A brokerage firm or bank may automatically transfer - or sweep - a client's uninvested or surplus funds into a designated account.
For instance, at the end of each business day, a bank might sweep a business client's surplus cash from a checking account into a high-yield money market or savings account, where the money earns interest over night. The next morning, the bank would make these funds again available to the customer.
Individuals are more likely to have sweep arrangements with their brokerage firm to handle investment earnings.
Yahoo Finance - Cite This Source - This Definition
- Account balance, Asset Management Account, Check hold, Checking account, Commercial bank, Correspondent, Direct deposit, Electronic bill payment, Electronic funds transfer, Federal Reserve Fedwire, Float, money-market account, regulation d, Virtual bank
All > Business > Finance > Personal Finance