Sweep Account

For our purposes of financial disclosure, a sweep account is a type of account in which funds over a predetermined average balance are automatically transferred (or “swept”) from the primary cash account into secondary investment accounts (often money market mutual funds). This allows the account owner to earn a higher interest on the excess cash with minimum personal intervention.

Often, public financial disclosure filers have sweep accounts within brokerage accounts that they use primarily for investing in stocks and other securities. Cash from sales of the stocks and other securities can be moved into the sweep account pending reinvestment. 

 

This guide is not intended to provide investment advice, and you should not rely on statements in this guide when making investment decisions.

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