Fidelity Mutual Fund Sweep

Fidelity Mutual Fund Sweep

Put your excess balance to work.

Put your excess balance to work.

A Fidelity Mutual Fund Sweep is an overnight investment that allows you to sweep excess balances into a mutual fund account to earn interest, while maintaining full access to the funds. The mutual fund sweep account is opened in conjunction with a commercial checking account.

Summary
  • Allows commercial accounts to earn interest on funds while maintaining full availability
  • There are no transaction limits, as the mutual fund sweep account is tied to your business' main operating account
  • The process occurs automatically, and the target balance can be changed at any time
How It Works

When a customer opens a commercial checking account, a maximum target balance is set. When this target balance is exceeded, the excess funds are automatically transferred into a mutual fund account held at Fidelity Investments. Interest is earned on the excess balances.

Interest is accrued daily and paid to the account monthly. This provides the customer with options and flexibility and is ideal for companies who are generally risk-tolerant.

Mutual funds are "external" investment sources and are not FDIC insured. While offering greater risk, these investment vehicles also offer the potential for higher yields and earnings. Evergreen Bank Group's automated system keeps track of account balances and reduces the time a staff member would need to consistently monitor the investment.

Because funds are transferred when account balances exceed a predetermined target balance, it saves time for the bank and the customer and improves accuracy. The automation of this product provides a cost savings to the customer. Plus, your funds are always accessible.

If your company has a transaction that pulls your balance below the target level, funds are automatically swept back into the account to maintain the target balance.

Terms

Mutual funds are "external" investment sources and are not FDIC or Bank insured. These investments are subject to risk including loss of principal.

All accounts subject to credit approval. Other terms and conditions may apply. For more information, please contact an Executive Banker at your local branch.