Citizens Sweep Manager
Put your idle checking account balance to work. Earn competitive interest rates on your checking account balances – automatically. Citizens Sweep Manager automatically manages your cash, allowing you to focus on more important issues. Many businesses spend countless hours trying to manage their excess checking account balances – transferring idle cash to and from higher yielding accounts to maximize their earnings.
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Automated Cash Efficiency
With Citizens Sweep Manager, a predetermined balance remains in your checking account to cover daily transactions and to offset your account maintenance and activity fees. Funds are automatically swept back to your business checking account to cover the checks presented and to return your checking account to the predetermined balance.
Citizens Sweep Manager balances earn a competitive rate of return by being invested overnight in a repurchase agreement.
Effective Management of Your Cash Requirements
- High degree of safety of principal and interest
- Competitive rate of return
- A single source for both checking and investing
- Unlimited check writing
- On–line access to view balances and statements
- Combined monthly statement for all transaction activity plus daily electronic confirmations
The Benefits of Sweep Manager
- Improve profitability by earning interest on idle cash
- Daily liquidity and easy access.
- Peace of mind knowing balances have a high degree of safety
What is a repurchase agreement and how does it work?
- When funds are swept from your business checking account, those funds are used to make overnight purchases of securities that are direct obligations of the United States, one of its agencies or one of its sponsored enterprises. Your purchase of securities is made in accordance with a repurchase agreement. A repurchase agreement is not itself a security and is not guaranteed by the United States or any of its agencies. A repurchase agreement is a contract under which you purchase securities from Citizens Business Bank. The Bank is obligated to repurchase those securities from you on the next business day for a fixed price that is more that the purchase price you paid. That is, you earn a small profit on each repurchase transaction. This purchase and repurchase process is repeated each business day. The accumulation of your daily repurchase profits is, from your perspective, the same as Citizens Business Bank paying you interest on the swept balances.
Are your funds protected when invested in repurchase agreements?
- Your funds are extremely well protected when invested in government securities pursuant to repurchase agreements. Even in the unlikely event of sudden bank failure, you would still continue your ownership in the securities. The third-party custodian that facilitates the purchase and repurchase of securities is obligated to sell securities on your behalf and for your benefit.
Not FDIC Insured - No Bank Guarantee - May Lose Value
Please Note:
Any amounts invested pursuant to repurchase agreements are not deposits of the bank, are not insured by the Federal Deposit Insurance Corporation (FDIC), are not themselves guaranteed in any way by the United States or any of its agencies (even though the securities purchased by means of a repurchase agreement may be), are not a money market certificate but are subject to investment risks, including possible loss of principal invested.
