How to Delete a Betterment Account

how to delete betterment account

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Money management comes easily to some people. However, 63% of Americans own one or more financial apps to make the process easier, although only 16% check them daily.  

Something a larger percent of the population can agree on is that to reach investment goals and achieve retirement plans, we need to manage our spending habits. However, accounting for money isn’t the easiest chore, especially if math does not come easy to you. But the hard truth is that you must account for and track every dollar to come out on top. 

Have you ever wondered how to delete a Betterment account that you don’t need anymore? Read our article below for more information: 

What is Betterment?

betterment

According to their page, Betterment is investing made better. It is an investment platform designed to make it easier for large and small investment accounts to thrive. 

There is no minimum amount, so you can put as little as $10 or as much as $10 million into your investment wallet. However, you will be a hands-off financial investor because Betterment offers fiduciary services. Fiduciary means that Betterment handles the investment opportunities that are best suited for you. 

By determining your risk tolerance and retirement plan, the online investment service will grow your money accordingly. Of course, you will pay a fee that is determined by the amount you invest. 

If it is less than $100,000, 0.25 percent goes to Betterment. On the other hand, investors with accounts worth more than $100,000 will pay 0.40 percent. You can get financial tips, too, although more than that (professional account optimization) may cost you. 

Something great about Betterment is how they tailor your financial portfolio to your requirement goals. Betterment aims to help you retire with more money to spend through the individual retirement account type of your choice. 

Betterment Account Types

There are many types of Betterment accounts. Let us explore them before we get to the deletion process of how to close Betterment accounts. 

  • Roth individual retirement accounts 
  • Traditional individual retirement accounts 
  • SEP individual retirement accounts 
  • Inherited individual retirement accounts
  • Individual taxable accounts 
  • Trust accounts 
  • Joint accounts 

If you want to add any of the aforementioned actions before hitting the delete button, locate the “menu” tab on the Betterment website. You will see “Add New,” which you should hit to create a new account.

But if you are using the mobile app, find “add account,” and you can choose any that appeal to you.

Betterment Account Losing Money 

A market drop always instills fear in investors, even though it is an inevitable aspect of long-term investment. This is one common reason users of the Betterment app decide to delete their betterment accounts. 

However, it is expected for the market to move in upward and downward motions. Otherwise, investment and trading in the financial markets wouldn’t be profitable. 

That is why you must answer some personal finance questions on the platform before you create an account. The time horizon for your retirement financial goals or other investment plans has been professionally and carefully determined by the financial advisor allocated to your account. 

Therefore, losses on your account are somewhat expected and perhaps indispensable for the sort of profits you want to make. 

On the other hand, you may want to delete your Betterment account because the email spamming is getting out of hand. The platform for investors seems to have embarked on a massive email campaign, perhaps because it is losing many customers, but at this point you may be tired of receiving them. 

These issues can easily be resolved. You need to mark the email as junk and subsequent ones will go straight to the trash bin. Some people also complain about the newsletters. If you find them unnecessary, you can easily unsubscribe by scrolling to the end of your screen to see the tab that boldly reads “unsubscribe.”

However, if you are closing the account for other reasons, keep reading to discover the short and straightforward process.  

Can I Take My Money Out of My Betterment Account?

Yes, you can take money out of your Betterment account and you should do it before you attempt to close or delete the account. Typically, you cannot delete your account without withdrawing your funds and Betterment will not charge you any fees for your withdrawal.  

Why Should You Delete Your Betterment Account?

Why Should You Delete Your Betterment Account?

Slow Trade Execution   

When you want to enter trades, Betterment will not execute it immediately. This is to continue the no-commission service. In periods of frenzied purchases, chances are you will be charged for priority service and Betterment wants to avoid that. 

Massive Email Campaigns   

The massive email campaigns have been off-putting for many users, especially those who are not active. If you have no use for your Betterment account, deleting it is not a bad idea. 

Why Shouldn’t You Delete Your Betterment Account?

No Minimum Requirement

Unlike many other investment apps, Betterment does not have a minimum requirement for investors. This means you can bring any amount to the platform and learn to grow your funds with it.    

It Reminds You of Your Goals

Another reason you may want to reconsider deleting your Betterment account is because it reminds you of your investment goals. If you aren’t meeting the essential requirement, the software alerts you after comparing your account with all the stocks you should invest in and how long it would take to hit that financial retirement target.

How to Delete a Betterment Account

delete application

For the record, if you delete your Betterment account, you consent to get rid of all the information the company has on you. You will eradicate every important detail, including your tax forms, which may be needed later. 

Therefore, it is usually recommended that you only close or deactivate your account instead of deleting it. Before deleting your account, it is worth noting that the Securities Investor Protection Corporation protects Betterment LLC. This means your funds are safe, even if things go south.

However, if you have other personal issues with Betterment, you may delete your account instead of deactivating it. The account of a deceased person may also be deleted by a loved one. 

To delete an old Betterment account, write a letter to [email protected] asking them to delete your account officially. Due to an increased fraudulence rate, leaving inactive accounts untended is unsafe. And since you believe you will not need the account again, you can request that it be deleted. 

Primarily, you need to use your email address (the one used to create the account). Without it, you may be unable to request the deletion and may merely be able to close the account. 

In your email to the Betterment support team, ensure you mention that you want every piece of information relating to the account history wiped. 

How to Close a Betterment Account?

closing bettrment account

We have established that there is a difference between closing your Betterment or any other account and deleting it. Deleting the account means there is no personal data of yours that you can use without your consent or knowledge. 

It completely clears your database. However, there is a downside – you may need some information in the future, but it will be inaccessible. To avoid situations like that, you can close the account. Or you can also close a specific account from the numerous ones that could be connected to your external financial accounts.

Want to close a Betterment account? Withdraw the money there and follow these steps: 

  • Locate “settings” after logging into the Betterment website.
  • You will see the “Accounts” tab next; look for three dots near the account you want to deactivate and hit the confirmation tab. 

Conclusion 

Now that you know how to delete a betterment account, you can free yourself of any commitment to the app or just deactivate an account you don’t want anymore. You also know how to close joint accounts on the app, which may be handy if you need to sever a partnership. 

Although Betterment has a bright future and relatively dated history, it pays to always be prepared even if you are not ready to do either of these things yet.

Make sure that you know how to withdraw your funds and do so before deleting the account!   

FAQs

1. Are there fees for deleting a betterment account? 

No, Betterment LLC will not charge you anything for closing or deleting your account. You will withdraw everything in said account, your full balance, before sending the deletion request.  

2. How to close a joint Betterment account? 

If you want to close a joint Betterment account, go to the account you want to close. Locate the three horizontal dots by the right side of your screen to find it, and choose “Close Account.”

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