A sweep account is an account set up in conjuction with one’s cash management activities where the funds are automatically managed between a demand deposit account and a secondary investment and/or loan account. Sweep accounts eliminate time-consuming cash management tasks by automatically transferring funds to reduce loan interest expense and/or earn interest income on excess cash, optimizing peaks in one’s cash flow.

Cash Management specializes in the following sweep options:

Repurchase Sweep Account

An investment account that allows a business to earn interest on excess cash. The rate is tied to the Fed Funds Rate. Funds in the sweep account are not covered under FDIC Insurance; rather they are fully collateralized by a designated security.

Investment Sweep Account

An investment account that allows a business to earn interest on excess cash. The rate of return is dependent upon the money market funds selected. There are four different money market funds maintained by Federated Investors to select from. Monies invested in Federated Investors money market funds are not covered under FDIC Insurance.

Revolver Sweep Account

Connect your Line of Credit to your Commercial Checking account to automatically satisfy unforeseen overdrafts or pay down your Line of Credit saving you time and interest expense on your loan.

Revolver Loan/Investment Sweep

A combination of the deposit and loan sweep products. When your Line of Credit is paid down and you have excess cash, funds are automatically invested in the product of your choice, either the Repurchase Agreement Sweep Account or the Investment Sweep Account.

For details on these Sweep Accounts and more, please contact our Business Banking Team at 1-888-730-0630.