Sweep accounts

Make idle, excess cash work harder

Maximize investment earnings, minimize idle balances, and reduce interest expense so you can improve cash flow management with sweep account services.

What is a sweep account?

A sweep account moves excess cash out of your checking account into a place where it can earn more, or brings it back when you need it, so your money is always working without you having to manage it.

What are the benefits of a sweep account?

Sweep accounts are best for businesses or organizations with excess cash sitting idle in accounts that want to:

• Maximize interest earned
• Keep account balances funded for daily expenses
• Optimize debt reduction
• Avoid manually moving money back and forth

Types of sweep accounts

• Investment sweep: Automatically transfers checking account balances above your designated target balance into an investment option that earns a competitive rate of return. If your account balance falls below the target amount, funds are redeemed from the investment and transferred back into the checking account to cover transactions.

• Loan sweep: Helps minimize borrowing costs by drawing funds from your Regions Line of Credit only when needed to cover disbursements and automatically applying excess funds to reduce outstanding balances as soon as they become available.

  At the end of each business day, your checking account is evaluated to determine whether additional funds are required to cover disbursements or whether available balances can be used to pay down the line of credit.

• Combination sweep: Combines both Investment and Loan Sweep services to help maximize investment earnings while minimizing interest expense.

  At the end of each day, your checking account is analyzed:

  • If funds are needed, the system first uses available investment balances, then accesses your line of credit if necessary.
  • If excess funds are available, they are applied toward any outstanding loan balance first, with any remaining funds invested according to your selected Investment Sweep option.