US News recently published an article titled, "Sweep Accounts: What They Are and How to Open One." It states, "Bank savers are on a roll these days, with many certificates of deposit, money market accounts and high-​yield savings accounts offering around 5% returns due to a high-​interest-​rate environment. The rush for a competitive yield has enveloped the sweep account, which has operated in a quiet, under-​the-​radar fashion off Wall Street'​s beaten path for decades. Sweep accounts automatically steer cash into bank or brokerage money market accounts that can earn ample interest at the close of each business day. Instead of earning zero dollars, a sweep account enables savers and investors to earn yields on funds that would otherwise lose value to inflation." The piece says, "With competitive money market rates, a sweep account offers a profitable safe haven for cash funds parked overnight. On the downside, fees may cut into those sweep account gains, and returns in money market accounts -- like any asset -- aren'​t always consistent and depend on favorable interest rates. Here'​s a closer look at sweep accounts, how they work and whether they'​re a no-​brainer for income-​seeking bank and brokerage investors." US News adds, "Sweep accounts automatically move, or '​sweep,' any cash that exceeds the set limit in your bank or brokerage account into an investment account. They can be used for individual or business banking and brokerage customers. 'This way, your extra money earns interest and doesn'​t just sit there idling,' says Dayten Rynsburger, chief revenue officer at lending platform Niche Capital. '​Investors like these accounts -- they think of them as '​automated investing.'"

Your Name:
Your Email:
Recipient Email(s):

Use a comma or a semicolon to separate

Please retype symbols from the image:

Optional Message

Daily Link Archive