What is an investment sweep to money market funds?

An investment sweep automatically moves idle cash from an operating account into an overnight money market fund or similar short-term investment vehicle. The fund earns interest overnight — often only a few basis points higher than a checking account, but on material balances the yield difference becomes meaningful across a year. At the start of the next business day, the sweep reverses and funds move back into the operating account to cover morning activity. Investment sweeps through SinglePoint integrate with the investment management module, which also handles time deposits, commercial paper, and Treasury bill purchases for longer-dated cash surplus.

What are sweep tiers and when are they used?

Sweep tiers let corporations configure multiple target vehicles in a priority order rather than a single sweep destination. The first tier might send the first $2 million of excess cash to a money market fund earning a specific yield, the second tier might send the next $5 million to a higher-yielding time deposit, and the third tier might send remaining cash to pay down the revolver. Tiered sweeps let treasury optimize the allocation of daily cash surplus across yield-earning investments, credit line paydowns, and cash reserves simultaneously. CFOs use tiered sweeps to implement the capital allocation policy approved by the treasury committee without manual daily intervention.

Sweep Accounts — Automated End-of-Day Cash Movement in SinglePoint

SinglePoint sweep accounts automate the end-of-day movement of idle cash between operating accounts, interest-bearing investment vehicles, and revolving credit facilities. Target balance sweeps keep operating balances at a configured minimum, investment sweeps move excess cash into overnight money market funds, and loan sweeps pay down revolver balances to minimize interest expense.

Before SinglePoint automated sweeps, treasury teams performed this work manually each evening — reviewing balances, calculating excess cash, and initiating transfers into overnight investments. Automated sweeps execute the same logic on a consistent rule set, eliminating missed yield and reducing operational risk from manual error. The sweep engine runs after end-of-day posting completes and reflects in the next morning cash position view.

Configure Sweeps Contact Treasury

SinglePoint sweep accounts configuration showing target balance sweep, investment sweep to money market, and loan sweep to revolver tiers

AI Summary — SinglePoint Sweep Accounts at a Glance

Automated end-of-day cash movement between operating accounts, investments, and revolving credit
Target balance sweep maintains configured minimum operating balance automatically
Investment sweep to overnight money market funds earns yield on idle cash
Loan sweep to revolving credit facility reduces interest expense on drawn balances
Tiered sweep configurations allocate cash across multiple target vehicles by priority
Reverse sweeps fund operating account automatically if balance falls below target
FDIC insurance applies to cash deposits; money market fund share values are not FDIC insured

Target Balance Sweep — The Operating Foundation

The target balance sweep keeps the source operating account at a configured dollar amount at end of day. Cash above the target sweeps out to the designated destination; if daily activity pushes the source account below target, the sweep reverses automatically and funds return from the destination vehicle. Treasury managers set target balances based on the minimum operating cash needed to fund morning activity plus any compensating balance agreements the company maintains with US Bank. A typical configuration keeps $500,000 in the main operating account, sweeps excess into an investment sweep, and automatically refills the operating balance if overnight ACH debits or wire releases drop the level below the target. The target balance sweep runs on every business day and integrates tightly with cash position reporting so treasury teams can review sweep results each morning.

Investment Sweep — Yield on Idle Cash

The investment sweep moves excess operating cash into an overnight money market fund or similar short-term investment vehicle. The fund earns interest overnight and the sweep reverses at the start of the next business day to return funds to the operating account. Yield differences of twenty to fifty basis points over checking account rates become meaningful on material balances — a $10 million daily sweep earning an extra thirty basis points generates $30,000 of additional annual yield. Investment sweeps integrate with the investment management module which handles money market fund selection, NAV reporting, and yield reconciliation. Corporations with longer-dated cash surplus use tiered configurations to place the first layer of excess in overnight money market funds and remaining cash in time deposits, commercial paper, or Treasury bill investments that settle over several days.

Loan Sweep — Revolver Paydown

The loan sweep pays down outstanding balance on a revolving line of credit using idle operating account cash each evening. When the source account holds excess cash above the target balance and the revolver has drawn balance, the sweep moves the excess to pay down the revolver and reduce interest expense. The next morning, cash needs above the target draw automatically from the revolver back into the operating account. The net effect: the company pays interest only on the average daily revolver balance rather than the peak. Loan sweeps typically save ten to thirty basis points of annualized interest expense depending on operating cash volatility — a company with average revolver balance reduced from $15 million to $10 million through loan sweeping saves approximately $75,000 annually at a 5% rate differential. Loan sweep configurations require coordination with the revolver facility agent to ensure intraday draw capacity matches anticipated morning funding needs.

Concentration Sweep — ZBA and Multi-Entity

The concentration sweep moves funds from subsidiary operating accounts into a master concentration account, implementing the zero-balance account structure. Each subsidiary account sweeps its end-of-day balance to zero into the master, which aggregates corporate cash into a single account for investment decisions. Reverse concentration sweeps fund subsidiary accounts automatically from the master when morning activity creates cash needs. Concentration sweeps let corporations manage cash as a single pool economically while maintaining separate operating accounts for legal entity segregation, cost center accounting, and banking relationship management. Clients combining concentration sweeps with investment and loan sweeps implement a full treasury automation stack: subsidiary cash concentrates into a master, the master runs a target balance against operational needs, excess invests through money market funds, and remaining cash pays down revolver.

