Investment Sweep/Repurchase Agreement
The Investment Sweep/Repurchase Agreement is an efficient, automated way for you to maintain liquidity while earning interest income on your daily operating cash. With a bank Investment Sweep/Repurchase Agreement, you continue to write checks against and make deposits to your commercial checking account just like you always have. The difference is that excess funds are automatically transferred, or swept, on a daily basis into your Investment Sweep/Repurchase Agreement.
Features and Benefits
• Investments are available each business day to cover clearing checks or other banking requests
• Automatically invests excess funds from your commercial checking account
• Invested funds earn interest income on a daily basis
• Investment Sweep/Repurchase Agreement is fully collateralized by government securities based on daily market pricing
• Daily written confirmation is provided to designate your investment balance and the specific government securities that collateralize that investment
• Monthly statements detail all transactions for both your checking and investment sweep accounts
Interest rates on the Investment Sweep/Repurchase Agreement are determined by the bank and are subject to change on a daily basis.
The Investment Sweep/Repurchase Agreement is a secured obligation of the bank. Funds deposited in an Investment Sweep/Repurchase Agreement are not insured by the FDIC.
For more information, contact Jon Kolb in Treasury Managment at 847-277-8911 or email jkolb@barringtonbank.com.
