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 my client opt out of holding cash in a specific bank?
Yes, your client may opt out of holding cash at a specific bank. To opt out of a specific bank, please have your client email us.
If your client already has cash at one of our program banks, they can choose to opt out of that specific bank. The total amount of FDIC insurance available to them through Betterment Everyday™ Savings† will be lower as a result. However, if they have funds deposited already at a program bank and don’t opt out, all funds held in that specific program bank will be totaled for purposes of determining FDIC insurance. This means that some of their funds at that specific program bank may be left uninsured, if the total amount deposited at that bank between accounts they open separately and their Betterment Everyday™ Savings exceeds $250,000.