If you consistently have excess cash balances in your business checking account, you may be missing out on significant earnings potential on these cash resources. With an automated investment sweep account, excess cash is automatically transferred into an investment vehicle at the end of each day.
A sweep account combines a business checking account with an investment account. It gives companies the ability to manage their daily cash position and maximize their earnings.
The beauty of a sweep account is that sweeps are daily and automatic - no manual intervention is required. When your checking account balance reaches a predetermined target balance, money is swept overnight from the checking account into an interest-yielding money market investment account. Funds are then swept back into the checking account as needed to cover presentments. As with any of our deposit accounts you will receive a detailed monthly statement reflecting balances and transfer activity.
These are similar to investment sweep accounts, except that money is swept from a line of credit into the checking account if the checking account balance falls below zero. Excess balances in the checking account are swept to the line of credit as a principle reduction, thereby reducing interest expense. The sweeps are automatic, with no account monitoring or manual intervention required.
Also check out our
Business Money Market and Certificates of Deposits
For further information regarding Cash Management Services, please call or visit your local Presidio Bank office.