During each optimization, Max first retrieves current balance information for each of your accounts. Max then compares how your funds are allocated vs. Max's optimal allocation model, taking into account current interest rates, the FDIC insurance limits (or any other per-account limits you have set), and your target checking/brokerage account balance. If Max determines that your cash could be more efficiently allocated, Max sends instructions to your banks on your behalf requesting that they transfer funds between your accounts.
A typical optimization occurs in two steps:
- Funds flow from your lower-yielding savings account(s) into your checking/brokerage account, along the secure ACH links that you established when opening your online savings accounts.
- Once the funds transfers from the first step are complete, funds then flow from your checking/brokerage account out to your other savings account(s).
You can track the status of your optimization by clicking on the words "Optimization in Progress", visible directly below your Total Optimized Savings balance visible in the upper-right corner of your Max Dashboard. You can also click on "Optimizations" at the top of your screen, and then select the date of your most recent optimization. You will then see a diagram illustrating each of the 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 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.