Instant Withdrawals and Same-day Transfers Terms & Conditions

These Terms and Conditions explain how Instant Withdrawals and Same-day Transfers work at Betterment. They are a faster way to move your money, usually completing in minutes instead of days.

• Instant Withdrawals: move money from your Betterment Cash Reserve (“Cash Reserve”) account to an eligible linked external checking account.
• Same-day Transfers: move money between your Cash Reserve accounts, or between Cash Reserve and Betterment Checking.

Below you’ll find important disclosures about what funds and transfers are eligible, how long transfers take, and any limits and fees that apply.

Please read these Terms & Conditions carefully. By using Instant Withdrawals or Same-day Transfers, you acknowledge that you have received, carefully read, and agreed to be bound by these Terms & Conditions.

1. Description of Service

Instant Withdrawals and Same-day Transfers (together, “Expedited Transfers”) give you faster access to, or earlier credit for, your funds than a standard transfer via the Automated Clearing House (“ACH”) system, which typically takes 1-3 business days to complete. With respect to your Cash Reserve account, Expedited Transfers are provided by Betterment LLC (“Betterment”), instructing MTG LLC d/b/a Betterment Securities (“Betterment Securities”) acting as your agent. With respect to your Betterment Checking account, Same-day Transfers are provided by Betterment Financial LLC (“Betterment Financial”, and collectively with Betterment and Betterment Securities, the “Betterment Entities”), facilitated by nbkc bank ("nbkc"), a bank chartered under the laws of the State of Kansas, member of the Federal Deposit Insurance Corporation (“FDIC”). Checking Terms & Conditions, available at http://www.betterment.com/legal/everyday-checking, provide additional information about our Checking offering.

You understand and agree that neither the Betterment Entities nor any other persons make any guarantees regarding the availability of Expedited Transfers at any particular time or for any particular transfer and none of the Betterment Entities shall be liable for any loss, damage or other harm caused by or arising out of any delay or refusal to process an Expedited Transfer.

Expedited Transfers are only available to clients of Betterment (“Clients”) who have agreed to the Betterment Client Agreements (including the Cash Sweep Addendum contained therein), and the related documents which govern Cash Reserve accounts. In addition, Same-Day Transfers involving Betterment Checking are only available to Clients who are also customers of Betterment Financial and nbkc and who have also agreed to the Consumer Deposit Agreement with nbkc, Checking Terms & Conditions, and the related documents which govern Betterment Checking accounts. These Terms & Conditions should be read in conjunction with these other documents and in the event of a conflict between any of these other documents and these Terms & Conditions, these Terms & Conditions shall govern Expedited Transfers.

2. Instant Withdrawals

2.1 Description of Instant Withdrawals

Instant Withdrawals allow eligible clients to withdraw funds from their Cash Reserve account to their Eligible Linked Account, with funds typically made available in the Eligible Linked Account within minutes. An “Eligible Linked Account” is an eligible external checking account linked to your Betterment account. Instant Withdrawals are sent outside of the ACH system, through real-time payment networks such as The Clearing House’s RTP® network or the Federal Reserve’s FedNow® Service (each, an “Instant Payment Network”) from a transactional account maintained by Betterment Securities at a Program Bank (the “Instant Withdrawal Facilitation Account”), and not all financial institutions or accounts are able to receive payments through an Instant Payment Network. To help you determine whether your financial institution may be able to receive Instant Withdrawals, The Clearing House and the Federal Reserve publish lists of financial institutions that participate in the RTP® network and the FedNow® Service, respectively. A Betterment Checking account is not an Eligible Linked Account; transfers from Cash Reserve to Betterment Checking can be made as Same-day Transfers, as described in Section 3.

Instant Withdrawals cannot be cancelled, stopped, or reversed once sent. You are responsible for the accuracy of your Eligible Linked Account information and for authorizing each Instant Withdrawal, and none of the Betterment Entities will have any obligation to recover funds or any liability for any loss arising from an Instant Withdrawal sent in accordance with your instructions.

Your financial institution that holds your Eligible Linked Account determines when funds are available, and no Betterment Entity is responsible for any delay by that financial institution in making funds available to you. If an Instant Withdrawal cannot be completed for any reason, Betterment may, in its discretion, cancel your withdrawal request or process it through the ACH system, in which case no Instant Withdrawal Fee will be charged.

