This account was designed specifically for investment of excess funds on a daily basis to enable you to earn a competitive rate of interest via overnight purchase of government securities. With this arrangement, there is an agreement to repurchase the securities on the following business day. This account allows liquidity of funds as needed while it provides for maximum investment opportunities.
A collected compensating balance is determined for the General Operating Account to cover all activity fees. Interest is earned according to the schedule listed below:
Interest Earnings
0 - 49,999
50,000 - 99,999
100,000 - 499,999
500,000 - 999,999
OVER 1,000,000
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AVG T-BILL RATE:
LESS 150 BASIS POINTS
LESS 125 BASIS POINTS
LESS 75 BASIS POINTS
LESS 50 BASIS POINTS
LESS 0 BASIS POINTS
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Confirmation of the transactions and interest earned under this agreement are provided daily with a Summary Statement at month end.
Benefits:
- Unlimited check-writing; monthly bank statements
- Funds automatically sweep-eliminating the need to manage the account daily
- Funds are available on demand
- Eliminates the burden of maintaining a seperate interest-bearing account
- Funds are fully collateralized as required by State law for financial institutions accepting public funds
This service was designed for companies that maintain a general operating account as well as seperate accounts for payroll, petty cash, etc. With this service, all of your funds are concentrated into one general operating account and as items are presented for payment from subsidiary accounts, funds are automatically transferred from the operating account to cover them. The account balance of subsidiary accounts therefore will always maintain a zero balance. This service allows you to maximize your investment opportunity and minimizes the administrative time required to monitor multiple accounts and make the transfers needed.
A collected compensating balance is determined for the combination of activity in all accounts and excess funds earn interest at a competitive market rate. For municipalities, these funds are collateralized by the State Treasurer's Pooling Method.
Benefits
- Saves administrative time -- transfers are automatic
- Eliminates the need to monitor account balances and funding requirements
- Excess funds in the general operating account can be invested to maximize return on funds while maintaining liquidity
- Transfers from the operating account to the subsidiary accounts are cross-referenced via a description to provide a clear trail for reconciliation information and control
Not FDIC Insured
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