What are Business Sweeps?

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

Sweeps maximize an account’s interest earnings while still covering all withdrawals. For example, a business can choose to have funds 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 needs funds to cover withdrawals, the necessary funds are swept from the business savings or business money market account into the business checking account.

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 ever falls below the set amount, funds will transfer back over from the higher dividend-earning account.

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