| 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. |
Sweep Account
A bank account that, at the close of each business day, automatically transfers amounts that exceeds (or falls short of) a certain level into a higher-interest earning account.
Investopedia Commentary
In a sweep program, a bank's computers analyze customer use of checkable deposits and "sweep" funds into money market deposit accounts.
The purpose is to provide the customer with the greatest amount of interest with the minimum amount of personal intervention. That said, sweep accounts were originally devised to get around an old government regulation that prohibited banks from offering interest on commercial checking accounts.
Related Links
Money Market Tutorial
Getting To Know The Money Market
See also: Account, Asset Management, Checking Account, Money Market Account