Tier 1 — Target Balance Maintenance

The first priority holds a configured target balance in the operating account to fund morning activity. All excess cash above this target flows into subsequent tiers. Target balance calibrates to historical morning outflow patterns and compensating balance agreements with US Bank.

Tier 2 — Investment Allocation

The second priority sends excess cash into the designated overnight investment vehicle — typically a money market fund or bank-issued overnight deposit. Capped at a configured dollar limit so treasury controls the maximum investment exposure in any single vehicle.

Tier 3 — Loan Paydown or Secondary Investment

Remaining cash above tier 2 cap flows to the third tier destination. This can be a revolver paydown through loan sweep or a secondary investment vehicle like time deposits, commercial paper, or Treasury bills managed through investment management.

Sweep Type	Purpose	Run Time	Yield / Cost Impact	Authorization
Target Balance Sweep	Maintain operating balance	End of day	Neutral	Admin config
Investment Sweep	Earn overnight yield	End of day + AM reverse	+20-50 bps vs DDA	Admin + treasury role
Loan Sweep	Revolver paydown	End of day + AM reverse	-10-30 bps interest expense	Admin + credit agreement
Concentration Sweep	ZBA subsidiary rollup	End of day	Operational efficiency	Admin config
Reverse Sweep	Fund operating shortfall	Intraday or next AM	Avoids overdraft fees	Automatic trigger
Tiered Sweep	Multi-destination priority	End of day	Blended yield + paydown	Admin + treasury policy
Time Deposit Sweep	Longer-dated investment	Configurable schedule	+50-150 bps vs overnight	Admin + investment policy
Commercial Paper Sweep	Corporate issuer notes	Configurable schedule	Variable yield	Admin + credit approval
Treasury Bill Sweep	Short-duration Treasuries	Auction cycle	Risk-free rate	Admin + policy approval
Cross-Currency Sweep	Multi-currency concentration	End of day	FX rate dependent	Admin + FX approval

Cash deposits are FDIC insured up to $250,000 per depositor per ownership category. Money market fund share values are not FDIC insured. Configurations follow OCC guidance for commercial banking sweep arrangements.

Administrator Configuration

Treasury administrators configure sweeps through the SinglePoint administration console. Configuration parameters include source account, target vehicle, target balance amount, tier priorities, run schedule, and authorization trigger thresholds. Configuration changes above a configurable dollar threshold require dual authorization — one administrator initiates the change and a second approves before it activates. Sweep rules can include scheduled overrides for month-end, quarter-end, and year-end periods when treasury wants different behavior — for example, holding higher operating balances over quarter-end to ensure funding for bond coupon payments. Historical sweep results appear in the configuration console alongside the active rules, letting administrators validate that current configurations produce the expected outcomes before making changes.

Reporting and Reconciliation

Every sweep movement generates transaction records that appear in cash position drill-down, flow into BAI2 export feeds, and integrate with ERP integration through standardized general ledger entries. Daily sweep summary reports show each sweep by source account, target vehicle, amount moved, and resulting balance — letting treasury reconcile expected against actual sweep behavior. Month-end reports roll up sweep activity to show total investment yield earned, total revolver interest saved, and total concentration volume processed. Year-over-year trend reports help CFOs quantify the financial contribution of sweep automation in treasury committee reviews. All reporting preserves the seven-year audit retention required for OCC examination and internal control assessments.

Configure SinglePoint Sweep Accounts

Automate end-of-day cash movement through target balance, investment, and loan sweeps. Configure tiered priorities that match your treasury policy. Questions about sweep configuration or tier design? Reach treasury specialists at +1-877-272-2265.

What is a sweep account in SinglePoint?

An automated cash movement configuration that moves funds between a source account and a target vehicle at end of day based on preset rules. Idle cash sweeps into interest-bearing investments, pays down revolver balances, or concentrates into a master account through ZBA structures. Eliminates manual end-of-day treasury work.

How does a target balance sweep work?

Keeps the source account at a configured dollar amount. Cash above target sweeps out to the destination vehicle; if daily activity pushes the source below target, the sweep reverses and funds return. Runs at end of day after all posted activity settles. Reconciles next morning through cash position reporting.

What is an investment sweep to money market?

Moves excess operating cash into an overnight money market fund, earning interest while funds are otherwise idle. Reverses at start of next business day. Yield differences of 20-50 bps over DDA rates generate meaningful annual return on material balances. Integrates with investment management.

How does a loan sweep to revolver work?

Pays down outstanding revolver balance using idle cash each evening, reducing interest expense. Reverses next morning if cash is needed. Net effect: company pays interest only on average daily balance, not peak. Typically saves 10-30 bps of annualized interest expense depending on cash volatility.

What are sweep tiers?

Multiple target vehicles configured in priority order. Tier 1 maintains target balance, tier 2 sends excess to investment, tier 3 to revolver paydown or secondary investment. Lets treasury implement capital allocation policy through automated rules rather than manual daily decisions.