The Repo Sweep account provides daily automatic investment of excess collected funds in your Business Checking account, with the extra benefit of collateralization of the excess balances invested.
By linking your Business Checking account to a Repo Sweep, all activity (deposits, checks and other transactions) flows through your account, resulting in a net investment position at the end of each business day. The last transaction of the day automatically transfers the excess collected balances in the checking account to your Overnight Repurchase Agreement for investment. As funds are needed to cover items presented for payment in your checking account, such as checks or outgoing wire transfers, balances are automatically transferred from the Repo Sweep account to the checking account in order to pay those items.
Features & Benefits
Eliminate the time spent analyzing your cash flow, reconciling, monitoring and transferring funds in order to determine your daily investment position
Establish a target collected balance based upon your daily account balance and activity
Funds invested in your sweep account are not deposits and, therefore, Not FDIC Insured, but are collateralized by bank-owned government securities
Daily confirmation notices of the assigned collateral and investment balances are sent to account holders
Simple interest is accrued daily and paid monthly