sweep account

noun

1. Finance. a checking account from which money in excess of a specified amount is automatically transferred to another account or to an investment that earns a higher rate of return.

Example Sentences

The second option is a sweep account, in which a customer’s balance in excess of $250,000 is “swept out” every night to other IntraFi Network banks in smaller blocks.

From New York Times

The consensus was that since our money in SVB is in what’s called a cash sweep account — basically, an account where cash is swept into a fund with more interest but low risk — it was safe.

From New York Times

According to Crane Money Fund Intelligence, the average brokerage sweep account had a yield of 0.13 percent in December.

From New York Times

A $100,000 balance in a Schwab sweep account had a 0.06 percent yield in December.

From New York Times

“Brokerage firms have gone to charging zero commission on trades, but they can afford to do that by basically paying nothing on your sweep account,” said Mr. Cordaro, referring to the cash account where proceeds from trades are parked.

From New York Times