What is Sweep Account?
Sweep Account A bank account that automatically transfers (sweeps) amounts above or below a certain threshold into a higher interest-bearing investment or to cover shortfalls, optimizing liquidity and returns for account holders.
Source: CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework
How is “Sweep Account” Used in Practice?
Corporations use sweep accounts to maximize daily interest by automatically transferring surplus cash into money market funds each night.
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Who Needs to Know This Term?
- Financial Analysts
- Bankers
- Traders
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What is Sweep Account?
A bank account that automatically transfers (sweeps) amounts above or below a certain threshold into a higher interest-bearing investment or to cover shortfalls, optimizing liquidity and returns for account holders.
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