Smart Saver is our low-risk investing account for your clients’ extra cash. This is money that your clients might have sitting in a checking account or low-yield savings account.
The Betterment for Advisors Smart Saver solution aims to earn income similar to a savings account; however, rather than putting your clients’ money in a bank that returns interest by loaning their money out, Betterment puts their cash in a low risk portfolio that yields income through bonds.
More specifically, we invest unused cash in the 100% Bond, 0% Stock Betterment Portfolio Strategy, which consists of:
- 80% short-term U.S. Treasuries (SHV)
- 20% short-term investment-grade bonds (NEAR)
By combining multiple low-risk assets, we help you seek higher expected returns for your clients, while keeping their risk low.
At this time, a client can only have one Smart Saver within their personal account and cannot extend it to a joint or trust account. Further, the actual yield of a Smart Saver account will vary based on Betterment for Advisors’ management fee and any other fees you charge on their account.
We encourage you to review our methodology for more information on how Smart Saver works.