Personal Finance · head to head
Venmo vs Betterment
The short version
- Only Venmo has a free tier, so it costs nothing to try first.
- Each has a real cost: 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; Betterment digital automated investing charges $5 per month fee for accounts under $24,000 balance
- They diverge on capability: Venmo covers Money transfers, Betterment covers Automated investing.
Where they differ
Only the attributes on which Venmo and Betterment actually diverge.
| Attribute | Venmo | Betterment |
|---|---|---|
| Starting price | Free | $5/month |
| Pricing model | free | subscription |
| Free tier | Yes | No |
| Founded | 2009 | 2008 |
Identical on both: platforms (Web, IOS, Android), user rating (Not yet rated), category (Personal Finance).
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 Venmo
- Money transfers
- Bill splitting
- Social feed
- Transaction history
- Debit cards
Only in Betterment
- Automated investing
- Retirement planning
- Financial advisory
- Goal tracking
- Investment accounts
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.
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
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
Where each one falls short
Documented limitations, not opinions. Every one is a constraint you would hit in normal use.
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
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
Pricing, plan by plan
Venmo
Free- FreeFree
- P2P transfers
- Bill splitting
- Mobile app
Betterment
$5/monthNo published plan breakdown. See the Betterment review.
Which should you pick?
Choose Venmo if
- You need money transfers.
- You want to start without paying.
- You work on Web, IOS, Android.
- You also want bill splitting.
Choose Betterment if
- You need automated investing.
- You work on Web, iOS, Android.
- You also want retirement planning.
Questions people ask
- Is Venmo or Betterment better?
- Neither clearly leads. Venmo starts at Free and Betterment at $5/month, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
- Which is cheaper, Venmo or Betterment?
- Venmo has a free tier; the other does not. Paid plans start at Free for Venmo and $5/month for Betterment.
- Does Venmo or Betterment run on more platforms?
- Venmo runs on Web, IOS, Android. Betterment 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 Venmo best used for?
- Venmo is most often used for splitting bills and reimbursing friends in the united states, accepting payments through a venmo business profile, buying and holding cryptocurrency inside the payments app. Of those, splitting bills and reimbursing friends in the united states and accepting payments through a venmo business profile are not what Betterment is typically brought in for.
- What can Venmo do that Betterment cannot?
- Venmo covers Money transfers, Bill splitting, Social feed, Transaction history. Betterment covers Automated investing, Retirement planning, Financial advisory, Goal tracking. Both handle Bank accounts, Web support, IOS support, Android support.