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Altabanking episode 32 with Mike Baum

Oct. 16, 2020

Altabanking Interview KSL Radio Transcript: Treasury Management and Sweep Accounts

Segment title: Benefits Of Sweep Accounts

GRANT: Welcome to Altabanking. Weekly business talk geared toward elevating your financial future. Mike Baum is director of treasury management at Altabank. And Mike, the topic of sweep accounts has been buzzing around banking news lately. As someone in your position, do you recommend sweep accounts? And for those who may not know, what is a sweep account?

MIKE: We certainly do. Sweep accounts automatically link a business account either to an investment account or a commercial line of credit, or in some cases both. These two broad categories of sweep accounts are known as investment sweeps and loan sweeps.

GRANT: Can you first provide us with more information on investment sweep accounts?

MIKE: Sure. The investment sweeps allow business bank clients the ability to concentrate their balances from one or more commercial accounts. Each day any balance over a preset target level are automatically swept to the investment account where higher Interest rates can be earned. At Altabank, we have the ability to provide a sweep where the concentrated funds can be insured to levels much higher than the standard $250,000 FDIC Insurance.

GRANT: And what can you tell us about loan sweep accounts?

MIKE: A loan sweep automatically connects a business’ operating account with a commercial line of credit. If at the end of a business day, the operating account is below a preset balance, funds are automatically pulled from the line of credit. conversely, if there are excess funds, they’re transferred to pay down the line of credit balances.

GRANT: A sweep account Is just one part of an overall cash management program. What are some others that have a strong Impact on a business?

MIKE: As most businesses know, efficiencies come from conducting business electronically, and that’s exactly what the bank’s cash management systems offer. This would include a commercial online platform that offers online wire payments, ACH transactions, remote deposit services and merchant services that make It simple for businesses to accept customer credit and debit card payments.

GRANT: Mike, thank you very much for your time. This has been Altabanking. Brought you by Altabank. Member FDIC.