Your Asset Management Account will keep sufficient funds in checking to meet your needs at any point in time, with the balance maintained in your brokerage account where it can potentially earn a higher rate of return. You can customize your account in the following ways:
1. Choose how your sweep works.
You have three flexible options for "sweeping" funds back and forth.
- Automated Sweep – You designate a minimum and maximum amount of cash to remain in your checking account. Funds will automatically flow back and forth from your brokerage account to your checking account to maintain those designated levels.
- Automated Zero Balance Sweep – All available cash in your checking account will automatically flow into your brokerage account each night. Funds flow back as needed to cover checks, debit card purchases and other withdrawals.
- Self-Directed Sweep – You determine when to transfer cash between your checking account and your brokerage account.
2. Choose where to maintain your short-term sweep funds
Based on your instructions, available cash will flow from your checking account into taxable or tax-free options, including one with the security and protection of FDIC insurance.
3. Choose how to interface with longer-term investments
When a security is sold, or interest or dividends are credited to your account, the proceeds can be automatically invested into the sweep option of your choice. Additionally, the purchase of a security can be covered automatically with funds from the chosen sweep option.