Sweeps FAQs
Frequently Asked Questions
Key offers three Investment Sweep products:
- Repurchase Agreement (Repo) Sweep:
- An overnight investment that consists of direct obligations of, or those that are fully guaranteed as to the principal and interest by the U.S. Government or agencies.
- Automatic Investment Sweep:
- An Automatic Investment Sweep is an open term investment in a selection of money market mutual funds provided by Federated® Investors.
- Commercial or Public Interest Sweep
- A Commercial or Public Interest Sweep is an open term savings in an interest bearing deposit account at KeyBank.
KeyBank does not provide investment advice. However, some things to consider when making your decision could include your investment policy, KeyBank’s financial strength, Federated Investors financial strength, underlying investment rating and prospectuses, FDIC coverage, etc.
No. Sweep calculations are based on Collected Balances. KeyBank sets a minimum target balance of $25,000 to remain in the bank account.
Not necessarily. Key’s system automatically considers available funds in Sweep accounts when determining availability for posting debits.
No. The only transactions into or out of Sweep accounts are through the Sweep mechanism.
No.
Aside from the Sweep Service Schedule, no additional documentation is required.
Key will send a 1099 if the annual interest paid is $10 or more. Repo and Automatic Investment Sweep earning are not considered interest and Key will not send a 1099.
Yes, with the exception of the Repo Sweep.
In addition to being able to view transfers to and from your bank account via the KeyNavigator Previous Day Report, there are additional reports available depending on the Investment Sweep account(s) you have.
- For the Repo Sweep, you will receive a Daily Investment Confirmation.
- For the Automatic Investment Sweep, you will receive an Automatic Investment Sweep Daily Report.
There are some credit products that are not eligible for Credit Sweep services. Please consult your Payments Advisor to determine the best solution for your needs.
In addition to being able to view transfers to and from your bank account on the KeyNavigator Previous Day Report, a daily Credit Sweep Report is also available.