We have sent you and your clients a 30-day notice that we will be transitioning their Smart Saver to Betterment Everyday™ Savings, which comes with the following benefits:
- Earn up to 2.39% APY*
- FDIC insurance, covering up to $1,000,000†
- Faster money movement, with transfers in just 1–2 business days
If you or your clients want to be transitioned automatically, then there is nothing further you need to do. Please note that after we notify your clients of the transition and the 30-day period has passed, we’ll automatically transition them shortly thereafter. You and your clients may not be able to make any transfers to or from their Smart Saver for 2 to 5 business days as we process the transfer. This is because we must sell their bond ETFs before placing the proceeds into Betterment Everyday Savings.
When we transition their portfolio, we’ll carry over any deposit settings that they had on their Smart Saver. For example, if you had set up auto-deposits for them, we’ll carry those over to their new savings vehicle. The only exception to this is if you had SmartDeposit set up. 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 their Betterment Everyday Savings specifically, you can set up Two-Way Sweep.
After we transition a client’s Smart Saver to Betterment Everyday™ Savings, we’ll automatically reserve them a spot on our waitlist for Betterment Everyday™ Checking, so that they will automatically receive the highest APY we are offering, which is 2.39%* APY on Savings until the end of 2019—which is only available for those on the waitlist. Note that being on the waitlist comes with no obligation to sign up for Checking once it’s available.
If you want to transition a client faster and skip the 30-day waiting period:
- Sign into their account using the impersonation feature.
- Look for the prompt under their Smart Saver on the left.
- Click through each screen in the flow.
- You’ll see the option to initiate the transition now.
When we transition your clients’ Smart Saver to Betterment Everyday Savings, we will sell your clients’ SHV and NEAR bond ETFs in their Smart Saver and place their 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 higher rate our new brokerage sweep account provides will overcome the tax liability within 1 to 2 years at most.
One Final Consideration—Free Time
If a client had “free time” on their Smart Saver account, that free time won’t correspond to their new Betterment Everyday™ Savings. We know that it might not seem ideal to your clients to lose the free time, but we’ve done the math, and the high rate that they’re earning with our new savings platform will likely be more valuable to their account balance than the amount of fees they would have saved through the free time.
If you or your client would rather keep their free time and stay invested in bonds, rather than transition to Savings, click here.
We’ll automatically reserve a spot for your client to our Betterment Everyday™ Checking‡ waitlist when we transition their Smart Saver, so that they will automatically receive the highest APY we offer of 2.39% APY*. This promotional APY will apply until the end of 2019—which is only available for those on the waitlist.
Don’t want to transition your clients?
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 and your client do not want to transition and you’d like to keep their Smart Saver, you’ll need to open a new General Investing goal on their behalf 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. You must then initiate a goal to goal transfer from their Smart Saver into their new General Investing goal within 30 days of when you and your client received your transition notice via email.
- To set up a new goal, log in as your client using the impersonation feature 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 / 100% bonds, and then continue on to finalize the goal and have your client sign requisite forms.
- Once the new General Investing goal is set up, to initiate a goal to goal transfer, first select Smart Saver. Click on “Transfer or Rollover” and then click on “Transfer to another goal” to transfer into your client’s new General Investing goal.
- You can also perform these actions within your advisor dashboard as you normally would, first opening an account for a client and having them sign requisite forms, then making the goal-to-goal transfer on their behalf.