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Managing Your Money

Betterment Everyday™ Savings And Checking FAQ

We’ll help you make the most of your everyday money. Learn about Betterment Everyday™ Checking and Savings.

Articles by Betterment Editors

By the Editorial Staff
Betterment Resource Center  |  Published: July 23, 2019

Depiction of Betterment app and debit card


TABLE OF CONTENTS

Betterment Everyday™ Overview

Betterment Everyday™ Savings

Betterment Everyday™ Checking—Coming Soon


What is Betterment Everyday™?

We’re excited to offer our new cash management solution for your everyday money. Betterment Everyday™  is a checking and savings platform that you’ll be able to use alongside your Betterment investing account—if you also choose to invest—all in one place.

Betterment Everyday™ Savings—Available Now

  • Earn up to APY*
  • FDIC insurance covering up to $1,000,000†
  • Access your cash in 1-2 business days
  • No limits on withdrawals
  • No minimum balance
  • No fees on your balance

Later this year, you’ll be able to open a checking account with us. By securing your spot on the waitlist for Betterment Everyday™ Checking, you can unlock our promotional rate on your Betterment Everyday™ Savings through 2019, which is currently up to APY. This promotional rate is variable and is subject to fluctuations.

Betterment Everyday™ Checking—Coming Soon‡

  • ATM fees are reimbursed worldwide
  • No minimum balance
  • No overdraft fees
  • No maintenance fees
  • FDIC insurance on up to $250,000

Are there any minimum balance requirements?

There are no minimum balance requirements to use our checking and savings platform. This means that the minimum balance is $0. You can have as little or as much cash in Betterment Everyday™ as you want—we won’t judge.

One thing to note is that the smallest deposit amount you can make into Betterment Everyday™ Savings†  is $10. This is due to ACH transaction limitations.

Are Betterment Everyday™ products covered by FDIC insurance?

Yes. Any cash in Betterment Everyday™ Savings†  is covered up to $1,000,000 in FDIC insurance, and any cash in Betterment Everyday™ Checking‡  is covered up to $250,000 in FDIC insurance. Read more here.

Is Betterment a bank?

Neither Betterment LLC nor Betterment Financial LLC, nor any of their affiliates, is a bank.

Advisory services are provided by Betterment LLC, an SEC-registered investment adviser. Checking accounts and the Betterment Visa Debit Card (Betterment Everyday™ Checking) are provided by and issued by nbkc bank, Overland Park, Kansas, Member FDIC. Cash in the Betterment Everyday™ Savings program is held at program banks and is eligible for FDIC insurance. For more information, see the Savings terms and conditions.

Who is eligible to use the checking and savings platform?

You must reside in the U.S. full-time to use Betterment’s services. You must also be 18 years old, as we are not able to provide services to minors.

Am I required to use both checking and savings?

No. We know that everyone’s needs are different, and we want to provide you with the flexibility to make your own decision on which of our cash management and investing products serve you best.

Will you run a credit check?

No. Credit checks are not required in order to use our Betterment Everyday™ checking and savings platform.

However, we will collect your personal information upon signup. We are mandated to collect your personal information by our regulators and the IRS, so there is no way around this requirement.

Can I open more than one Savings vehicle?

At the present time, an individual cannot open two separate savings vehicles through Betterment Everyday™ Savings. We’ll be sure to monitor customer requests for this, as we may be able to offer the possibility in the future.

Can I open a joint account?

Joint accounts are not available through Betterment Everyday™ at the present time. We’ll be sure to monitor customer requests for joint accounts, as it’s something we may be able to offer in the future.

Can I open an account for a company or LLC?

Company and LLC accounts are not available through Betterment Everyday™ at the present time. We’ll be sure to monitor customer requests for company and LLC accounts, as we may be able to offer them in the future.

Can I open an account for my trust?

Accounts for trusts are not available through Betterment Everyday™ at the present time. We’ll be sure to monitor customer requests for accounts for trusts, as it’s something we may be able to offer in the future.

What is Betterment Everyday™ Savings?

Betterment Everyday™ Savings is our newest way to help you save. It’s available now, and you can use it alone or alongside other investment goals you already have with Betterment.

Benefits:

  • Earn up to APY*
  • FDIC insurance covering up to $1,000,000†
  • Access your cash in 1-2 business days
  • No limits on withdrawals
  • No minimum balance
  • No fees on your balance

How can I sign up?

