Wealthfront recently lowered its account minimum to $500 as its CEO, Adam Nash, attacked Betterment. Jonathan Stein, the CEO of Betterment, has since rebutted. Stein touched on many of Nash's claims, focusing primarily on pricing and ongoing customer alignment. In trying to prove that he has always focused on managing short and long term goals, he even went as far as mentioning his childhood Boys Scout badge!
Inaccurate statement #6: Equating the real cost of fiduciary advice with overdraft fees. Facts: I am well familiar with the outrageous overdraft fees charged by some banks. Avoiding these kinds of practices is one of the things that led me to start Betterment — to start a financial services company from a place of customer alignment. You’ll see bad industry fee practices called out in our investor deck — and how we are a reaction to them, designed from the beginning to align with customers. We do not charge accounts with zero balances — you can’t overdraft or go negative here. Again, we started from a place of alignment, building the service we would want for ourselves.