Yes, you may opt out of holding cash at a specific bank. To opt out of a specific bank, please email us.
If you already have cash at one of our program banks, you can still choose to opt out of that specific bank. Regardless of the number of program banks participating, the total amount of FDIC insurance available to you through Cash Reserve will be lower by $250,000 for each bank you opt out from.
If you have non-Betterment funds deposited at a program bank already and elect not to opt out, all funds that you hold in that specific program bank (in the “individual” account ownership category) will be totaled for purposes of determining FDIC insurance. This means that some of your funds at that specific program bank may be left uninsured, if the total amount deposited at that bank between individually owned accounts you open separately and your Cash Reserve exceeds $250,000.
Any cash in Cash Reserve is FDIC insured up to $2 million† once deposited into our program banks. If you have not opted out of any of our program banks and you have less than $2 million invested in Cash Reserve, we will not allow your balance to exceed $250,000 in any one program bank. This ensures that you are eligible for the maximum possible amount of FDIC insurance at each program bank.
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