Ready to save? If you don’t have an account with Betterment at all yet, click here to sign up. It only takes a few minutes!

If you already have a Betterment investing account, click here.

Are there any fees?

Betterment Everyday™ Savings† has no fees on your balance. 

While Betterment is not assessing fees from your balance, Betterment Securities receives a small portion of the total interest Program Banks pay. The portion Betterment Securities receives will be up to 0.25% Annual Percentage Rate (APR). 

The APY figure in Betterment’s advertisements and the daily rate displayed inside of your Betterment account already take into account the portion of the interest Betterment Securities receives. The rates you see are the rates we are passing on to you.

As of , the highest APY we are offering is up to *.

What is the interest rate on my cash?

Your annual percentage yield, or APY, is variable and can change. As of , the highest APY we are offering is up to *. Interest will be paid into your account by the first business day of each month, unless that day is a bank holiday, then it will be paid by the following business day.

Reserve your spot on the Betterment Everyday™ Checking‡  waitlist to unlock our promotional rate on your Betterment Everyday™ Savings through 2019, which is currently up to APY. This promotional rate is variable and is subject to fluctuations.

If you don’t sign up for the waitlist, the variable APY we can offer you as of is .

Why does the interest rate fluctuate?

The program banks that participate in Betterment Everyday™ Savings† all pay interest rates that are tied to the federal funds rate, which is the rate at which banks can loan money to each other, and it’s set by the Federal Reserve

The federal funds rate aims for a target range, rather than aiming for a specific number. Because of this, the federal funds rate can change by a small amount from day to day. That means that your interest can also vary by a small amount every day—think 0.01% to 0.03%—as we experience those changes. You’ll notice this change after you log in to your account and see your current rate from day to day. 

However, the Federal Reserve also can change the target federal funds rate (usually in 0.25% increments). If and when this happens, your interest rate will vary by more than the typical daily variation. If the federal funds rate goes up, your rate will go up, too. If it goes down, your rate will track that change as well.

Note that the rate we market on our websites and in our advertisements is updated every month, rather than every day. When you log in to your account, you will see the current rate as of that day. 

Is Savings FDIC insured?

Yes, funds deposited in Betterment Everyday™ Savings are FDIC insured, up to $1,000,000.

Betterment LLC clients may choose to participate in Betterment Everyday Savings (“Savings”), through which clients’ funds are deposited into one or more banks (“Program Banks“) where the funds earn a variable interest rate and are eligible for FDIC insurance. FDIC insurance is not available until deposits are received by the Program Banks. There are currently at least four Program Banks, which allows funds deposited into Savings to be eligible for up to $1,000,000 of FDIC insurance (up to $250,000 at each program bank). Clients are responsible for monitoring their total assets at each Program Bank, including existing deposits held at Program Banks outside of Savings, to ensure FDIC limits are not exceeded, which could result in some funds being uninsured. The FDIC calculates the limits based on all the accounts held at a bank, not just cash in Savings. If you elect to exclude one or more Program Banks the amount of FDIC insurance available to you through Savings may be lower. For more information on FDIC insurance please visit www.FDIC.gov. The deposits in Savings are not covered by SIPC. See Program Terms and Conditions for additional information.

Can I opt out of holding my cash in a specific bank?

Yes, you may opt out of holding cash at a specific bank. To opt out of a specific bank, please email us.

If you already have cash at one of our program banks, you can choose to opt out of that specific bank. Please note that, regardless of the number of program banks participating, the total amount of FDIC insurance available to you through Betterment Everyday™ Savings† will be lower by $250,000 for each bank you opt out from.

Please note that if you have non-Betterment funds deposited at a program bank already and elect not to opt out, all funds that you hold in that specific program bank (in the “individual” account ownership category) will be totaled for purposes of determining FDIC insurance. This means that some of your funds at that specific program bank may be left uninsured, if the total amount deposited at that bank between individually owned accounts you open separately and your Betterment Everyday™ Savings exceeds $250,000.

Please note that any cash in Betterment Everyday Savings is FDIC insured up to $1,000,000†. If you have not opted out of any of our program banks and you have less than $1,000,000 invested in Savings, we will not allow your balance to exceed $250,000 in any one program bank. This ensures that you are eligible for the maximum possible amount of FDIC insurance at each program bank.

