Both Ally Invest and Betterment offer customer service and support, but they differ in terms of the level of support and the channels available to customers.
Ally Invest provides customer support through phone, email, and live chat. They also offer a comprehensive online help center that includes a range of articles, videos, and frequently asked questions (FAQs) to help customers find answers to their questions.
Betterment offers customer support through email and phone, and they also have a live chat feature available during business hours. They also have an extensive online help center that includes articles, tutorials, and FAQs to help customers find answers to their questions. Additionally, Betterment offers premium customer support through its Betterment Premium service, which provides access to a certified financial planner.
Both Ally Invest and Betterment offer good customer support, but Ally Invest offers more channels for support and is available 24/7. Betterment offers a premium customer support service that provides access to a certified financial planner, which may be valuable for investors who need more personalized advice.
Betterment is a robo-advisor platform that is designed to offer automated investing services. Here are some of the features that Betterment offers:
Ally Invest does not offer a robo-advisor service, but they do offer a self-directed brokerage account that allows investors to trade stocks, ETFs, options, and mutual funds. Investors who use Ally Invest can use their own research and analysis to select their own investments, or they can use third-party research tools to help them make investment decisions.
Ally Invest and Betterment have different fee structures and pricing models.
Ally Invest charges a flat fee of $4.95 per trade for stocks, ETFs, and options. The platform does not charge any annual account fees or inactivity fees. The Ally Invest Managed Portfolios program charges an annual advisory fee of 0.30% to 0.70%, depending on the portfolio strategy chosen.
Betterment charges an annual advisory fee based on the investor’s account balance. The fee ranges from 0.25% to 0.40% of the account balance, depending on the account balance and the type of account. Betterment also charges fees for its premium services, including access to a certified financial planner and the ability to make trades without a transaction fee.
Tax-Loss Harvesting
Betterment offers tax-loss harvesting as a feature for its customers. Tax-loss harvesting is a strategy that helps investors reduce their tax liability by selling lost investments to offset gains and reduce taxable income.
Here’s how it works with Betterment:
- Betterment’s algorithm monitors the investor’s portfolio for potential losses.
- If the algorithm identifies an investment that has declined in value, it sells the investment and uses the proceeds to purchase a similar investment that maintains the same asset allocation.
- The investor can use the loss to offset gains in other investments, which reduces their tax liability.
Betterment’s tax-loss harvesting feature is available to all customers who have a taxable account with a balance of $50,000 or more. The feature is included in Betterment’s annual advisory fee, and there are no additional fees for using the service.
Ally Invest does not offer tax-loss harvesting as a feature for its customers. However, Ally Invest does offer a range of tax-advantaged investment accounts, including traditional and Roth IRAs, that can help investors reduce their tax liability over the long term.
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Ally vs Betterment IRA
When it comes to IRA accounts, both Ally Invest and Betterment offer options for traditional and Roth IRAs, as well as SEP and SIMPLE IRAs for self-employed individuals.
Ally Invest offers a range of low-cost investment options, including stocks, ETFs, and mutual funds, with no minimum investment requirements for IRA accounts. The platform also offers a range of educational resources, as well as retirement planning tools and calculators to help investors plan for their future.
Betterment’s IRA accounts are fully automated, with investment portfolios tailored to the investor’s risk tolerance and retirement goals. The platform also offers advanced tax optimization strategies, including tax-loss harvesting and asset location, to help maximize after-tax returns. Betterment’s annual advisory fees for IRA accounts are 0.25% for its digital platform and 0.40% for its premium plan, which provides access to financial advisors.
betterment vs ally high yield savings
When it comes to high-yield savings accounts, both Betterment and Ally offer competitive interest rates and no monthly maintenance fees.
Betterment’s Cash Reserve account offers a high-yield savings account with a current APY of 0.40%, with no minimum balance requirements or fees. The account is FDIC-insured up to $1 million, and funds are swept to partner banks to provide additional insurance coverage. Additionally, Betterment offers a checking account that can be linked to the Cash Reserve account for easy transfers and bill payments.
Ally Bank also offers a high-yield savings account with a current APY of 0.50%, with no minimum balance requirements or fees. The account is FDIC-insured up to $250,000 per depositor, per account ownership category. Ally Bank also offers a range of other banking products, including checking accounts, CDs, and money market accounts.
Ally vs Wealthfront
Frequently Asked Questions (F&Qs)
Which Has the Best Investment Options?
Ally Invest has a wider range of investment options than Betterment, and it may be a better fit for investors who want to actively manage their portfolios and have more control over their investment decisions. However, Betterment’s focus on ETFs and algorithmic investment management may be a good fit for investors who prefer a more passive investment approach.
Which Offers the Best Customer Service?
if you are looking for personalized customer support and access to financial advisors, Betterment may be the better option. However, if you prefer to manage your investments independently and rely on online resources for support, Ally Invest may be a good fit.
Which is the Most Affordable?
For active trader who prefers to manage their own investments, Ally Invest may be the more affordable option. However, if you are looking for a more automated investment approach and value tax optimization, Betterment’s fees may be worth it.
