sweep account

American  

noun

1. Finance. a checking account from which money in excess of a specified amount is automatically transferred to another account or to an investment that earns a higher rate of return.

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Example Sentences

The second option is a sweep account, in which a customer’s balance in excess of $250,000 is “swept out” every night to other IntraFi Network banks in smaller blocks.

From New York Times • Apr. 1, 2023

According to Crane Money Fund Intelligence, the average brokerage sweep account had a yield of 0.13 percent in December.

From New York Times • Jan. 17, 2020

A $100,000 balance in a Schwab sweep account had a 0.06 percent yield in December.

From New York Times • Jan. 17, 2020

The latest gimmick is a so-called sweep account like Chase Manhattan's Chase One, where customers have to keep at least $7,500 in a checking account that pays 5.25%.

From Time Magazine Archive

You may be stuck earning a token amount in a forgotten bank savings account or brokerage sweep account.

From Time Magazine Archive