2.2 Instant Withdrawal Eligibility and Limits

Instant Withdrawals are available to (1) retail clients served on the Betterment platform, and (2) advised clients served by third-party advisors on the Betterment Advisor Solutions platform (collectively, “eligible clients”). Even if you are otherwise an eligible client, Instant Withdrawals will not be available to you if:

1. you have made a deposit or other transfers to your Betterment account within a certain period of time preceding your withdrawal request; or
2. you have a securities-based line of credit (“SBLOC”) secured by assets held in your Betterment account.

Additionally, Betterment determines whether Instant Withdrawal functionality is available at the time of each withdrawal request. Instant Withdrawals may only be made from your individual or joint Cash Reserve account to an Eligible Linked Account, and availability may depend on other factors, including but not limited to: your account balance; the amount of the withdrawal, including relative to your account balance; other holds on your account; recent changes to your account, profile, login credentials, or Eligible Linked Account; the results of Betterment’s risk and fraud reviews; the funds available in the Instant Withdrawal Facilitation Account; and the availability of the Instant Payment Networks and of the systems of the financial institutions involved. Some of these factors may not be visible to you and may change from one withdrawal to the next.

The amount of an Instant Withdrawal may not exceed the lesser of (i) $50,000 per legal account per day and (ii) your available Cash Reserve balance (not including any Transfer Cash), and both amounts less any fees or other amounts owed to the Betterment Entities with respect to your account (for example, Betterment advisory fees, any applicable Instant Withdrawal fee, or amounts subject to recovery for returned deposits or promotional credits).

Betterment may change the criteria for eligible clients and the conditions for availability of Instant Withdrawals at any time in its sole discretion.

2.3 Fees Applicable to Instant Withdrawals

Betterment Securities charges a fee of 1.5% of the withdrawal amount to facilitate each Instant Withdrawal, subject to a $1.00 minimum and a $50.00 maximum (the “Instant Withdrawal Fee”), which is deducted from the withdrawal amount. The Instant Withdrawal Fee is waived for Betterment Plus retail clients (enrolled in and eligible for Betterment Plus under the Betterment Plus Terms & Conditions) and for advised clients of certain third-party advisors on the Betterment Advisor Solutions platform. Betterment Securities may change the Instant Withdrawal Fee at any time in its sole discretion without notice to you.

The financial institution that holds your Eligible Linked Account may charge you fees for receiving payments, and none of the Betterment Entities is responsible for any such fees.

3. Same-day Transfers

3.1 Description of Same-day Transfers

Same-day Transfers allow you to make same-day transfers between your Betterment Checking and Cash Reserve accounts, between your joint and individual Cash Reserve accounts, or between your cash goals within your Cash Reserve account (collectively, “Same-day Eligible Accounts”).

Same-day Transfers are not sent through an Instant Payment Network. Instead, Same-day Transfers will allow nbkc through Betterment Financial to give same-day credit to your Betterment Checking account when transferring funds from your Cash Reserve account so that you can use your funds more quickly. Same-day Transfers will also allow Betterment and Betterment Securities to give same-day credit to your applicable Cash Reserve account when transferring funds from your Betterment Checking account or other Cash Reserve accounts so that you benefit from additional days of accrued interest relative to a transfer via the ACH system. As described below, certain features of Cash Reserve will be unavailable from the time the Same-day Transfer completes until Betterment’s settlement process is completed.

3.2 Same-day Transfers Eligibility and Limits

Same-day Transfers are only available for transfers of funds between Same-day Eligible Accounts. When initiating a Same-day Transfer, you must have sufficient funds available in your designated Same-day Eligible Account from which the transfer is to be made.

Same-day Transfers have a $10 minimum dollar transaction amount and Same-day Transfers between Betterment Checking and Cash Reserve accounts are subject to an aggregate daily transaction limit per client, which limit is subject to change by the Betterment Entities at any time in their discretion. Your daily limit will reset each day at 12 A.M. Eastern Time. You acknowledge that Same-day Transfers between your Betterment Checking and Cash Reserve accounts in excess of the daily transaction limit or transfers to external accounts (other than Instant Withdrawals) will be facilitated using the ACH system and will typically take 1-3 business days to complete.

