In a sweep program, a bank's computers analyze customer use of checkable deposits and free car contests ontario "sweep" funds into money market deposit accounts.
Many brokerages or banking institutions charge flat fees, while others charge a percentage of the yield.
Any transactions over the maximum number are subject to a separate fee.
The bank automatically invests those funds in an account you select.Sign up now Log in Contents Contents More meanings of sweep.31 m Likes 151 k Followers N/C Fans Cambridge University Press 2017.A business sets a minimum balance for gst home rebate bc its main checking account, over which any funds are swept into a higher interest investment product.How Sweep Accounts Work, a sweep account links a commercial checking account with an investment account, such as a money market account or stock fund.By contrast, most overnight investments require minimum amounts that are out of reach for most small companies.It automatically keeps the checking account balance at a preset target level, by transferring funds to or from the investment account as needed.A check is physical, legal contract that effectively represents a promissory note to pay the amounts indicated in numeric and written values, to the payee designated in the "pay to" section.Sweep accounts were needed historically as federal banking regulations prohibited interest on checking accounts.Businesses and individuals need to keep an eye on the costs of sweep accounts, as the benefit from higher returns from investment vehicles outside the checking account can be offset by the fees charged for the account.You may get a special deal or extra value for your business.Terms vary widely from bank to bank, so youll need to shop around.Youre limited to a specified number of transactions per account before you start incurring extra fees.Also found in: Dictionary, Thesaurus, Medical, Legal, Acronyms, Idioms, vouchers for school choice in texas Encyclopedia, Wikipedia.If the balance ever dips below the threshold, the funds are swept back into the checking account from the investment account.
Most sweep accounts require the business to maintain a minimum balance.
Cambridge dictionaries logo, follow us, english, contents.That said, sweep accounts were originally devised to get around a government regulation that limited banks from offering interest on commercial checking accounts.Expanded Sweep Account Views.Sweeps for Businesses, sweep accounts are a typical business tool, especially for small businesses that rely on daily cash flow but want to maximize earning potential on sitting cash reserves.Create and share your own word lists and quizzes for free!Sweeps for Individuals, sweep accounts for individual investors are typically used by brokerages to park money waiting to be reinvested such as dividends, incoming cash deposits and money from sell orders.Contents sweep verb (clean thesaurus: synonyms and related words sweep verb (move thesaurus: synonyms and related words sweep verb (WIN).Always make sure youll earn enough in interest to offset the banks fees otherwise, its not worth your while.Link to this page.The definition of a transaction is set by each bank (see the fine print of the account agreement).