Will I receive any tax forms due to my earned interest?

Yes, we will provide you with a 1099-INT tax form by January 31st of each year if you earned $10 or more in interest during the previous calendar year. You’ll be able to download it from directly within your account, and we’ll email you to let you know when it’s available.

Is there a limit to withdrawals?

Unlike transfers from a savings account at a typical bank, Betterment Everyday™ Savings has no transfer limits on how many times you can move money from your account.

How long do deposits take?

Deposits into Betterment Everyday™ Savings from your linked checking account generally take 1 to 2 business days to complete, depending on when you put in your request.

  • If the deposit request is placed before 10 PM ET, it will generally appear in Savings in 1 business day.
  • If the deposit request is placed after 10 PM ET, it will generally appear in Savings in 2 business days.

Transactions can be subject to processing delays in certain circumstances.

Note that bank holidays do not count as business days. You can see a list of bank holidays here.

The smallest deposit amount you can make is $10. The largest deposit you can make per day via ACH is $300,000.

How long do withdrawals take?

Unlike withdrawals from a savings account at a typical bank, Betterment Everyday™ Savings has no withdrawal limits on how many times you can move money from your account.

When you withdraw from Savings, the cash will be transferred to your linked checking account generally within 1 to 2 business days, depending on when you put in your request.

  • If the withdrawal request is placed before 1 PM ET, it will generally appear in your checking account in 1 business day.
  • If the withdrawal request is placed after 1 PM ET, it will generally appear in your checking account in 2 business days.

Transactions can be subject to processing delays in certain circumstances.

While 1-2 business days is generally the expected withdrawal timeline from Betterment Everyday™ Savings, withdrawing funds soon after a deposit can trigger a temporary hold on your withdrawal. This hold should last no longer than 4 business days. If further action is required on your part, we will let you know.

Note that bank holidays do not count as business days. You can see a list of bank holidays here.

Can I transfer money to and from my investing goals?

Yes, you can transfer between Savings and any individual taxable investment goal. If you transfer from Betterment Everyday™ Savings to one of your individual taxable investment goals with Betterment, the process generally takes up to 2 business days.

In the reverse situation, if you transfer from one of your individual taxable investment goals to Betterment Everyday™ Savings, it generally takes up to 2 business days. Transactions can be subject to processing delays in certain circumstances.

Note that bank holidays do not count as business days. You can see a list of bank holidays here.

What is the account number and routing number?

Betterment Everyday™ Savings is not like a savings account that you can obtain at a traditional bank and will not have its own routing and account number. You won’t be able to wire funds in or transfer funds in directly from another unlinked bank account. Additionally, we are not offering direct deposits between your paycheck and Betterment Everyday™ Savings at this time.

You’ll have to link a bank account within your Betterment account in order to initiate a transfer into Savings.

If you need your Savings account number, it’s the same as your “Personal Account number,” which you can find here—just note that you will not be able to use this number to conduct any transfers.

Can I access Savings with a debit card?

We’ll provide a Betterment Visa Debit Card‡ to you if you open Betterment Everyday™ Checking when it becomes available later this year. Be sure to join the waitlist to secure your spot and receive updates.

The debit card will allow you to access funds in Checking. You will not be able to access your Savings with the debit card.

What happened to Smart Saver?

Smart Saver was a low-risk investment account that was designed to earn a higher yield than a typical savings account through the use of short-term treasury bonds. We’ve replaced this offering with our Betterment Everyday™ Savings† product, which is a savings vehicle that offers a high rate, FDIC insurance, and faster transaction times.

If you’d prefer to invest in low-risk bonds with the same portfolio construction as Smart Saver, you can open a new General Investing goal and set the allocation to 0% stocks / 100% bonds. We’ll invest 80% of your funds in SHV and the other 20% will be invested in NEAR, which are the exact same bond ETFs that we used for Smart Saver.

Transitioning Smart Saver to Betterment Everyday™ Savings

Around late September, we’ll automatically transfer your Smart Saver to Betterment Everyday™ Savings.

If you want to be transitioned automatically, then there is nothing further you need to do. You may not be able to make any transfers to or from your Smart Saver for 2 to 5 business days as we process the transfer. This is because we must sell your bond ETFs before placing the proceeds into Betterment Everyday Savings.

