Any investment service providers will allow you the ability to set automatic deposits from your bank, but the way Betterment does it caught my attention, and it’s quite unique from what I’ve seen before. On April 1st, the Betterment direct deposit said it deposited $250 into my investment account. They even sent a friendly reminder email the day before letting me know that they’re going to deposit the money.
I’ve set my investments on automatic, to deposit $250/month. My account now shows $1,248.90 at the end of week 2.
At first glance I thought they started investing into stocks instantly without taking any money out of my bank. However, when I dug around and looked at my portfolio, the $250 was not yet vested.
Under the Total Balance, it’s still $998.90.
I’ve set Wealthfront on automatic too, but on their system, it doesn’t show any deposited amount.
I’m not totally sure why Betterment does it this way, but for someone who doesn’t know what they’re doing, this can be very misleading.