment.November 20, 2024: The funds were returned and deposited back into my Betterment ************ account.Concerns and Issues:Interest Loss:During the period when my funds were held within Betterment and not transferred, I incurred an approximate loss of $400 in interest. Since the funds were retained by Betterment due to security protocols, I believe Betterment is responsible for reimbursing the lost interest.Proposed Resolution Is Insufficient:The suggested three-month rate boost does not adequately compensate for the lost interest.The enhancement rate for the boost has not been disclosed, and based on my previous experience with a similar boost, it does not sufficiently offset the interest I lost.The resolution requires an extended timeline for recovery, further delaying a fair outcome.Delayed and Inconsistent Communication:I have made multiple inquiries seeking clarification and resolution, yet responses have been delayed, and no proactive updates have been provided.Despite my repeated follow-ups, the responses have not directly addressed my concerns, creating further frustration and delays.

  

  Business Response

  Date: 01/02/2025

  Thank you for contacting Betterment LLC (Betterment or the Firm) via the Better Business Bureau (BBB) regarding your ************ withdrawal. We are sorry to hear that your experience on our platform did not meet your expectations. 

  On November 11, 2024, you initiated a full withdrawal from your ************ account. We understand the transfer was rejected by your external bank for exceeding their daily transfer limit. In addition, we placed a temporary hold on the withdrawal due to a recent deposit made into your account. This hold is part of our standard account security procedures to protect your account from identity theft. 

  These funds, however, were not eligible to earn interest while in transit (to the third party bank and back from the third party bank as a result of the rejection) nor were they eligible to earn interest while the transaction was being reviewed (i.e., on hold). The Betterment ************ Terms & Conditions make clear that [i]nterest will accrue on Deposit Account balances from the day funds are received and accepted by the ************ through the business day preceding the date of withdrawal from the ************. (Emphasis Added) Because these funds were on hold (consistent with your Betterment Client Agreement and the Betterment ************ Terms & Conditions) and not held at the applicable ************s, the Terms and Conditions make clear that no interest will be paid on the balance by the ************s. Nevertheless and as a courtesy, we offered a three-month rate boost on the remaining balance in your account. 

  We appreciate your understanding as we adhere to these necessary security protocols and we apologize for any inconvenience this may have caused.

  
  

  Customer Answer

  Date: 01/28/2025

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID# ********, and have determined that my complaint has NOT been resolved because:

  The reply from the business is not acceptable and the complaint is not resolved. The following is the reply to them.
  ***********************************************************-
  Thank you for your response and for the details provided regarding the hold and transit issues with my funds. I appreciate Betterment's efforts to maintain security measures; however, the situation resulted in a notable opportunity cost for me. The funds, while held and in transit due to administrative processes, were neither available for my use nor earning interest, which is a significant concern.
  I understand the security necessity but holding client funds without compensating for the financial impact is considerable. This practice shifted the burden of administrative processes onto me, affecting my financial planning. Therefore, I urge Betterment to reconsider its policies to align more closely with fair practices that acknowledge the financial implications for clients under such circumstances.
  Moreover, regarding the interest rate boost offered as a courtesy, I request clarification on its specifics. It is not clear whether this boost is an additional 0.1% or a more substantial 10%. Furthermore, it appears that the current boost I have was due to a promotional event rather than as compensation for this incident. Given the potential earnings lost during the period my funds were neither in transit nor earning interest, a detailed explanation of how this boost compares to my potential lost earnings would be highly appreciated.
  Could Betterment provide specific details on the nature of the boost and consider a more appropriate compensation for the financial impact caused by the hold and the lack of prior notification regarding transfer limits?
  Best,
  ******** ****

  
  Sincerely,
  
  ******** ****
  
  
  
  
   
  

  

  Business Response

  Date: 02/11/2025

  Thank you for reaching out to Betterment LLC (Betterment or the Firm) through the Better Business Bureau (BBB). We appreciate the opportunity to address your concerns regarding compensation for interest lost while your funds were in transit, and we understand how frustrating this situation has been for you.
  
  As previously mentioned, funds in transitwhether moving to or from a third-party bankdo not earn interest. Similarly, funds placed on hold for review will not accrue interest during that time. While we regret any inconvenience this may have caused, were unable to provide compensation for lost earnings.
  
  Regarding the interest rate boost, we had previously reached out for your approval to apply for an additional boost but did not receive confirmation at that time. However, as a goodwill gesture, we have applied a three-month interest rate boost to your ************* This boost will take effect once your current promotional rate boost ends on February 22, 2025.
  
  To clarify, this boost will add an extra 0.50% to whatever the variable APY is at the time. As of December 27, 2024, the current variable interest rate on Betterment ************ and cash goals is 4.00%*, though please note that APYs are subject to change.
  
  We also want to acknowledge your feedback regarding our policies. I have shared your concerns with our internal teams for review, as we continuously evaluate our policies to ensure they align with security, efficiency, and a positive customer experience. Your input is valuable in that process.
  
  I understand this may not fully resolve your concerns, and I truly regret any frustration this has caused. If theres anything else I can clarify or assist with, please dont hesitate to reach out.
  

• Initial Complaint

  Date:12/05/2024

  Type:Billing Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I have been calling and emailing Betterment because I have been trying to do a Hardship Withdrawal for the down payment on my very first home that I am scheduled to close on, on December 20, 2024... this is in 16 days. I have multiple tickets open and have been refused to speak to a supervisor. I don't know where else to turn. If my title company can't see the $5000 in my account soon, I will fail and lose my ******* money deposit. Please help

  

  Business Response

  Date: 12/19/2024

  Thank you for contacting Betterment LLC (Betterment or the Firm) via the Better Business Bureau (BBB) regarding your hardship withdrawal. We are sorry to hear that your experience on our platform did not meet your expectations. 

  You first reached out on 11/27/2024 via phone to our CX team regarding an error message you encountered while attempting to withdraw $5,300 from your 401k for a home purchase. The error message in the Betterment system stated that the amount exceeded 90% of your available balance, even though you believed you were eligible for a hardship distribution. The representative confirmed that you are fully vested, thus enabling you to withdraw the $5,300. This matter was then escalated to our 401k team for further investigation. We provided a secure link for you to send us a screenshot of the error. You were also advised to notify your HR department about the hardship distribution request to help expedite the processing.
  
  On 12/4/2024, you called our CX team to request an update and shared your frustration with response times and the lack of communication from our 401k support team. You also expressed concerns about your upcoming closing deadline on 12/20/2024. We provided you with a detailed explanation of the issue you were experiencing. The error was caused by the "90% rule," which triggers a notification when withdrawal amounts meet or exceed 90% of the available balance. This rule is in place to account for potential market fluctuations and associated fees. As you were fully vested in your plan, your withdrawal request for $5,250 was processed successfully and was expected to be completed within five business days following employer approval. The hardship distribution was finalized on 12/8/2024, and no further action is needed at this time.
  
  We understand your frustration and apologize that this policy and the wording on the platform caused confusion. Your feedback regarding these concerns has been escalated to our development team for consideration.