When we transition your portfolio, we’ll carry over any deposit settings that you had on your Smart Saver. For example, if you had auto-deposits set up, we’ll carry those over to your new savings vehicle. The only exception to this is if you had SmartDeposit. SmartDeposit will not be compatible with Betterment Everyday Savings—but you will still be able to make one-time deposits, set up auto-deposits, or with Betterment Everyday Savings specifically, you can set up Two-Way Sweep.

After we transition your Smart Saver to Betterment Everyday Savings, we’ll automatically add you to our Betterment Everyday™ Checking‡  waitlist, so that you will automatically receive the highest APY we are offering, which is APY* on Savings—and only available for those on the waitlist. Note that being on the waitlist comes with no obligations to sign up for Checking once it’s available. We’ll simply keep you updated and let you know when you can sign up, if you choose to do so.

If you want to transition faster:

  • Log in on a web browser.
  • Look for the prompt under your Smart Saver on the left.
  • Click through each screen in the flow.
  • You’ll see the option to transition now.

Tax Considerations

When we transition your Smart Saver to Betterment Everyday Savings, we will sell your SHV and NEAR bond ETFs in your Smart Saver and place your cash into Betterment Everyday™ Savings. According to our analysis, for about 99% of our customers, we estimate the tax implications of this transition will be less than $100. The average estimated tax implication is around $4. For the other 1% of customers, even though the tax impact may be larger, our analysis shows that the earnings from the high rate our new savings vehicle provides will overcome the tax liability within 1 to 2 years at most.

One Final Consideration—Free Time

If you had “free time” on your Smart Saver account, that free time won’t correspond to your new Betterment Everyday™ Savings†. We know that it might not seem ideal to you to lose the free time, but we’ve done the math, and the high rate that you’re earning with our new savings platform will likely be more valuable to your account balance than the amount of fees you would have saved through the free time.

If you would rather keep your free time and stay invested in bonds, rather than transition to Savings, see below.

We’ll automatically add you to our Betterment Everyday™ Checking‡  waitlist when we transition your Smart Saver, so that you will automatically receive the highest APY we offer of APY*—which is only available for those on the waitlist.

Don’t want to transition?

Our recommendation is to transition, due to the added benefits of Betterment Everyday Savings: a high rate, FDIC insurance, and faster transaction times.

If you do not want to transition and you’d like to keep your Smart Saver, you’ll need to open a new General Investing goal and set the allocation to 0% stocks / 100% bonds.

Our 100% bond allocation contains 80% SHV and 20% NEAR, which is the same makeup of Smart Saver. To set up your new goal, log in and click on “Add New”. Choose a General Investing goal. When you get to the “goal details” page where it asks you to name the goal and set a target amount, you’ll notice portfolio information at the bottom. Click on “see detail” and then click “change” next to the recommended stock allocation %. Drag the slider all the way to the left for 0% stocks, and then continue on to finalize your goal.

To initiate a goal to goal transfer, select your Smart Saver on the left. Click on “Transfer or Rollover” and then click on “Transfer to another goal” to transfer into your new General Investing goal.

Two-Way Sweep

You’ll be able to deposit into Betterment Everyday Savings by making a one-time deposit, by setting up auto-deposits, or by using Two-Way Sweep. Two-Way Sweep is a way to effortlessly manage your cash by moving it to and from your checking account and Betterment Everyday Savings when you need it.

What is Betterment Everyday™ Checking?

Betterment Everyday Checking accounts are on their way. This will be our newest cash management solution, and it will be available later this year. Reserve your spot on the waitlist to get earlier access and receive updates.

ATM fees will be reimbursed worldwide and the cash in your checking account will be covered up to $250,000 in FDIC insurance‡. Plus, there are no minimum balances, no maintenance fees, and no overdraft fees.

How can I secure my spot on the waitlist?

You can reserve your spot on the waitlist to secure earlier access and receive updates, but don’t worry, you aren’t committing to opening a checking account just by signing up for the waitlist. We’ll simply keep you in the loop on any updates, and we’ll let you know when Betterment Everyday™ Checking‡  becomes available for you to sign up for and start using.

Get A Higher Betterment Everyday™ Savings Rate

Reserve your spot on the Betterment Everyday™ Checking waitlist to unlock our promotional rate on your Betterment Everyday™ Savings through 2019, which is currently up to APY. This promotional rate is variable and is subject to fluctuations.

