What are Business Sweeps?

A sweep automatically transfers or “sweeps” funds from one account to a dividend-bearing account based on a certain balance threshold at the end of each business day.

Sweeps maximize an account’s dividend earnings while maintaining a set target balance. For example, a business can choose to have funds above a target balance in a business checking account swept into a business savings or business money market account at the end of the business day. If the next day the business checking account balance is below the target balance, the necessary funds will be swept from the business savings or business money market account into the business checking account at the end of the day.

Note: Business sweeps happen once a day at the close of business, not in real time. ACH transactions can occur at various times throughout the business day. If a business account does not have sufficient funds when an ACH transaction posts and does not have overdraft protection set up, the ACH transaction will be returned

A business sweep maintains a predetermined balance in the business checking account, by transferring funds to and from a higher dividend-earning account, such as a business savings or business money market.

Members determine what dollar amount that they want to keep in the business checking account; any funds that exceed that dollar amount will transfer to the secondary higher dividend-earning account at the close of business. If the balance in the business checking account is below the set amount at the end of the business day, funds will transfer back over from the higher dividend-earning account.

Sweeps automate financial management and allow Members to optimize the dividends they can earn, while limiting the risk of incurring overdraft fees. Sweeps are convenient for Members who may not have the time to constantly monitor their checking account.