Sweep Accounts

A service that provides daily automatic transfer (i.e., sweeping) of demand deposit balances into a collateralized investment account. The primary benefit of this service is that it eliminates non-earning, idle cash balances. The bank and the customer agree on the minimum balance to be kept in the demand deposit account to cover checks and compensate the bank for services, TARGET BALANCE. Balances above the minimum are automatically transferred every night to a short-term investment account, REPURCHASE AGREEMENT.

The repurchase agreements are collateralized by securities that are backed by the full faith and credit of the United States Government, such as, Government Agencies.

The Benefits of a Sweep Account
A Business Checking with a Sweep Account provides many valuable benefits, including:

• Transfers are made automatically to and from your checking account
• Idle funds are swept into a short-term investment account, maximizing the return on cash balances
• Balances in the Sweep Account are pledged with Government securities
• The Sweep Account fee can be applied to the Earnings Credit
• The Earnings Credit is calculated on Ledger balance
• There is no fee for a monthly Profitability Analysis
• Sweep Accounts are less labor intensive than transferring funds manually between accounts
• Combined statements are available for easy record keeping
• Seasonal customers can stop Sweep Account and reconnect for a $25.00 fee

For more information on Sweeps, contact our Business Development Team.