Gramm-Leach-Bliley Act, which allowed financial institutions to offer both banking and investment services for the first time since at least the Great Depression.
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Sweep accounts, whether for business or personal use, provide a way to ensure money is not sitting idly in rebate dictionary meaning a low interest account when it could be earning higher interest rates in better liquid cash investment vehicles.
Depending on the institution and investment vehicle, the sweep process is generally set daily from the checking account, while the return of funds can possibly experience delays.Expanded Sweep Account Views.If the balance ever dips below the threshold, the funds are swept back into the checking account from the investment account.Related Terms money market account (MMA) money market fund, see All Related Terms popular Terms In Brokerages low gearing over-trading tally sheet above the line equivalent #.What is a 'Sweep Account a sweep account is a bank account that automatically transfers amounts that exceed, free pizza coupons pizza hut or fall short of, a certain level into a higher interest-earning investment option at the close of each business day.Sweep accounts were needed historically as federal banking regulations prohibited interest on checking accounts.Link to this page: a href"m/Sweepaccount" Sweep account /a.
Businesses and individuals need to keep an eye on the costs of sweep accounts, as the benefit from higher returns from investment vehicles outside the checking account can be offset by the fees charged for the account.
Many brokerages or banking institutions charge flat fees, while others charge a percentage of the yield.
Or such other Controlled Accounts as agreed to in writing by Collateral Agent, in each case, so long as each such account is subject to a Controlled Account Agreement in favor of the Collateral Agent in the form attached hereto as Exhibit B-2 or such.
Security and Pledge Agreement, sweep Accounts means, collectively, each of account number, held at Sovereign Bank,.A.Sweep account, account providing that a bank invest all the excess available funds at the close of each business day for the firm.Verify Now, yOU ARE here Moneycontrol Bank Deposits Glossary, visit the App Store to see all our apps: Network 18 Sites.Individuals are more likely to have sweep arrangements with their brokerage firm to handle investment earnings.When money is placed into the account, it is automatically placed into a money market account, which carries a higher interest rate than normal checking or savings accounts.