Max Earnings Sweeps for Business Members
The BizLink Advisory Board is pleased to introduce a product for your business members: Max Earnings daily money management sweeps.
As the name implies, Max Earnings helps businesses maximize dividends on their daily operational accounts via daily sweeps to a higher-earning money market or other credit union investment savings account. Money can be transferred daily between a designated “operating” account and a designated “investment” account.
In a nutshell, at the end of each processing day before interest is accrued, funds transfer from the operating account to the investment account. At the beginning of the next day, funds transfer (sweep) back to the operating account. The relationship can be configured to sweep all funds or any funds over a specified balance to the investment account. After interest accrual and EOD balances have been calculated, all funds, no funds or a fixed amount of funds transfer back to the operating account.
The Sweeps
- Sweeps from the operating to investment account take place during EOD processing just before dividends are accrued on the investment account.
- Sweeps back from the investment account take place during BOD processing, just after account balances are gathered for that morning. That way your investment account GLs will reflect the amount used for dividend accruals, before the funds are returned to the operating account.
- Sweeps must be between checking and savings sub-accounts only. IRAs and HSAs are also excluded at this time. There is no plan to include A2A or OTB account relationships in the Max Earnings process, as the timing of transactions being sent to third-parties precludes a daily sweep of this type. (TIP: Remember that OTB products already allow for sweep processing, and recurring (AFT) A2A transactions can already be set up as well.)
- Sweeps from operating to investment account can be set up to move all funds, or only funds above a set amount (sometimes referred to as a “peg” balance or amount to remain).
- Sweeps back from the investment account to the operating account can be set up to move all funds or a static dollar amount. In addition, the sweep back is optional. For example, a business could choose to move anything over $10K out of their checking account each night and then leave it in the investment account, without sweeping anything back.
- Although each operating (checking) account can have only one daily sweep, multiple operating accounts can sweep into a single investment account if desired.
- If either account has insufficient funds to move the entire sweep amount as configured, the sweep will still move whatever amount is available. For example, if the sweep normally moves $5,000 each day from the checking account, and the account balance falls to $4,000, then only $4,000 will be moved that day.
The Fees
Monthly fees will be optional and set up for each individual sweep, so you can maintain a flexible fee process based on relationship and business type.
For each sweep configured, you can choose to charge a monthly flat fee, or you can elect to charge the fee only when the balance in the investment account falls below a certain minimum balance you wish to require. There are no automated waiver mechanisms at this time, but you can choose to set the fee amount to $0 for individual memberships if you wish. Fee income will be tracked via the Fee Income/Waivers History analysis dashboard.
