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Introduction


Automated Sweeps are useful for automating and optimizing daily cash positioning and overnight investing and/or borrowing. Sweeps automatically transfer funds between a deposit account and an investment or a commercial line of credit.

Sweep processing runs once daily, after all other transactions have posted. Sweep transfers are driven by a preset target balance for the deposit account. If the available balance is above the target balance, a sweep transfer automatically debits the account and funds an investment or pays down a loan. Conversely, if the available balance in the deposit account is below the target balance, a sweep transfer automatically liquidates some of the investment* or draws on the loan to credit the account and restore the target balance.

As a result, the target balance is automatically maintained in the deposit account and excess cash is put to work elsewhere. This can provide for increased earnings and/or reduced interest expense as well as overdraft avoidance*. Because the process runs at the end of day, it is more efficient than what can be accomplished by manual cash positioning and investing / borrowing at some point in the middle of the day.