Business Sweep Account

Each business day, First Southern Bank automatically monitors a designated business analysis account, calculates the net cash position in the account and transfers funds either to or from the sweep option which you have selected. On a daily basis the account activity, including transfers and disbursements from this account (1) are systematically factored into the investment calculation, ensuring that collected funds aren’t being over or under-invested using the Target Balance Accounting Service.

With the First Southern Bank automated sweep options, you make the decisions and we do the work. Like clockwork, any idle collected balances are swept automatically to the investment option you have chosen and funds are swept back into the checking account as needed to maintain the target balance and cover any withdrawals or checks presented for payment.

Establishing a First Southern Bank Sweep Account is a very simple process:

Work with a Cash Management Sales Officer to determine an appropriate collected target balance to keep in your checking account. This balance needs to be at least $100,000(2) and once established, the automated sweep system will move funds in increments of $1,000 either in or out of the account to maintain the collected target balance.
Choose either one of the two sweep options available for your business excess funds:

GovCash Sweep – a secure and fully liquid off-balance sheet sweep that is collateralized at 102% by U.S. Treasury Securities, with collateral placed in a segregated account at a custody department within a major New York bank.
This option provides for a daily perfected lien for your sweep investment and daily confirmations are provided to identify your specific investment, interest and collateral.
Fidelity "AAA" Prime Portfolio Money Market Mutual Fund – seeks to provide income by investing in the highest quality U.S. dollar-denominated money market securities of domestic and foreign issuers, U.S. Government Securities, and repurchase and reverse repurchase agreements.

Additional Features

First Southern Bank Sweep Accounts can be linked to BizBanc, the online business Internet Cash Management Solution for the Bank. BizBanc enables you to access daily information regarding your cash position and initiate many types of bank transactions using your PC and the Internet.

1 The sweep account is not a deposit or other obligation of, or guaranteed by the bank; it is not insured by the Federal Deposit Insurance Corporation or any other Insurance Organization and is subject to investment risks, including possible loss of principal invested amount.

2 The $100,000 minimum balance remaining in the checking account as a target balance is insured by the Federal Deposit Insurance Corporation. In fact, balances up to $250,000 are FDIC insured. The standard insurance amount of $250,000 per depositor is in effect through December 31, 2013. On January 1, 2014, the standard insurance amount will return to $100,000 per depositor for all account categories except IRAs and other certain retirement accounts, which will remain at $250,000 per depositor.