Waitlist Details

You can move up the waitlist to have a chance to gain access sooner. Simply invite friends to secure their spot on the waitlist with your dedicated invite link, and once they do, you’ll move higher up on the list for a chance to get earlier access to Betterment Everyday™ Checking.

To find your invite link, log in and click on Introducing Betterment Everyday™ on the left—if you’re already a customer. If you’re not, just check the confirmation you got when you secured your own spot on the waitlist. Your referral link should be in there.

Remember that others on the list can move up, too, which means you may find your waitlist number either increasing or decreasing over time. Keep referring friends to stay near the top.

To stop receiving updates about Betterment Everyday™ Checking or the waitlist, simply hit “Unsubscribe” at the bottom of any email, and we’ll stop sending you updates. We’ll still keep your place in line for access, in case you change your mind, but you won’t get any further marketing emails from us. The only exception is that we will send you up to two email notifications when your spot opens up and you are able to sign up, in case you decide to try it out after all. Note that unsubscribing will also unsubscribe you from all of our other marketing emails.

Remove Yourself From Waitlist

If you want to completely remove yourself from the waitlist, and lose your chance at a higher rate for Savings, you can email us and request that we remove you.

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Betterment Everyday Savings

* The annual percentage yield (“APY”) on the deposit balances in Betterment Everyday Savings (“Savings”) is and represents the weighted average of the APY on deposit balances at the banks participating in Savings (the “Program Banks”) and is current as of . This APY is variable and subject to change daily. Deposit balances are not allocated equally among the participating Program Banks. A minimum deposit of $10 is required, but there is no minimum balance required to be maintained. The APY cited above is a promotional APY available only to customers who join the waiting list for Betterment Everyday Checking. The APY on deposit balances of customers who choose not to join the Betterment Everyday Checking waiting list is less than the promotional rate, and is as of , subject to change daily. Betterment Securities will receive fees in connection with deposit balances earning the non-promotional APY. See current APY. The promotional APY is available through the end of the year and may be extended in Betterment’s sole discretion. The APY available to a customer may be lower if that customer designates a bank or banks as ineligible to receive deposits.

See Betterment’s Form ADV Part II and Terms and Conditions for additional information on the deposit allocation methodology.

 Betterment Everyday Savings (“Savings”) is offered by Betterment LLC. Clients of Betterment LLC may participate in Savings through their brokerage account held at Betterment Securities. Neither Betterment LLC nor any of its affiliates is a bank. Through Savings, clients’ funds are deposited into one or more banks (“Program Banks“) where the funds earn a variable interest rate and are eligible for FDIC insurance.  Savings provides Betterment clients with the opportunity to earn interest on cash intended to purchase securities with through Betterment LLC and Betterment Securities. Savings should not be viewed as a long-term investment option.

Funds held in brokerage accounts while in transit to Program Banks are not eligible for FDIC insurance. Funds deposited into Savings are eligible for up to of FDIC insurance once the funds reach one or more Program Banks (up to $250,000 each at  up to four Program Banks). Even if there are more than four Program Banks, Clients will not necessarily have deposits allocated in a manner that will provide FDIC insurance above . The FDIC calculates the insurance limits based on all accounts held in the same insurable capacity at a bank, not just cash in Savings. If clients elect to exclude one or more Program Banks from receiving deposits the amount of FDIC insurance available through Savings may be lower. Clients are responsible for monitoring their total assets at each Program Bank, including existing deposits held at Program Banks outside of Savings, to ensure FDIC insurance limits are not exceeded, which could result in some funds being uninsured.  For more information on FDIC insurance please visit www.FDIC.gov. Deposits held in Program Banks are not protected by SIPC For more information see the full terms and conditions and Betterment LLC’s Form ADV Part II.

Betterment Everyday Checking

‡ Checking accounts and the Betterment Visa Debit Card provided by and issued by nbkc bank, Overland Park, Kansas, Member FDIC. Funds deposited into Checking will be eligible for up to $250,000 of FDIC insurance. Betterment Everyday Checking made available through Betterment Financial LLC. Betterment Financial LLC does not charge foreign transaction fees for the use of the Betterment Visa Debit Card outside of the United States. However, Visa charges a foreign transaction fee of 1%. Betterment Financial LLC does not reimburse this 1% transaction fee on foreign ATM transactions or on any other foreign transactions or purchases.

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