Updated 2026-03-20
Schwab vs Betterment 401(k) Comparison
Compare Charles Schwab (#3, 9.1/10) and Betterment at Work (#20, 6.7/10) side by side across fees, ratings, features, and investment options.
Overall Comparison
| Feature | Schwab | Betterment |
|---|---|---|
| Overall Score | 9.1/10 | 6.7/10 |
| Rank | #3 | #20 |
| AUM | $8.5 trillion | $45 billion |
| Participants | 28 million | 400,000 |
| Plan Sponsors | 3,200+ | 1,500+ |
| Founded | 1971 | 2010 |
Ratings Comparison
| Category | Schwab | Betterment |
|---|---|---|
| Fees & Costs | 4.5/5 | 4.0/5 |
| Investment Options | 4.7/5 | 3.2/5 |
| Customer Service | 4.7/5 | 4.0/5 |
| Mobile App | 4.5/5 | 4.4/5 |
Fee Comparison
| Fee Type | Schwab | Betterment |
|---|---|---|
| Admin Fees | $0 - varies by plan | $150/month + $6/employee |
| Expense Ratios | 0.03% - 0.80% | 0.03% - 0.15% |
| Trading Fees | $0 for stocks/ETFs | $0 |
| Advisory Fees | 0% - 0.80% | Included in platform fee |
Schwab Strengths
- Excellent customer service with 24/7 support
- complete research and education tools
- Schwab Intelligent Portfolios (free robo-advisor)
- Strong integration after TD Ameritrade merger
Betterment Strengths
- Fully automated portfolio management
- Tax-loss harvesting and tax-smart strategies
- Clean, modern user interface
- Low-cost ETF portfolios
Rollover, Loans & Withdrawals
| Feature | Schwab | Betterment |
|---|---|---|
| Rollover Platform | Schwab.com | Betterment App |
| Loans Available | Yes | No |
| Withdrawal Methods | Online via Schwab.com, Phone (800-724-7526), Schwab branch offices | Online via Betterment app, Email support |
| Distribution Options | Lump sum, Partial withdrawal, Systematic withdrawals, Rollover to IRA | Lump sum, Partial withdrawal, Rollover to IRA, Required Minimum Distributions |
Which Should You Choose?
Choose Schwab if you want:
- Full-service seekers
- Active traders
- Those wanting local branches
- TD Ameritrade users
Choose Betterment if you want:
- Tech companies
- Startups
- Hands-off investors
- ESG-conscious employers
Our Verdict: Schwab vs Betterment
Charles Schwab wins this comparison with a score of 9.1/10 vs 6.7/10. Schwab excels with excellent customer service with 24/7 support, making it the stronger choice for most investors in this matchup. However, the best choice ultimately depends on your specific needs, employer plan availability, and investment preferences.
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Schwab vs Betterment: Complete 401(k) Comparison for 2026
Choosing between Charles Schwab and Betterment at Work for your 401(k) is an important decision that affects your retirement savings. Schwab offers full service while Betterment is known for robo-advisor. In terms of fees, Schwab charges 0.03% - 0.80% expense ratios compared to Betterment's 0.03% - 0.15%. Schwab manages $8.5 trillion in assets and serves 28 million participants, while Betterment has $45 billion AUM and 400,000 participants.
Key Differences: Schwab vs Betterment
When comparing Schwab and Betterment, consider their core strengths: Schwab excels with excellent customer service with 24/7 support, while Betterment stands out for fully automated portfolio management. Both providers offer a wide range of investment options including target-date funds, index funds, and managed accounts. Schwab's customer service rating is 4.7/5 compared to Betterment's 4.0/5. For mobile experience, Schwab scores 4.5/5 while Betterment scores 4.4/5.
Which Provider is Right for You?
Choose Schwab if you prioritize full-service seekers. Choose Betterment if you're looking for tech companies. Your decision should also consider your employer's plan availability, fee sensitivity, desired investment options, and customer service expectations. For detailed reviews, visit our individual Schwab and Betterment provider pages.
Frequently Asked Questions
Charles Schwab scores higher in our 2026 rankings with 9.1/10. Schwab is best for full-service seekers, while Betterment is best for tech companies. The right choice depends on your employer's plan and your priorities.
Schwab charges expense ratios of 0.03% - 0.80% with admin fees of $0 - varies by plan. Betterment charges 0.03% - 0.15% expense ratios with admin fees of $150/month + $6/employee. Schwab's fees rating is 4.5/5 compared to Betterment's 4.0/5.
Yes, you can roll over between Schwab and Betterment. Schwab uses Schwab.com for rollovers, while Betterment uses Betterment App. A direct rollover avoids mandatory tax withholding. Contact your new provider to initiate the transfer.
Schwab offers 401(k) loans. Betterment does not offer 401(k) loans.
Schwab scores 4.7/5 for investment options, while Betterment scores 3.2/5. Both offer target-date funds, index funds, and managed accounts. Schwab's investment options include Index Funds, Target Date Funds, Mutual Funds. Betterment offers ETF Portfolios, Target Date Portfolios, Socially Responsible Portfolios.
For small businesses, consider plan minimums and per-participant costs. Schwab is best for full-service seekers, active traders, those wanting local branches, td ameritrade users. Betterment is best for tech companies, startups, hands-off investors, esg-conscious employers. Compare admin fees: Schwab charges $0 - varies by plan vs Betterment's $150/month + $6/employee.
Pavlo Pyskunov
Managing Director & Investment Fund Director
Pavlo Pyskunov analyzes employer-sponsored retirement plans using IRS publications and DOL Form 5500 filings, helping workers maximize their 401(k) savings through data-driven guidance.
Last updated: 2026-03-20