Cash Sweep Program Disclosure

Updated October 27, 2026

MTG LLC d/b/a Betterment Securities (“Betterment Securities”, our broker-dealer) operates a Cash Sweep Program through which available cash in your account will be managed. As part of this program, clients authorize Betterment Securities to automatically move, or “sweep,” available cash into one or more banks insured by the Federal Deposit Insurance Corporation (each, a “Program Bank”). Betterment LLC (“Betterment”, our registered investment adviser) instructs Betterment Securities as to how to allocate this uninvested cash across Program Banks, following the settlement of securities transactions and/or completion of transfers from a Transfer Account (as defined below). The Cash Sweep Program is governed by the terms and conditions set out in Section 34 of your Brokerage Agreement and the Cash Sweep Addendum.

Not all cash in the Cash Sweep Program earns interest. Only balances held in Cash Reserve earn interest, and you must affirmatively instruct Betterment if you wish to participate in Cash Reserve and as to the amount of your investment (as described below). Cash Reserve interest rates are variable and subject to change at any time. All other cash in the Cash Sweep Program does not earn interest, including cash in your managed investing portfolios, cash in self-directed investing accounts, and cash held in a Transfer Account.

1. Cash Reserve

Betterment Cash Reserve Overview

Cash Reserve is our 100% cash account with no management fees, which shields your money from market volatility. Given its relatively low returns compared to potential market gains, we generally recommend this account for funds you intend to spend within the next year. Key features of Cash Reserve include a 3.50% annual percentage yield (APY variable), FDIC insurance is available for eligible cash held across Betterment accounts in the Cash Sweep Program up to $4 million at our Program Banks ($8 million for joint accounts), subject to certain conditions, and fast access to your money, including Instant Withdrawals (as defined below) for eligible clients. Eligible cash includes balances in Cash Reserve, cash held in managed investing portfolios and self-directed investing, and cash held in Transfer Accounts (as defined below) but not, for avoidance of doubt, balances in Betterment Checking, which is not a part of the Betterment Cash Sweep Program. Neither Betterment LLC, nor Betterment Securities, nor any of their affiliates is an FDIC-insured bank.

Elective Offering

Cash Reserve is a Betterment offering that you may elect to participate in by providing instruction to Betterment in your account Interface. If you participate in Cash Reserve, you authorize Betterment, on a discretionary basis, to direct Betterment Securities as to the allocation of your funds among Program Banks in order to achieve, on each day, a blended average rate of interest that is available across all client balances in Cash Reserve.

How Cash Reserve Works

Cash Reserve is offered through Betterment and managed via brokerage accounts at Betterment Securities as part of the Cash Sweep Program. While Betterment is not a bank, client funds in Cash Reserve are deposited into one or more FDIC-insured Program Banks, where they earn variable interest and qualify for FDIC insurance, subject to certain conditions. This account is designed to provide clients with a secure, interest-earning option for cash that may later be used to invest through Betterment. However, it is not intended for long-term investing.

Instant Withdrawals and Same-day Transfers

Betterment offers optional expedited transactions for Cash Reserve balances, including withdrawals to an eligible Linked Checking Account through real-time payment networks (“Instant Withdrawals”) and same-day transfers to and from Betterment Checking accounts and between Cash Reserve accounts, subject to the terms set out at www.betterment.com/legal/instant-withdrawals-sameday-transfers.

SIPC and FDIC Protection

Cash held in Betterment accounts, including funds deposited into Cash Reserve, become eligible for FDIC insurance once they are transferred to one or more Program Banks, with up to $250,000 per depositor per bank, with a maximum aggregate coverage of $4 million ($8 million for joint accounts) once deposited into multiple Program Banks. Funds held in Transfer Accounts are covered by FDIC insurance up to $250,000 for all deposits held in the same insurable capacity (e.g., individual, joint, IRA, etc.). Cash held in a Betterment health savings account (“HSA”) is treated as held in your individual (single ownership) capacity for purposes of FDIC insurance. This means HSA balances are combined with any other cash you hold in an individual capacity at the same Program Bank, including in individual taxable investing accounts and Cash Reserve, and count toward the same $250,000 per-bank limit.

If you choose to exclude certain Program Banks from receiving deposits, your total FDIC insurance coverage may be reduced. Funds in transit to or from Program Banks are generally not FDIC-insured but remain covered by SIPC (Securities Investor Protection Corporation). FDIC insurance limits apply to all accounts a client holds at a bank, not just their cash held at Betterment. Certain trust and corporate accounts may be eligible for additional FDIC insurance. Clients are responsible for monitoring their deposits across multiple banks to avoid exceeding FDIC insurance limits.

For more details, refer to the Cash Sweep Addendum to the Betterment Client Agreements and Betterment’s Form ADV Part 2 and our FDIC & SIPC disclosures. Additional information on FDIC insurance can be found at FDIC.gov.

2. Deposit Accounts and Program Banks

The following banks participate in the Cash Sweep Program: