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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

sweep account

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
Board member David Bianchi asked if the Bar could negotiate with one bank to provide a sweep account to any law firm that wanted it.
Brokerage firms note that money kept in a sweep account is insured up to $500,000 by the Securities Investor Protection Corp., a quasi-federal institution much like banks' Federal Deposit Insurance Corp., and that many investment firms add private insurance on top of that.
Here's how automated repurchase investment accounts work: At the end of each day, after all debit and credit transactions have posted, funds are automatically moved from a commercial checking account into the sweep account, which is collateralized and invested in U.S.
Murai has worked throughout his year as president to increase IOTA revenue and is active in the Miami-Dade County IOTA sweep account recruiting effort.
If a fund has liquidity issues, cash could be unavailable to settle trades in a sweep account."
The debtor maintained an operating account and a corresponding investment sweep account as its only bank accounts.
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.
Cash Management Access Accounts are essentially a brokerage account that holds investment assets and redirects un-invested money into a sweep account.
Also set up a sweep account applying the extra cash on hand against lines of credit, reducing interest expense.
S 360.8 (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.