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FAQs Regarding SVB and Signature Bank Closures

The Betterment team is monitoring the situation regarding the closure of Silicon Valley Bank and Signature Bank. Please refer to the following frequently asked questions for the latest developments.

By Betterment Editors

Published Mar. 15, 2023

FAQs Regarding SVB and Signature Bank Closures Mar 15, 2023 6:03:59 PM The Betterment team is monitoring the situation regarding the closure of Silicon Valley Bank and Signature Bank. Please refer to the following frequently asked questions for the latest developments. Is Betterment affected by the closing of Silicon Valley Bank (SVB) or Signature Bank? No. We do not anticipate either bank's closure to have a material impact on Betterment or its operations. Betterment does not maintain customer funds with either SVB or Signature Bank. While Betterment’s parent company, Betterment Holdings and its subsidiaries have a relationship with Signature Bank, we do not anticipate any disruptions to our services given the Federal Reserve and FDIC’s assurances. Betterment has a variety of corporate protocols in place to ensure continued operations. What if I use Silicon Valley Bank or Signature Bank to process payroll? We expect everything to process correctly on our end. If you have more questions, please reach out to your bank’s payroll department. Our teams will continue to monitor and proactively reach out should this change. How do I update my 401(k) Plan’s bank account information if I’m working with a new bank? Bank account information can be updated through the Betterment Plan Sponsor Portal by plan managers with appropriate admin access. If you need help making this change, please reach out to us and we’ll support you through this process. Where are my plan and participant funds held and how are they protected? Plan and participant assets are custodied by our affiliated broker-dealer, Betterment Securities, and APEX Clearing Corp, our third party clearing firm. Millenium Trust Company serves as directed trustee to plan assets. Betterment Securities is a member of the Securities Investor Protection Corporation (SIPC). SIPC insurance covers up to $500,000 of missing assets (securities and cash), including a maximum of $250,000 for cash claims. Read more about how Betterment helps to keep your investments safe.

The Betterment team is monitoring the situation regarding the closure of Silicon Valley Bank and Signature Bank. Please refer to the following frequently asked questions for the latest developments.

Is Betterment affected by the closing of Silicon Valley Bank (SVB) or Signature Bank?

No. We do not anticipate either bank's closure to have a material impact on Betterment or its operations. Betterment does not maintain customer funds with either SVB or Signature Bank. While Betterment’s parent company, Betterment Holdings and its subsidiaries have a relationship with Signature Bank, we do not anticipate any disruptions to our services given the Federal Reserve and FDIC’s assurances. Betterment has a variety of corporate protocols in place to ensure continued operations.

What if I use Silicon Valley Bank or Signature Bank to process payroll?

We expect everything to process correctly on our end. If you have more questions, please reach out to your bank’s payroll department. Our teams will continue to monitor and proactively reach out should this change.

How do I update my 401(k) Plan’s bank account information if I’m working with a new bank?

Bank account information can be updated through the Betterment Plan Sponsor Portal by plan managers with appropriate admin access. If you need help making this change, please reach out to us and we’ll support you through this process.

Where are my plan and participant funds held and how are they protected?

Plan and participant assets are custodied by our affiliated broker-dealer, Betterment Securities, and APEX Clearing Corp, our third party clearing firm. Millenium Trust Company serves as directed trustee to plan assets. Betterment Securities is a member of the Securities Investor Protection Corporation (SIPC). SIPC insurance covers up to $500,000 of missing assets (securities and cash), including a maximum of $250,000 for cash claims. Read more about how Betterment helps to keep your investments safe.