Sweep Accounts
Sweep Options Include:
Automated Line of Credit (ALC)
ALC Sweep links a deposit account to a line of credit. The deposit account’s target balance is set by you, and collected balance funds above this balance are used to pay down the line of credit. If the ledger balance is below the target balance, funds are drawn from the line of credit.
Insured Cash Services (ICS) Demand Sweep
ICS Demand Sweep links a deposit account to an ICS Demand account. The deposit account’s target balance is set by you, and any collected balances above this target balance are swept to the ICS Demand account. ICS funds are placed with other federally insured financial institutions in increments under $250, 000 FDIC Insurance.
Business Investment Account (BIA)
BIA (aka: Repo) Sweep links a deposit account to a BIA. The deposit account’s target balance is set by you, and overnight collected balances over this balance are swept to the BIA. Securities are purchased with funds in the BIA pursuant to a daily repurchase agreement, then the principal is swept back to the deposit account with the accumulated interest swept back to the account on the last business day of the month.
Liquidity Sweep Account (LSA)
Liquidity Sweep links a deposit account to LSA. You set a target balance for the deposit account, and any collected funds above the targeted balance are swept to the LSA. Unlike BIA, LSA is an uncollateralized sweep. Being uncollateralized, LSA offers a higher interest rate compared to BIA. The LSA principal is swept back to the deposit account each day, and accumulating interest posts at the last business day of the month.
Zero Balance Account (ZBA)
ZBA Sweep links a deposit account to a ZBA(s) and at the end of posting each day funds above $0 are swept from the ZBA(s) to the deposit account. If the ZBA(s) is below $0, then funds are drawn from the deposit account. ZBA is protected by standard FDIC coverage.