In addition, the total amount of Same-day Transfers between Betterment Checking and Cash Reserve accounts among all Betterment clients on a daily basis is limited under the terms of Betterment Financial’s arrangement by nbkc. The daily net transfer amount may not exceed Betterment Financial’s overall account limit in its program accounts. When the total amount of net transfers for the day exceeds this limit, Same-day Transfers between Betterment Checking and Cash Reserve accounts will be unavailable, and such transfers will be facilitated using the ACH system and will typically take 1-3 business days to complete, which you can review in your Betterment online interface before initiating the transfer.

3.3 Fees Applicable to Same-day Transfers

Betterment does not charge a fee for Same-day Transfers. Betterment may change this at any time in its sole discretion without notice to you.

4. Account Ownership and Authority

You represent and warrant that you are either the sole owner or a joint owner of each account involved in an Expedited Transfer and that you have all necessary legal right, power and authority to transfer funds between such accounts. If you are a joint owner of any such account, you represent and warrant that you have full authority, acting individually and without notice to any other account owner, to deal with the Betterment Entities as fully and completely as if you were the sole account owner (including without limitation to withdraw or deposit any amount of funds from an such account), and the Betterment Entities may act on your instructions regarding such accounts without liability to other account owners.

5. No Guarantees

You understand and agree that neither the Betterment Entities nor any other persons make any guarantees regarding the availability of Expedited Transfers at any particular time or for any particular transfer. You understand that some elements necessary to complete an Expedited Transfer are not within the control of the Betterment Entities and the Betterment Entities are not responsible for the operation of those elements. The Betterment Entities may delay or reject any requested Expedited Transfer for no reason or any reason, including but not limited to, customer transaction ineligibility, program or facilitation account capacity, network unavailability, insufficient funds, failed risk and fraud reviews, software malfunctions, or legal or regulatory reasons. The Betterment Entities may terminate one or both of the Expedited Transfer services at any time in their sole discretion without prior notice to you. You agree that the Betterment Entities will have no liability to you or any other person for any loss, damage or other harm caused by or arising out of any such delay or refusal to process an Expedited Transfer.

6. Transaction Reviews

Prior to the completion of any Expedited Transfer, Betterment will review the transaction(s) and assess whether the transactions are consistent with applicable laws, rules, and regulations and these Terms and Conditions. Betterment may delay or “hold” your transfer request based on its review and at its discretion.

7. No Unlawful or Prohibited Use

As a condition of using Expedited Transfers, you represent and warrant that you will not use Expedited Transfers for any purpose that is unlawful or is not permitted, expressly or implicitly, by these Terms & Conditions, by the Betterment Client Agreements, the terms and conditions governing your applicable accounts, or by any applicable law or regulation. You further warrant and represent that you will not use Expedited Transfers in any manner that could damage, disable, or impair the Expedited Transfers service or other Betterment services. In cases of fraud or theft by you acting alone or in concert with others, or in any other circumstances described in the Betterment Client Agreements, the Betterment Entities may exercise a right of set-off for the discharge of any fees, monies, or other obligations owed to the Betterment Entities as further described in the Betterment Client Agreements.

8. Deposit and Withdrawal Procedures

With respect to Expedited Transfers from your Cash Reserve account, you will instruct Betterment, which will instruct Betterment Securities acting as your agent. With respect to Same-day Transfers from your Betterment Checking account, you will instruct nbkc through Betterment Financial, which acts as your agent.

For any Expedited Transfer request from Cash Reserve, Betterment will review the request to confirm the transfer is eligible.

• If the request is an Instant Withdrawal, Betterment will instruct Betterment Securities to credit the Instant Withdrawal Facilitation Account with the full withdrawal amount and debit your Cash Reserve balances at one or more Program Banks in the same aggregate amount, and to send the withdrawal amount, less any applicable Instant Withdrawal Fee payable to Betterment Securities, from the Instant Withdrawal Facilitation Account to your Eligible Linked Account through an Instant Payment Network.
• If the request is a Same-day Transfer to Betterment Checking and the transfer is eligible, Betterment Financial will instruct nbkc to credit your Betterment Checking account and debit Betterment Financial’s program account at nbkc (“Betterment Checking Program Account”). nbkc will take such actions, and Betterment will instruct Betterment Securities to debit your Cash Reserve account and credit Betterment Financial’s program account in its Cash Reserve structure (“Betterment Cash Reserve Program Account”).

