Amegy Bank offers an overnight sweep service that automatically invests any excess funds in your commercial checking account. This investment solution provides you the ability to put your company’s excess funds to work effortlessly, while maintaining complete control over your daily liquidity needs.
The automated sweep service links your commercial checking account(s) to an investment account providing a fully automated two-way sweep between the accounts. Funds in your commercial account are automatically available to meet operating requirements and remaining funds are invested.
The sweep saves you time and is a convenient way to earn competitive market rates on your excess checking account balances that otherwise might remain idle. Whether the sweep services are your core investment strategy or complement it, you can be assured that all funds invested in sweeps are available to meet your daily operating needs.
Advantages of a Sweep Account
Automated Investing: Your sweep account is fully automated. Your commercial checking account activity is posted before the investment is processed, so only the funds in excess of the target balance are transferred into the overnight sweep investment. If your commercial checking account ever falls below the target balance, funds are automatically swept back into your commercial checking account to meet your daily cash needs and bring your account back up to its target balance.
Liquidity: Since sweep accounts are overnight investments, you will have access to your funds daily during normal business hours.
Yield: The automated sweep investment service provides you the opportunity to earn competitive market rates on excess funds that might otherwise remain idle in your commercial checking account.
Investment Options: Your commercial checking account excess balances can be placed into a variety of investment options:
Money Market Mutual Funds: The main objective of a money market mutual fund is the stability of the principal. Money market mutual funds seek to maintain a stable net asset value (NAV) of $1.00 per share and consist of short-term securities.
Grand Cayman Deposits: Grand Cayman deposits are U.S. dollar-denominated deposits issued by a foreign branch of a U.S. bank. Amegy Bank issues Grand Cayman deposits through its offshore Grand Cayman Islands Banking Center. The Grand Cayman Sweep account requires a $100,000 minimum daily investment balance.
Repurchase Agreements: Repurchase Agreements (Repos) are a sale of marketable securities from Amegy Bank of Texas to you, which the bank agrees to repurchase the next day, at the same price plus interest. In effect, a repurchase agreement is a collateralized short-term investment. Amegy Bank of Texas collateralizes in excess of 100% of your investment amount to cover any market fluctuations.
Establishing a Sweep Account
Peg Balance: An Amegy Bank of Texas Treasury Management Representative will work with you to establish a target balance (peg balance) in your commercial checking account. Based on the peg balance you select, the excess funds over this balance will be invested in our overnight sweep service. By maintaining a peg balance in your commercial checking account, you are able to partially or fully offset your treasury management service fees.
Online Reporting: Our NetST@R Balance Reporting Service provides timely and accurate information on your sweep investments allowing you to better manage your daily financial position.
Grand Cayman Deposits are not FDIC insured, and may be subject to additional restrictions with respect to liquidity. In addition, deposits in your Grand Cayman Account are payable at our office in the Cayman Islands, which is located at Harbour Place, 4th Floor, 103 South Church Street, Grand Cayman, Cayman Islands. The Bank will notify you of any change in this location. In the event of liquidation of the Bank, deposits held in the Grand Cayman Account will have lesser preference than deposits held in the United States. Deposits in the Grand Cayman Account may involve investment risk, including cross-border risks and possible loss of principal. The Grand Cayman account is considered a foreign bank account for IRS regulations. Please consult your tax advisor for more information.
Amegy Bank N.A. acts as an agent when distributing a money market mutual fund. Although money market funds seek to maintain a stable net asset value of $1.00 per share, there can be no assurance that they will achieve their goal.
Investment products and services available at select Amegy Bank N.A. banking centers are offered through Amegy Investments, Inc., member FINRA/SIPC, a registered broker dealer, investment adviser, licensed insurance agency and an affiliate of Amegy Bank N.A. Certain other insurance products are offered through Amegy Insurance, a licensed insurance agency and affiliate of Amegy Bank N.A. Investment and insurance products offered are NOT insured by the FDIC or any other governmental agency, are NOT deposits or other obligations of, or guaranteed by Amegy Bank N.A., its affiliates, or any other bank, and MAY be subject to investment risks, including the possible loss of principal value or amount invested.
