Sweep Accounting

What is sweep accounting?
A service that allows the automatic transfer of funds between accounts based on pre-defined criteria.

What is the difference between sweep accounting & AFT (Automatic Funds Transfer)?
Sweeps should not be confused with functions performed by the AFT application. AFT programming provides for the regular periodic transfer of funds between accounts. Sweep accounting transfers funds between designated accounts without consideration of any specific time interval.

If you wish to make regular monthly transfers from one account to another (EX: checking to savings) you must set up an AFT, not a sweep.

In what circumstances may I use sweep accounting?
Sweep accounting is designed to accommodate those customers who seldom incur overdrafts and have funds readily available in another First Bank account. Although a fee is assessed for each sweep, it is substantially lower than NSF fees. Sweep accounting is also helpful for persons wishing to maintain a maximum account balance, with the excess swept into another account, in most instances an interest-bearing account. This feature is especially beneficial to commercial customers making regular daily deposits.

Sweeps may not be established for Certificates of Deposit, Individual Retirement Accounts, or loans.

Am I limited to the number of sweeps I may have each month?
Yes. Transactions from a savings account are limited to six (6) per quarter. Transactions from a Money Market Deposit Account (MMDA) or Future Fund account are limited to six (6) per statement cycle or month. Transactions from checking accounts other than the MMDA or Future Fund are unlimited.

Will a fee be assessed for the sweep?
Yes. A $5.00 fee will be assessed each time a sweep occurs. Transactions from a savings account in excess of three (3) per quarter will be assessed a $2.00 excess transaction fee per transaction. The fee will be charged to the savings account and is in addition to the sweep processing fee.

Which account is assessed the sweep fee? The account transferred from or the account transferred to?
The account that is designated as the primary account is assessed the sweep fee. Depending on how the sweep is set up, the primary account may be either the account swept from or the account swept to.

If a check is presented that will not pay based on insufficient funds, will I be charged an NSF fee, or will the sweep occur prior to the item being paid into the overdraft?
The item will not go into the overdraft & an NSF fee will not be assessed. The sweep system will determine the amount of funds to be transferred and will process during the nightly run.

Can I designate specific amounts to be transferred for each sweep?
Yes. Increments to be transferred may be designated. For instance, you may want a set amount of $100 to be transferred at a time.

If a specific increment has been designated but more than the increment is needed to cover insufficient funds, will multiple sweeps be performed? If so, will a fee be assessed for each sweep?
The system will determine the amount needed and will move this amount in multiples of the designated increment. EX: Sweep set to increments of $100; check is presented & will make the account short $250; $300 will be transferred in multiples of $100 each to cover the $250 shortage. Only one sweep fee will be assessed.

Can minimum and maximum account balances be designated?
Yes. You may wish to designate a floor for your account balance, or the minimum amount you wish to maintain in the account. You may also wish to designate a ceiling, or the maximum amount you wish to maintain in the account.

EX # 1: Commercial checking account needs to maintain a maximum balance of $35,000. Funds in excess of the $35,000 can be moved to another account. Designate the maximum balance when entering the sweep arrangement.

EX # 2: Sweeps are established to go from savings to checking. A minimum balance has been established for the checking account. When the balance falls below the minimum, funds are moved from the savings to the checking account to bring the account balance to the specified minimum.

EX # 3: Sweeps are established to go from savings to checking. A minimum balance has been established for the savings account. When the savings balance reaches the designated minimum, funds will no longer be transferred from the account.

Will I be provided a notice when a sweep occurs?
Yes. In addition, when savings accounts, Money Market Deposit Accounts, or Future Fund Accounts reach the designated limit of transfers, you will receive a cancellation notice advising that the sweep service is cancelled until the next statement cycle begins.

May I designate more than one account to have funds swept from?
Yes. In the event you do not have sufficient funds in the first account to process the sweep, other designated accounts will be reviewed for sufficient funds. However, if the first account listed is able to satisfy the terms of the sweep, the additional accounts will not be accessed.

How do I obtain the sweep service?
New accounts or customer service can assist you in establishing sweeps. A “Limited Sweep Arrangement Disclosure” will be provided to you at the time the sweep is established. You must execute a “Limited Sweep Arrangement Authorization” before the sweep is set up.

How do I discontinue the sweep service?
New accounts or customer service can assist with this. You must sign a statement authorizing the service to be discontinued.

How will the transactions be reflected on my account statement?
A descriptive entry will be used so that you will recognize the sweep transaction. Contact our New Accounts Department for detailed information on Sweep Accounting.