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Bank Deposit Sweep Program

By Hafsa Binte Omar

A bank deposit sweep program is a feature offered by some banks and financial institutions, which automatically transfers excess or “sweeps” your funds from your standard checking account into another account that typically earns higher interest. Typically, your money can be moved back to the original account if needed.

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2. Cash Sweep Options - Wells Fargo

https://www.wellsfargo.com/investing/cash-sweep/
The Standard Bank Deposit Sweep consists of interest-bearing deposit accounts at two or more Program Banks affiliated with Wells Fargo Advisors (“Affiliated ...

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  • How does a bank deposit sweep program work?

    A bank deposit sweep program moves excess funds from your regular checking account to an investment product such as a money market account or certificate of deposit (CD), where your money can earn higher interest rates than it would in a checking account. The invested funds are available for withdrawal if needed.

    Who is eligible for a bank deposit sweep program?

    Most banks and credit unions offer bank deposit sweep programs to customers with accounts in good standing. Generally, you must have direct deposits set up on the existing checking accounts to be eligible for this feature.

    How much can I transfer from my checking account into the other accounts?

    Each financial institution will have specific rules regarding transfers, but typically you can transfer any amount over $500 or any excess amount in the account above that figure, whichever is greater.

    Is there any cost associated with a bank deposit sweep program?

    Most banks do not charge any fees for using the service; however, some may have charges associated with certain types of investment products such as CDs or money market accounts. It’s important to check with your individual institution before enrolling in the service.

    Conclusion:
    Bank Deposit Sweep Programs are a convenient way to increase earnings on excess cash while having liquidity readily accessible if needed. They often come at no cost and offer various investment options depending on the financial institution offering them. Financial institutions should always be researched thoroughly prior to initiating services like this so that you understand all applicable policies and costs associated with them.

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    Hafsa Binte Omar

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