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Behavioral Finance

Manage Your Cash the Modern Way With Two-Way Sweep

Manage your cash the modern way—effortlessly. Try out Two-Way Sweep, our latest in cash management technology.

Articles by Volodymyr Chernat

By Volodymyr Chernat
Senior Quantitative Researcher, Betterment  |  Published: February 5, 2019

In the past, cash management has been a manual and time consuming process.

Save time by using our newest feature to move cash between accounts as needed.

You could earn a high yield on your extra cash by moving it into Betterment Everyday™ Savings†—effortlessly.

Most of us organize our day-to-day financial lives using three different accounts: a checking account, a savings account, and a credit card.

The Headaches of Cash Management

After paying bills and paying down credit card balances each month, you may accumulate extra cash in your checking account. Over time, if you leave this extra cash in your checking account, it will likely lose value to inflation, and you may wish to move that extra cash to an account that earns a higher yield, such as a savings account.

On the other hand, if you find that you end up spending more than your income in a given month, you may need to move cash back from your savings account (or from another type of account) to your checking account.

If you choose to manage your cash manually, not only would you have to take time to move money back and forth, but to get the most out of your hard earned money, you may also end up spending your time comparing banks to find the best yield for your savings account.

Does all this sound like the perfect job for a computer? It is.

Two-Way Sweep Provides a Solution

The next evolution of cash management for Betterment customers is here. By working alongside our cash analysis recommendations and Betterment Everyday™ Savings, Two-Way Sweep minimizes the need for tedious manual cash management practices.

Two-Way Sweep automates transfers between your checking account and our savings vehicle so that idle cash you might have in your checking account is moved to help earn a higher yield. Conversely, if we detect insufficient funds in your checking account for your expected future spending needs, Two-Way Sweep will move cash back to your checking account from Betterment Everyday™ Savings.

Now you can have a personal cash management tool that helps you earn a high yield on money that may otherwise be sitting in cash, and also aims to keep enough cash in your checking account to cover expected future cash needs.

Ready to Try the Latest Technology?

We have automated cash management by addressing two competing objectives: increasing returns on idle cash while sufficiently funding your checking account to cover expected future cash needs. Get started or log in to access Two-Way Sweep in your Betterment account. We’ve also got all your Two-Way Sweep questions covered in our methodology and our comprehensive overview.


 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.

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