Two-Way Sweep Disclosure

Updated July 30, 2020

Two-Way Sweep automatically moves money between your linked checking account and your Betterment Cash Reserve ("CR") goal. See Cash Reserve Terms and Conditions for additional information. It typically takes 4 to 5 business days to complete a sweep back to your linked checking account.

Two-Way Sweep is not available for goals that can be held in Betterment cash or an Investing portfolio strategy; it can only be accessed through a CR goal. If you wish to use excess cash in your linked checking account for another purpose, or to deposit excess cash into a different account or into a Betterment goal other than CR, you should not enable Two-Way Sweep.

Two-Way Sweep analyzes only the cash available in your linked checking account. Any cash that you maintain in accounts other than the checking account linked to CR is not taken into consideration when determining the timing and/or amount of sweeps. For more information about how Betterment determines when to initiate sweeps, please see our methodology document.

Two-Way Sweep is not available if you have enabled auto-deposits to CR, and you will need to disable auto-deposits to CR if you wish to enable Two-Way Sweep. Two-Way Sweep is available if you make auto-deposits to goals other than CR, and you do not need to make any changes to your auto-deposit settings for these goals if you wish to use Two-Way Sweep.

Two-Way Sweep uses Betterment’s Cash Analysis algorithm to identify target upper and lower bounds for the amount of cash in your linked checking account. Betterment cannot guarantee that Two-Way Sweep will prevent the balance in your linked checking account from falling below the target lower bound.

If you enable Two-Way Sweep, you are authorizing Betterment to make deposits to and withdrawals from your linked checking account according to the parameters set by an algorithm. The maximum amount of money moved into CR in any single sweep is $5,000. After a sweep into your CR goal completes, Two-Way Sweep will pause additional sweeps for a period of at least seven days. If you initiate a manual withdrawal from CR, Two-Way Sweep will pause additional sweeps back into CR for at least two weeks. These settings are fixed, and if you expect to need longer pauses between sweeps, you should disable Two-Way Sweep. Disabling Two-Way Sweep will not cancel any sweeps that are pending at the time.

Two-Way Sweep may not be appropriate for you if you expect a large expenditure in the near future that departs materially from your recent past expenditures, or if you expect your spending habits to change considerably in the near future. If your spending behavior changes while Two-Way Sweep is enabled, Betterment cannot guarantee that you will not overdraft your linked checking account. Two-Way Sweep does not account for impending deposits into other goals, including scheduled auto-deposits and one-time deposits that have not yet completed. Two-Way Sweep does not consider whether paying down debt or saving for another financial goal may be a more appropriate use of your funds.

Certain checking accounts require customers to maintain a minimum balance, or a minimum average balance. Before enabling and when configuring Two-Way Sweep, you should determine whether your linked checking account has any such restrictions or limitations. Two-Way Sweep allows you to set custom target account balances, which may help to ensure that your balance does not fall below any minimum that may apply to your linked checking account.

In certain circumstances, Betterment may temporarily disable your Two-Way Sweep. You will be provided with prior notice before Betterment disables Two-Way Sweep. When Two-Way Sweep is re-enabled, you will be required to confirm that you wish to continue using Two-Way Sweep before any money is moved automatically. During any time that Two-Way Sweep is disabled you will still be able to initiate any desired withdrawals in the Betterment Interface.