What happens during an optimization?

Max is designed to help you maximize the interest that you earn while staying fully FDIC-insured. The process of helping you optimally reallocate your cash among your accounts is called an optimization.

Max’s optimization helps you “waterfall” your cash across your accounts in an optimal manner, so you can fill your highest-yielding account up to the FDIC insurance limit (or any other limit you have set) and then move any excess funds to your next-highest-yielding account, and so on until all your cash has been allocated. Lower-yielding accounts are kept funded with a minimum balance of $1.00 so that they remain open and can be ready to receive funds when their rates become more competitive.  

During each optimization, Max first retrieves current balance information for each of your high-yield savings accounts and your central checking account, (either Max Checking or your existing checking account.)

Max then compares how your funds are allocated vs. Max's optimal allocation model, taking into account current interest rates, FDIC insurance limits (or any other per-account limits you have set), and your Target Balance. If any of your cash could be more efficiently allocated, Max will propose an optimal reallocation of cash, and then send your funds transfer instructions to your banks on your behalf.

• If a higher interest rate is available to you, funds will flow from your lower-yielding savings account to checking, and then from checking to your highest-yielding savings account. 
• If your checking account balance exceeds your Target Balance at the time of an optimization, Max will help you sweep excess cash into your high-yield savings accounts, where it can earn more.
• If your checking balance is lower than your Target Balance, Max will help you move your funds from your lowest-yielding savings accounts back into your checking account.

You can track the status of your optimization by clicking "Optimizations" at the top of your Max Dashboard (or, if you’re using a mobile device, via the menu bar). Select the date of your most recent optimization and you will then see a diagram illustrating each of the requested funds transfers, as pictured below:

During the funds transfer process, the portion of your funds that are being transferred may be unavailable for 1–3 business days as they move from one bank to another via the ACH network. All funds transfers are managed by your existing banks; Max never takes custody of your funds.