Repurchase Sweep Account
The Commercial Sweep Repurchase Account is a simple, automatic way for you to save valuable time in managing your company’s cash position while earning higher returns on your daily operating cash. The Commercial Sweep Repurchase Account is not FDIC insured but is collateralized by U.S. securities, which are fully guaranteed by the United States Treasury, or a government agency.
- A sweep arrangement is designed to give you the opportunity to automatically invest excess funds from your commercial checking account.
- Excess funds are invested in a Sweep Repurchase Account which offers a higher return on your daily operating cash.
- The funds invested in a Sweep Repurchase Account are fully collateralized by government securities.
- A combined monthly statement will be provided detailing all transactions for your commercial checking account and Sweep Repurchase Account.
- In addition, the bank will provide each day a written confirmation via fax, e-mail, or U.S. Post Office describing the specific government security that was selected as collateral for your Sweep Repurchase Account, and include your Sweep Repurchase Account balance.
Here’s how it Works
- With a Sweep Repurchase Account, you continue to write checks against and make deposits to your commercial checking account just like you always have. The difference is that excess funds are automatically transferred, or swept, on a daily basis, into your Sweep Repurchase Account.
- Funds remaining in your commercial checking account consist of a pre-determined “target” balance, which is a compensating balance. This is used to partially or fully offset account maintenance and activity fees.
- Each day, if the total amount of checks presented for payment exceeds the amount of any deposits, funds are automatically swept from the Sweep Repurchase Account back to the commercial checking account to cover the checks presented and to return the commercial checking account to the target balance.
- In addition to the regular commercial checking account fees, a monthly Sweep Repurchase Account fee will also apply.
- The Sweep Repurchase Account can only be accessed through automatic transfers.
NOTE: Interest rates on Sweep Repurchase Accounts are determined by the bank and are subject to change on a daily basis.
Sweep Repurchase Accounts are secured obligations of the bank. Any amounts placed in Sweep Repurchase Accounts are not deposits of the bank, are not insured by the FDIC, and are not guaranteed in any way by the United States Treasury, or a government agency
Investment products offered through Brookhaven Bank are NOT FDIC INSURED and are NOT deposits or other obligations of, or guaranteed by, Brookhaven Bank . An investment in a sweep repurchase account agreement involves investment risk including possible loss of the principal amount invested.