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Sweep Types

There are two basic types of investment sweeps, overnight investments and open-term investments.

  • Overnight investment sweeps automatically invest excess balances and return all principle and earnings the next business day. KeyBank offers one overnight investment sweep:
    • Automated Repurchase Agreement Sweep – Repo Sweeps invest in securities that are direct obligations of the U.S. Government, or those that are fully guaranteed as to principal and interest by the U.S. Government. Investments are collateralized at 100% of market value. Minimum investment: $25,000. Investment increment: $2,500. Earnings are classified as investment income.

      *Repo Sweep only serves to invest excess funds; it does not fund the deposit account to cure deficits.

  • Open-term investment sweeps do not necessarily return invested funds to the deposit account each day. Invested funds remain invested until they are needed to restore the target balance in the deposit account. KeyBank offers two open-term investment sweeps:
    • Automatic Investment Sweep — Automatic Investment Sweep invests in government money market mutual funds managed by Federated® Investors. Investments are made on a next-day basis. Investment increment: $2,500. Earnings are classified as investment income.
    • Deposit Sweep (Commercial / Public ) — Deposit Sweep invests in an interest bearing KeyBank deposit accounts that is only accessible through the sweep mechanism. Earnings are classified as interest.
  • Credit Sweep – Credit Sweep links a deposit account to a commercial line of credit. Excess cash automatically sweeps to pay down the loan balance (until it reaches $0). Deficits in the deposit account are automatically cured by sweeps that draw on the loan (up to the credit limit).