sweep account

Sweep Account

A bank account that, at the close of each business day, automatically transfers amounts that exceeds (or falls short of) a certain level into a higher-interest earning account.

Notes:

In a sweep program, a bank's computers analyze customer use of checkable deposits and "sweep" funds into money market deposit accounts.

The purpose is to provide the customer with the greatest amount of interest with the minimum amount of personal intervention. That said, sweep accounts were originally devised to get around an old government regulation that prohibited banks from offering interest on commercial checking accounts.

See also: Account, Asset Management, Checking Account, Money Market Account

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Sweep account

Account providing that a bank invest all the excess available funds at the close of each business day for the firm.

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sweep account

See asset management account.