What Is a Sweep Account?
A sweep account (aka ICS Account) is a bank or brokerage account that automatically transfers amounts that exceed, or fall short of, a certain level into a higher interest-earning investment option at the close of each business day. Commonly, the excess cash is swept into a money market account.
In short, a sweep account automatically transfers cash funds into a safe but higher interest-earning investment option at the close of each business day.
Sweep accounts always have the same account number as the primary account. Our banking integration features are based on unique bank account numbers so there are a few things to know to best manage these types of accounts in Vantaca.
Sweep Accounts in Vantaca.
Every aspect of the sweep account is treated like a non-integrated bank account.
Setting up a sweep account in Vantaca is no different from adding regular Bank Accounts on the Association > Bank Accounts screen. The only exception is that you will use a "dummy" account number, as Vantaca cannot have two accounts with the same number.
Once the Sweep Account is in the system, there is no automatic process to track these transactions. On the main account you'll see the bank transactions for a transfer out.
To record this, you can process a Funds Transfer from the main account to the sweep account without moving funds.
Those transfers on the sweep account will be reconciled against no bank transactions, just as if it was a non integrated bank. You will also need to manually upload the statement each month for this account (if it has a separate statement).