Funding accounts refer to financial accounts that you link to your Betterment account so that you can transfer money either to or from Betterment.

For instance, you may have a bank account at XYZ Credit Union that you want to link so that you can make a deposit into your Roth IRA at Betterment. Alternatively, you may be a retiree taking distributions from an IRA or (other retirement account) and want assets to transfer from your account at Betterment to your account at XYZ Credit Union.

Steps to Establish a Bank Link at Betterment

1. First, log in to your Betterment account. You should see a screen that looks something like this:

2. Next, on the far left-hand side of the page, scroll down and click on Settings.

3. Within the settings tabs, click on Funding accounts.

4. Then click on Connect a funding account to begin the processing for actually establishing a funding account link.

Do note that the options for different types of funding account links to add will depend on the types of accounts you have established at Betterment. You could see multiple options (e.g., individual cash reserve and investments, joint cash reserve and investments, checking, etc.). Unfortunately, currently, you do need to set up each link separately.

5. Once you click on the link to connect a funding account, then you should be prompted to complete a second-factor authentication process by either receiving a text message, receiving a phone call, or answering security questions. Choose the option that you prefer and complete the second-factor authentication process.

6. Once your authentication is complete, select Connect a new institution and click Continue.

7. The next step is one that can sometimes cause confusion. You should see two options. Connect instantly (in a large blue button) and Connect manually instead (1-2 business days).

I recommend trying to establish an instant connection first. The instant connection happens instantly (as the name implies) and also provides a more insightful connection because it will pass through information such as your account balance on a linked account.

A manual connection will require you to provide your bank account and routing number (you can find these at the bottom of a check) and then verify two micro-deposits that will be placed into your account within a few business days. This method works just fine, but, as mentioned above, you won’t have account balances passed through which is a nice perk of the instant connection. That said, the most common reason for not establishing an instant connection is that this type of connection is not supported for your bank or credit union (often smaller banks or credit unions may not be supported). In this case, you won’t have a choice and will only be able to establish an instant connection.

You can find out if your institution is supported by clicking the Connect instantly button. If your institution is not supported, then you should be re-directed to the manual connection. If you don’t get redirected for some reason, just follow these steps again and then select Connect manually instead (1-2 business days) when you see the image below.

See the section below for additional details on steps for both the Connect instantly method and the Connect manually instead (1-2 business days) method.

Process For Establishing An Instant Funding Account Connection

When establishing an instant connection, you insert your login credentials for the financial institution you are connecting to. This is a secure process. If you wish to learn more about how Plaid works, check out resources like this.

First, click the Get started button to begin the process.

Next, search for your financial institution. If you aren’t finding your institution immediately, then try some name variations. For instance, if you type in Cumberland County FCU nothing will come up. However, if you simply type in Cumberland County, then you should see that, in this case, the institution is in the system as Cumberland County Federal Credit Union. If nothing seems to be coming up based on the name modifications you have tried, also try going to your financial institution’s website and copying and pasting the URL. Sometimes you will find institutions that come up by website when they were hard to find by name.

If you can’t find your institution, click the Exit button, and then you should be redirected to a page that prompts you to input your information manually (jump ahead to the manual input section).

If your institution does show up, then click on your institution and you should be automatically advanced to the next steps.

At this point, the process will vary somewhat from one financial institution to another and will depend on the security options established at your financial institution. You’ll first put in your username and password, but, from there, you could also receive second-factor authentication codes, security questions, or other security prompts. Just follow the prompts on the screen specific to your institution.

Once your institution is connected, you will also be given the option to include link all eligible accounts or only those that you want linked. For instance, suppose you have a business checking account and a personal checking account that you can access through the same login. You may want to link your personal checking account but not your business checking account. This step is up to you.

You may also be prompted to select your default funding account. In this case, just select the account you would generally be using to transfer funds. As long as you bring the other account connections in, you’ll still have access to them and could make a modification for any particular transfer.

Process For Establishing A Manual Funding Account Connection

In the event that you have to establish a manual connection, you will simply be prompted to enter your bank account and routing number.

If you don’t know your bank account and routing number, you can often find this information either through your bank’s online login, by calling your bank, or at the bottom of a check if you are linking a checking account. Here’s an example of where you would find that information on a check. Also, if you go to Google and search for a phrase such as, Cumberland County Federal Credit Union + Routing Number, the top search results will generally have the routing number. Of course, the search results will not be able to tell you your account number.

Once you input your information, you will get a confirmation from Betterment that you should see two micro-deposits deposited into your bank account in 1-2 business days. Check your bank account over the following days, and once you see two deposits (each will be less than $1), you can log in to Betterment and confirm those transaction amounts. For instance, you might see transactions of $0.16 and $0.44, which would be the amounts you would enter into Betterment to confirm your account.

When you log in to Betterment, you should see the following:

Simply click Verify now, enter the information, and then you should be able to begin initiating transfers between your Betterment accounts and your eligible external accounts.