Software · head to head
Betterment vs Venmo
The short version
- Only Venmo has a free tier, so it costs nothing to try first.
- Each has a real cost: Betterment digital automated investing charges $5 per month fee for accounts under $24,000 balance; Venmo instant transfer costs 1.75 percent with a minimum fee of 0.25 USD and a maximum of 25 USD, while the free standard transfer takes 1 to 3 business days
- They diverge on capability: Betterment covers Automated investing, Venmo covers Money transfers.
Where they differ
Only the attributes on which Betterment and Venmo actually diverge.
| Attribute | Betterment | Venmo |
|---|---|---|
| Starting price | $5/month | Free |
| Pricing model | subscription | free |
| Free tier | No | Yes |
| Founded | 2008 | 2009 |
Identical on both: platforms (Web, iOS, Android), user rating (Not yet rated), category (Unknown).
What each one covers
Drawn from each product's published feature list. An absence here means we hold no record of it - not that the product lacks it.
Only in Betterment
- Automated investing
- Retirement planning
- Financial advisory
- Goal tracking
- Investment accounts
Only in Venmo
- Money transfers
- Bill splitting
- Social feed
- Transaction history
- Debit cards
Both cover
- Bank accounts
- Web support
- IOS support
- Android support
What people use each for
The jobs each tool is most often brought in to do.
Betterment
- Small investors starting with automated investing at no minimum balancenot Venmo
- Fee-only digital wealth management for accounts under $24,000 via $5/month flat feenot Venmo
- Premium advisory access for high-net-worth individuals with $100,000+ balancenot Venmo
Venmo
- Splitting bills and reimbursing friends in the United Statesnot Betterment
- Accepting payments through a Venmo business profilenot Betterment
- Buying and holding cryptocurrency inside the payments appnot Betterment
Where each one falls short
Documented limitations, not opinions. Every one is a constraint you would hit in normal use.
Betterment
- Digital automated investing charges $5 per month fee for accounts under $24,000 balance
- Premium advisory service requires minimum balance of $100,000 in eligible investments
- Foreign transaction fees apply to checking account (though reimbursed after the fact)
- High-balance fee discounts only available above $1,000,000 account balance
Venmo
- Instant transfer costs 1.75 percent with a minimum fee of 0.25 USD and a maximum of 25 USD, while the free standard transfer takes 1 to 3 business days
- Sending money funded by a credit card carries a 3.00 percent fee
- Cryptocurrency fees are tiered by trade size, from 2.20 percent on purchases of 1.00 to 74.99 USD down to 1.50 percent above 1,000 USD
- Business profile payments cost 1.9 percent plus 0.10 USD, and Tap to Pay costs 2.29 percent plus 0.09 USD
Pricing, plan by plan
Betterment
$5/monthNo published plan breakdown. See the Betterment review.
Venmo
Free- FreeFree
- P2P transfers
- Bill splitting
- Mobile app
Which should you pick?
Choose Betterment if
- You need automated investing.
- You work on Web, iOS, Android.
- You also want retirement planning.
Choose Venmo if
- You need money transfers.
- You want to start without paying.
- You work on Web, IOS, Android.
- You also want bill splitting.
Questions people ask
- Is Betterment or Venmo better?
- Neither clearly leads. Betterment starts at $5/month and Venmo at Free, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
- Which is cheaper, Betterment or Venmo?
- Venmo has a free tier; the other does not. Paid plans start at $5/month for Betterment and Free for Venmo.
- Does Betterment or Venmo run on more platforms?
- Betterment runs on Web, iOS, Android. Venmo runs on Web, IOS, Android.
- Can I use Venmo for free?
- Yes. Venmo has a free tier, so you can try it without paying. Betterment starts at $5/month.
- What is Betterment best used for?
- Betterment is most often used for small investors starting with automated investing at no minimum balance, fee-only digital wealth management for accounts under $24,000 via $5/month flat fee, premium advisory access for high-net-worth individuals with $100,000+ balance. Of those, small investors starting with automated investing at no minimum balance and fee-only digital wealth management for accounts under $24,000 via $5/month flat fee are not what Venmo is typically brought in for.
- What can Betterment do that Venmo cannot?
- Betterment covers Automated investing, Retirement planning, Financial advisory, Goal tracking. Venmo covers Money transfers, Bill splitting, Social feed, Transaction history. Both handle Bank accounts, Web support, IOS support, Android support.