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 account balance. If any of your cash could be more efficiently allocated, Max will propose to you an optimal re-allocation of cash, and then send your funds transfer instructions to your banks on your behalf.
A typical optimization occurs in two steps:
- If your checking account is below the target balance you have set for your checking account at the start of your optimization, Max will propose that you transfer funds from your lowest yielding online savings accounts to your checking account. These transfers typically take 2-3 business days for your banks to complete.
If your checking account has funds in excess of the target balance you have set for your checking account, Max will propose that you transfer funds from your checking account to your higher-yielding online savings accounts. These transfers typically take 2-3 business days for your bank to complete.
You can track the status of your optimization by clicking on the words "Optimization in Progress", visible directly below your Total Optimized Savings balance 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 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.