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Sweep Account

Enables your business to automatically transfer excess cash funds to an interest bearing account on a daily basis, utilizing a sweep point designed to minimize your business checking account cost. The funds are swept to a repurchase agreement. While the funds in a repurchase agreement are not insured by the FDIC, the customer is a secured creditor of the bank.

Sweep accounts, used in conjunction with lines of credit and repurchase agreements, allow the Iowa Savings Bank to assist a business in managing volatile cash positions.

Repurchase agreements are short term instruments offered by the Iowa Savings Bank whereby the business is able to earn interest on excess funds.  While the funds in a repurchase agreement are not insured by the FDIC, by using this instrument, the customer becomes a secured creditor of the bank.

A line of credit can then be used to cover those short periods of time in which funds are needed to purchase inventory or supplies.

With a sweep account, the business is able to earn interest on excess funds and minimize costs when funds are needed.