For a Same-Day Transfer request from Betterment Checking to Cash Reserve, once the transfer is confirmed eligible, Betterment Financial will then instruct nbkc to debit your Betterment Checking account and credit the Betterment Checking Program Account. nbkc will take such actions, and Betterment will instruct Betterment Securities to credit your Cash Reserve account and debit the Betterment Cash Reserve Program Account.

9. Cash Reserve Interest Allocation

Betterment determines the interest allocated to your applicable Cash Reserve account as of 12 A.M. Eastern Time each calendar day (the “Interest Allocation”). Betterment will include Same-Day Transfer deposits into Cash Reserve that occurred prior to 12 A.M. Eastern Time in that day’s Interest Allocation. Funds withdrawn through an Instant Withdrawal will earn interest through the calendar day before the Instant Withdrawal is completed. You understand that the Interest Allocation is the final determination of interest entitlement and your official position as of the end of each calendar day, which will be reflected on your client statement.

10. Cash Reserve Funding Allocation

Expedited Transfer requests to or from Cash Reserve accounts completed in Betterment’s interface prior to 1:00 P.M. Eastern Time on business days (the “Funding Allocation”) will facilitate the record transmission to Cash Reserve program administrators and fund money movements into and from the Program Banks, as described in the Cash Sweep Addendum to the Betterment Client Agreements. To facilitate Instant Withdrawals, Betterment may adjust the allocation of Clients’ balances between the Instant Withdrawal Facilitation Account and other Program Banks, including by allocating other Clients’ balances to or from the Instant Withdrawal Facilitation Account. These adjustments do not change any Client’s total Cash Reserve balance and will be rebalanced at the subsequent Funding Allocation or Interest Allocation. Notwithstanding your entitlement to interest determined at the daily Interest Allocation, you understand that certain features of Cash Reserve described below may be unavailable from the time of your Expedited Transfer until the next Funding Allocation.

11. FDIC Insurance

With respect to Cash Reserve, you understand that once a Funding Allocation is completed on a business day, the amount of funds available in each Program Bank and eligible for FDIC insurance is set until the following Funding Allocation. Expedited Transfers may occur after the Funding Allocation. You understand that Program Banks may be unable to provide you with FDIC insurance up to the Cash Sweep Program limits on the amount of your funds following an Expedited Transfer until the subsequent Funding Allocation.

12. Program Bank Exclusions and Cash Reserve Interest Rate

With respect to Cash Reserve, you acknowledge and agree that as a condition of an Expedited Transfer, Betterment may be unable to honor your exclusion of a Program Bank from the time of the completion of the Expedited Transfer until the subsequent Funding Allocation, at which point your exclusion will be honored. You agree that the Betterment Entities will have no liability for any loss, damage or other harm caused by or arising out of any such inability to honor your request to exclude one or more Program Banks prior to the subsequent Funding Allocation.

The annual percentage yield ("APY") on funds held in Cash Reserve represents the weighted average of the APY on deposit balances across Program Banks. The APY is variable and subject to change daily. The APY available to you may be lower if you exclude a Program Bank as ineligible to receive deposits. You acknowledge and agree that as a condition of an Expedited Transfer, the APY available to you may be lower if you exclude a Program Bank regardless of whether Betterment is able to honor your exclusion from the time of the completion of the Expedited Transfer until the subsequent Funding Allocation.

13. Modification

The Betterment Entities may modify these Terms & Conditions at any time upon notice to you, which may be electronic, by means of a letter, an entry on your Betterment Securities brokerage account statement via Cash Reserve, an insert to your Betterment Securities brokerage account statement via Cash Reserve, or by other means. The current Instant Withdrawals and Same-day Transfers Terms and Conditions will be available on the website, at http://www.betterment.com/legal/instant-withdrawals-sameday-transfers.