An in-house Sweep Account solution using Repurchase Agreements (“repos”) is designed to give your financial institution's customers the opportunity to invest excess funds from their commercial demand deposit account into an interest-bearing account. A sweep account can also provide safety for both commercial and consumer deposits in excess of the $250,000 limit of FDIC insurance coverage.
Here at Stratman Solutions, we’ve written a detailed technical Free White Paper that describes the requirements for a fully compliant Sweep Account solution using Repurchase Agreements. It will answer your questions regarding the definition of a Sweep Account, as well as regulatory requirements and practical steps to implementing Sweep Accounts. Email or call for your free, no obligation copy of A Practical Guide to Sweep Accounts Utilizing Overnight Repurchase Agreements.