Repo Sweep Checking
Overview – This account allows our higher balance business customers the ability to maintain liquid funds in an interest bearing account. Two components make up this account: a parent checking account, and a repo sweep account.
At time of opening, minimum and maximum account balances for the parent account are established between the customer and PFSB to try to fit the liquidity needs of the customer. The funds exceeding the maximum limit are kept in a sweep account. Nightly transfers of funds are made in or out according to the min/max limits set on the parent account.
Rate Information – Please contact a new accounts representative for current rate information. The interest rate and annual percentage yield may change on the account at any time and at our discretion.
The tier balances are as follows:
• Tier 1 –$ 0 to $499.99
• Tier 2 –$ 500 to $199,999.99
• Tier 3 –$ 200,000 or greater
Compounding and crediting frequency – Interest will be compounded and credited to the account every month.
Effect of closing an account – If the account is closed before the interest is credited, you will not receive the accrued interest.
Daily balance computation method – We use the daily balance method to calculate the interest on the account. This method applies a daily periodic rate to the principal in the account each day.
Accrual of interest on non-cash deposits – Interest begins to accrue on the first business day after the banking day the non-cash items were deposited (for example, checks).
For more information, please contact a Peoples Federal Savings Bank account representative.
