For qualifying customer accounts we also offer these banking solutions:
- Automated Repo Sweeps
- Commercial Account Analysis
Automated Repo Sweep
A Sweep Account is suitable for high dollar corporate customers who agree to maintain a set target balance defined in a Corporate Sweep Agreement. The Sweep Agreement also governs the amount automatically swept daily into an interest bearing Repurchase Agreement (Repo) account. When the balance in the checking account falls below the target balance, funds are swept back to replenish the target balance.
- Minimum opening balance is set in Sweep Agreement
- Target Balance is set in the Sweep Agreement in consideration for earning interest on higher balances.
- Retail Repurchase Agreements (“Repos”) are short-term debt obligations of the Bank. The Bank pledges U.S. Securities as collateral to secure its obligation to pay the amount due under any Repo. First Bethany confirms in writing the specific securities that are the collateral for each Repo.1
- Repurchase Yield Calculation - Principal times rate, less service charge, equals net interest earned.
Monthly statement reflects the account earnings and service fee.
Principal – amount over the Target Balance
Rate – set by the bank
Interest – Principal X Rate/365 da X 30 da2
Service Charge – Principal/1000 X .01 X 30 da2 (minimum $45.00) per month
Earnings – Interest minus Service Charge
Yield – Earnings / 30 da2 X 365 da / Principal
1Repos are the secured obligations of the Bank. Any amounts placed in Repos under this agreement are not deposits of the bank and are not insured by the FDIC and are subject to investment risks, including possible loss of the principal invested.
2Number of days in the month.
Commercial Account Analysis
Commercial Analysis is suitable for qualified accounts of established businesses with higher levels of checking activity and/or those with a need for multiple business services. An earnings credit is applied to combined average collected investable balances that can offset service charges for checking activity during the analysis period.
- Qualified Accounts – include primarily transaction accounts which can be interest bearing accounts, but not term accounts such as CDs.
- Earnings Credit – based on the bank’s interest rate index that may change at any time.
- Investable Balance – calculated using the average ledger balance, less uncollected funds, less a 10% reserve requirement.
- Service Charge – the cost of the monthly transaction fees in addition to fees for any other business services, such as wire, stop payment, coin counting, treasury services, etc. offset against the monthly earnings credit.
- Analysis Period – the calendar month for which fees were assessed.