Sweep 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.

Asset Management Account

An account at a bank or other financial institution that allows the account holder to place money for both banking and investment services. When money is placed into the account, it is automatically placed into a money market account, which carries a higher interest rate than normal checking or savings accounts. The account holder can then direct the money to various banking and investment services. Asset management accounts were allowed after the passage of the Gramm-Leach-Bliley Act, which allowed financial institutions to offer both banking and investment services for the first time since at least the Great Depression.

sweep account

Sweep account.

A brokerage firm or bank may automatically transfer -- or sweep -- a client's uninvested or surplus funds into a designated account.

For instance, at the end of each business day, a bank might sweep a business client's surplus cash from a checking account into a high-yield money market or savings account, where the money earns interest overnight. The next morning, the bank would make these funds again available to the customer.

Individuals are more likely to have sweep arrangements with their brokerage firm to handle investment earnings.

References in periodicals archive ?
The defendants named are Glen Galemmo, Queen City Investment Fund II, LLC, Queen City Advisors, LLC, Galemmo Investment Group, Queen City Investment Funds, Queen City Investments, Queen City Hedge Fund, AC Power Strategies Fund II, LLC, QC Power Strategies Fund Sweep Account, LLC, QC Power Strategies Fund, LLC, Sentinel Property Holdings, LLC, Glen Rock, LLC, Sentinel Strategy Fund, LLC, QFC, LLC, Midwest Hoops at SportsPlus, LLC, Midwest Hoops Sports Complex, LLC, Cincinnati Royals, Inc.
There is also a sweep account functionality and ACH origination.
With the repeal of Regulation Q, we were interested in eliminating the need for a third-party vendor sweep account, benefiting both the bank and the customer by consolidating two accounts and reconciliations into one account with interest.
Also set up a sweep account applying the extra cash on hand against lines of credit, reducing interest expense.
Sweep account investment options are available based on a company's needs.
8 (e), officially known as the Final Rule on Processing of Deposit Accounts in the Event of an Insured Depository Institution Failure and popularly known as the Failed Bank Rule, sets out the criteria for all sweep account options.
For cash that you might need soon, the solution is likely a sweep account.
Through the use of a sweep account, the excess funds can earn interest for the company.
The Bank, principal subsidiary of The Banc Corporation , announced today that it has introduced The Bank Cash Sweep Account.
They have conducted their Annual Commercial Banking Sweep Account Survey since 1991.
The BOZ sweep account worked well, the owners said.
For the most part, the sample of ATM banks is made up of large commercial banks that initiated sweep account programs during the 1990s.