Around late September, we'll automatically transfer your clients' Smart Saver to Betterment Everyday™ Savings.
If you want them to be transitioned automatically, then there is nothing further you need to do. You may not be able to make any transfers to or from your client's Smart Saver for 2 to 5 business days as we process the transfer. This is because we must sell the bond ETFs before placing the proceeds into Betterment Everyday Savings.
When we transition the portfolio, we’ll carry over any deposit settings that your clients had on their Smart Saver. For example, if the client had auto-deposits set up, we’ll carry those over to their new savings vehicle. The only exception to this is if the client had SmartDeposit. SmartDeposit will not be compatible with Betterment Everyday Savings—but they will still be able to make one-time deposits, set up auto-deposits, or with Betterment Everyday Savings specifically, your can set up Two-Way Sweep.
After we transition their Smart Saver to Betterment Everyday Savings, we’ll automatically add them to our Betterment Everyday™ Checking‡ waitlist, so that they will automatically receive the highest APY we are offering, which is 2.16%* APY on Savings—and only available for those on the waitlist. Note that being on the waitlist comes with no obligations to sign up for Checking once it’s available. We’ll simply keep you updated and let you know when you can sign up, if you choose to do so.
If you want to transition faster:
- Log in on a web browser.
- Look for the prompt under your Smart Saver on the left.
- Click through each screen in the flow.
- You’ll see the option to transition now.
When we transition your Smart Saver to Betterment Everyday Savings, we will sell your SHV and NEAR bond ETFs in your Smart Saver and place your 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 high rate our new savings vehicle provides will overcome the tax liability within 1 to 2 years at most.
Don’t want to transition?
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 do not want to transition and you’d like to keep your Smart Saver, you’ll need to open a new General Investing goal 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.
To set up your new goal, log in 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, and then continue on to finalize your goal.
To initiate a goal to goal transfer, select your Smart Saver on the left. Click on “Transfer or Rollover” and then click on “Transfer to another goal” to transfer into your new General Investing goal.