What is a sweep account? Letting spare cash move on its own
By SendPay Business · · 2 min read
A sweep account automatically moves money between two accounts based on rules you set. The most common set-up moves spare cash from a current account into a savings or interest-earning account, and moves it back when the current account runs low.
How it works
- You choose a target balance for your current account.
- At the end of each day, or another set time, anything above the target is swept into savings.
- If the current account drops below the target, money is swept back to cover payments.
Why businesses use them
Spare cash earns interest instead of sitting idle, while there is still enough in the current account to pay suppliers and staff. It also saves time compared with moving money by hand.
Things to watch
- Some sweep products charge fees that can outweigh the interest earned.
- Money swept into investments may not be protected in the same way as bank deposits.
- Check how quickly swept money can come back if a large payment is due.
Where SendPay fits
SendPay isn't a bank. SendPay platforms give your customers GBP, EUR and USD accounts, transfers and branded Visa cards under your own brand, powered by licensed partners. SendPay doesn't offer lending.
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This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.