Cash Sweep Program Disclosure

Updated March 31, 2026

Effective May 1, 2026, MTG LLC d/b/a Betterment Securities (“Betterment Securities”, our broker-dealer) is consolidating its existing cash management activities into a single, unified program called the Cash Sweep Program through which available cash in your account will be managed. This means cash in your Betterment account, including funds held in our Transfer Sweep Program and Cash Reserve, will be managed under one program. As part of this program, clients authorize Betterment Securities to automatically move, or “sweep,” available cash into one or more banks insured by the Federal Deposit Insurance Corporation (each, a “Program Bank”). Betterment LLC (“Betterment”, our registered investment adviser) instructs Betterment Securities as to how to allocate this uninvested cash across Program Banks, following the settlement of securities transactions and/or completion of transfers from the Transfer Account (as defined below). The Cash Sweep Program is governed by the terms and conditions set out in Section 34 of your Brokerage Agreement and the Cash Sweep Addendum.

1. Cash Reserve

Betterment Cash Reserve Overview

Cash Reserve is our no-fee, 100% cash account, which shields your money from market volatility.  Given its relatively low returns compared to potential market gains, we generally recommend this account for funds you intend to spend within the next year. Key features of Cash Reserve include a 3.25% annual percentage yield (APY variable), annual percentage yield (APY variable), FDIC insurance is available for cash held across Betterment accounts in the Cash Sweep Program up to $2 million at our program banks ($4 million for joint accounts), subject to certain conditions, and fast access to your money. Neither Betterment LLC, nor Betterment Securities, nor any of their affiliates is an FDIC-insured bank. 

Elective Offering

Cash Reserve is a Betterment offering that you may elect to participate in by providing instruction to Betterment in your account Interface. If you participate in Cash Reserve, you authorize Betterment, on a discretionary basis, to direct Betterment Securities as to the allocation of your funds among Program Banks in order to achieve, on each day, a blended average rate of interest that is available across all client balances in Cash Reserve.

FDIC Insurance and Deposit Structure

Cash held in Betterment accounts, including funds deposited into Cash Reserve, become eligible for FDIC insurance once they are transferred to one or more Program Banks, with up to $250,000 of coverage per depositor per bank for each insurable capacity (e.g., individual or joint accounts) at up to eight Program Banks. If you choose to exclude certain Program Banks from receiving deposits, your total FDIC insurance coverage may be reduced. Cash Reserve provides Betterment clients an opportunity to earn interest on cash intended for future securities purchases through Betterment and Betterment Securities. However, it should not be considered a long-term investment option.

How Cash Reserve Works

Cash Reserve is offered through Betterment and managed via brokerage accounts at Betterment Securities under its broader Cash Sweep Program. While Betterment is not a bank, client funds in Cash Reserve are deposited into one or more FDIC-insured Program Banks, where they earn variable interest and qualify for FDIC insurance, subject to certain conditions. This account is designed to provide clients with a secure, interest-earning option for cash that may later be used to invest through Betterment. However, it is not intended for long-term investing.

SIPC and FDIC Protection

Funds held in brokerage accounts are protected by SIPC (Securities Investor Protection Corporation), while funds deposited into Program Banks are FDIC-insured up to $250,000 per depositor per bank, with a maximum aggregate coverage of $2 million ($4 million for joint accounts) once deposited into multiple Program Banks. Funds in transit to or from Program Banks are generally not FDIC-insured but remain covered by SIPC. FDIC insurance limits apply to all accounts a client holds at a bank, not just their cash held at Betterment. Certain trust and corporate accounts may be eligible for additional FDIC insurance. Clients are responsible for monitoring their deposits across multiple banks to avoid exceeding FDIC insurance limits.

For more details, refer to the Cash Sweep Addendum to the Betterment Client Agreements and Betterment’s Form ADV Part 2. Additional information on FDIC insurance can be found at FDIC.gov.

2. Deposit Accounts and Program Banks

The following banks participate in the Cash Sweep Program: