Sweep accounts allow businesses to get higher returns on cash that might otherwise be in checking accounts. CalBank Sweep accounts require you to maintain a minimum balance. We will then “sweep” the account (usually daily) and remove any funds in excess of the balance minimum.
These funds are automatically invested in an account you select. When your checking account drops below its required balance, we then automatically “sweep” back enough cash to bring your account up to its required minimum balance.
Benefits of maintaining a sweep account includes:
- Ability to invest smaller amounts of funds on a regular basis
- CalBank Sweep Account is convenient because extra funds are automatically moved into an investment account without requiring you to make the transfer yourself
- Liquidity as you are offered same-day access to the invested funds
- Access to a variety of investment instruments to select from
- Benefit of earning returns from your funds
- This service is free
Because most SMEs don’t have the time or capital to reap the benefits of more profitable investments, sweep accounts make a lot of sense