FDIC & SIPC Disclosures

Updated: April 1, 2026

Betterment Securities operates a Cash Sweep Program to transfer Client funds into deposit accounts (each, a “CSP Deposit Account”) at a network of one or more Federal Deposit Insurance Corporation (“FDIC”)-insured Program Banks participating in the Cash Sweep Program. Certain Program Banks provide transactional functionality and temporarily hold client funds in designated deposit accounts ("Transfer Accounts") while pending client instruction, while transfers or trades settle, or when there has been a delay in completing transfers or trades. Please refer to the list of available Program Banks.

Betterment Securities is a member of the Securities Investor Protection Corporation (“SIPC”). Funds held in your brokerage account prior to being swept to Program Banks are not insured by the FDIC and are protected by SIPC up to applicable limits, including up to $500,000 in total coverage with a $250,000 limit for cash.

Funds in the Cash Sweep Program are covered as follows (please refer to the Betterment Client Agreements for further details):

Funds in transit to or from Program Banks through an intermediary settlement bank are generally not FDIC-insured but are covered by SIPC. CSP Deposit Accounts are not protected by SIPC.
In aggregate, your funds deposited into the Cash Sweep Program are eligible for up to $2,000,000 of FDIC insurance (or $4,000,000 for joint accounts) at up to eight Program Banks. Deposit balances in a CSP Deposit Account are insured by the FDIC, an independent agency of the U.S. Government, up to $250,000 for all deposits held in the same insurable capacity (e.g., individual, joint, IRA, etc.). Betterment Securities can deposit funds in a Program Bank in amounts exceeding the FDIC insurance limit.
All deposits that you hold at a Program Bank – including deposits held in a Transfer Account, Cash Reserve, cash held in investing portfolios, and cash held in SDI Sub-Accounts, as well as savings and checking accounts, money market deposit accounts, and certificates of deposit maintained directly by you at the Program Bank – will be aggregated for the purpose of determining available FDIC insurance. If your total funds on deposit at a Program Bank exceed the applicable FDIC insurance limit, the FDIC will not insure your funds in excess of the limit.
Cash held in Transfer Accounts is covered by FDIC insurance up to $250,000 for all deposits held in the same insurable capacity (e.g., individual, joint, IRA, etc.). If you hold funds in a CSP Deposit Account and funds in transit in a Transfer Account at the same Program Bank on any given day, your funds at that Program Bank could exceed the FDIC insurance limit for a given insurable capacity.
Please note that money market fund balances are not considered cash for this purpose; they are considered to be securities. Funds held at Program Banks (including in Transfer Accounts) are not protected by SIPC. Visit www.sipc.org or call (202) 371-8300 for more information, including a brochure on SIPC protection. SIPC coverage does not cover fluctuations in the market value of your investments.
You can exclude Program Banks from the Cash Sweep Program by making a request in writing to Betterment at support@betterment.com, subject to any conditions set by Betterment on Client’s ability to exclude Program Banks. If you elect to exclude one or more Program Banks from receiving Client’s funds, the FDIC insurance for which you are eligible will be reduced. For more information, please review the Cash Sweep Addendum to the Betterment Client Agreements.

Neither Betterment nor Betterment Securities is responsible for monitoring your deposits in any Program Bank to determine whether it exceeds the limit of available FDIC insurance. You are solely responsible for monitoring the total amount on deposit with each Program Bank (including amounts in other accounts at the Program Bank held in the same right and legal capacity) in order to determine the extent of deposit insurance coverage available on those deposits. If you are a trustee, you are responsible for determining the application of the insurance rules for the trust’s beneficiaries.

Although certain types of accounts, such as trust accounts, can be eligible for additional FDIC insurance based on the number of beneficiaries, Betterment will allocate no more than $250,000 ($500,000 for joint accounts) at each Program Bank irrespective of any additional FDIC insurance for which you are eligible. In its discretion, Betterment can allocate funds in excess of $2,000,000 ($4,000,000 for joint accounts) (such funds, “Excess Funds”) at (i) a Program Bank in which you already have deposits in an amount over the FDIC insurance limit or (ii) additional Program Banks in an amount under or over the FDIC insurance limit. Excess Funds deposited in an amount over the FDIC insurance limit will not be insured by the FDIC.

If a bank failure occurs, and FDIC deposit insurance payments become necessary, there is no specific time period during which the FDIC must make insurance payments available, and you will not earn any interest on your deposits from the time a Program Bank is closed. You may be required to provide certain documentation to the FDIC before insurance payments are made.

Neither Betterment LLC, nor Betterment Securities, nor any of their affiliates, is an FDIC-insured bank. FDIC insurance only protects against bank failure. Investment products offered through Betterment LLC and Betterment Securities are not deposits, are not FDIC insured, and may lose value. FDIC pass-through insurance is subject to conditions, such as recordkeeping requirements applicable to Betterment Securities.

For more information regarding FDIC deposit insurance, you should also review carefully the information available on the FDIC's web site at https://www.fdic.gov/deposit/index.html. You can also call the FDIC at (877) 275-3342 or write to the following address: Deposit Insurance Outreach, Division of Depositor and Consumer Protection, 550 17th Street NW, Washington, DC 20429.