Increase investment and interest income
Sweep Services, offered to all business checking customers, lets your business optimize its use of funds, so you gain maximum interest and/or easily reduce debt. The service automates transfers between accounts. Fees vary based on the type of sweep utilized. We offer four types of Sweep Services:
Zero Balance Sweep Account
A Zero Balance Sweep transfers funds from a primary checking account into other deposit accounts to expedite the collection and retention of funds for various purposes. For example, some customers sweep deposits to fund payroll activities.
Investment Sweep Account*
The Investment Sweep Account lets you earn interest on your excess balances by investing in Overnight Repurchase Agreements. Suitable for accounts with balances routinely higher than $100,000, Overnight Repurchase Agreements are secured by government securities. Interest is paid monthly at a variable rate.
Money Market Sweep Account
The Money Market Sweep Accounts allows excess balances in your checking account to be invested overnight into your money market account to optimize your earnings. When your checking account balance falls below your target balance, funds in the linked money market are automatically moved to your checking account to cover all checks paid and restore the target balance.
By law the number of sweeps from the money market account to the checking account is limited to six per statement cycle. On the sixth sweep, all funds in the money market account, less the $1,000 minimum balance, will be transferred out of the money market and deposited into the checking account. And after the sixth sweep, all sweep activity is suspended until the start of the next statement cycle.
Line of Credit Sweep Account
With a Line of Credit Sweep Account, you can reduce interest costs on your line of credit by using excess checking account deposits, for example, to pay down the amount owed on your revolving line of credit. In addition, this arrangement protects your business from potential balancing headaches. If your regular operating account experiences a shortfall, funds are automatically shifted from your revolving line of credit into your regular operating account without any manual work by you or your staff members.
We welcome the opportunity to help you make sound decisions about which business banking products will benefit you. Contact our business banking advisors today!
*Investment Sweep Accounts are not insured by the FDIC.