How Robinhood Stacks Up
Robinhood Cash Management gives customers access to many convenient banking features, like direct deposit, online bill pay and a debit card. The account also earns a fairly competitive high-yield interest rate, making it one of the best cash management accounts around.
But the account is no longer available to new customers. And it lacks mobile check deposit and doesn’t come with checks, although Robinhood will send checks on your behalf at no cost. Using Robinhood Cash Management allows you to deposit large amounts of money with extended FDIC insurance limits.
Robinhood brokerage accounts offer features not found with some online brokers, like the ability to buy fractional shares and no commission fees on cryptocurrency. If that’s something of interest to you, check out Robinhood. The cash management feature is part of the brokerage account, but it isn’t a requirement to use Robinhood. If you’d rather not keep extra money in the account, there’s no requirement to do so.
Can you play sweepstakes casinos online for money?
Sweepstakes casino sites are very different from regular online casino sites. This is because you don’t play sweepstakes casino games with real money. Instead you’ll be playing with a kind of virtual currency that has no cash value. Such virtual currency will often come in various forms such as ‘gold coins’ and ‘sweeps coins’, but they all are used as stakes for playing anything from a quick game of slots to table games like roulette, baccarat and blackjack.
This is obviously a big contrast to regular online casinos where you have to make real money deposits and then use this money as stakes. Obviously you can then make some real money wins when you play at standard casino sites, but there’s also the chance of losing your money too.
There will be some people who might be disappointed that you can’t play with real money at sweepstakes casinos. However, we think that an online sweepstake casino offers you a great way to get to know how to play different kinds of casino games without risking your own cash. Plus some sweepstakes casino sites have been known to give away prizes for players.
Above all, it shows that there are different kinds of casino sites for different kinds of players. While some people are happy enough to try their luck on casino games without using their own money, other people find that casino gaming is much more interesting when they play with real money.
Thankfully there is no real difference in the quality of the gameplay when comparing sweepstakes casino sites and regular online casinos. It all comes down to how you want to play and what the online gambling laws are in your state. But one thing’s for sure and that a good online sweepstakes casino is just as much fund as a standard casino site!
Часто задаваемые вопросы
Как работают учетные записи Sweep?
Чистый счет – это банковский или брокерский счет, который переводит суммы, которые превышают или не достигают определенного уровня, в вариант инвестирования с более высоким процентом в конце каждого рабочего дня. Обычно излишки наличности переводятся в фонд денежного рынка. Например, компьютеры банка анализируют использование клиентами чековых депозитов и переводят средства на депозитные счета денежного рынка.
В чем разница между личным и деловым обследованием?
Счета Sweep для индивидуальных инвесторов обычно используются брокерскими конторами для хранения денег, ожидающих реинвестирования на текущие счета с высокой процентной ставкой или в фонды денежного рынка, пока инвестор не будет готов принять решение. Развернутый счет для бизнеса, особенно малых предприятий, которые полагаются на ежедневный денежный поток, но хотят максимизировать потенциальную прибыль за счет текущих денежных резервов, установить минимальный баланс для основного текущего счета, по которому любые средства переводятся в инвестиционный продукт с более высоким процентом. Если баланс когда-либо опускается ниже порогового значения, средства возвращаются на текущий счет с инвестиционного счета.
Почему полезны учетные записи Sweep?
Счета Sweep, как для бизнеса, так и для личного пользования, позволяют гарантировать, что деньги не сидят без дела на низкопроцентном счете, когда они могут приносить более высокие процентные ставки в более ликвидных средствах инвестирования денежных средств. Некоторые учреждения предлагают функцию автоматической развертки, при которой учетная запись проверки связана с учетной записью без проверки, и переводы инициируются автоматически при пересечении определенных пороговых значений (верхнего и нижнего).
Personal Sweeps vs. Business Sweeps
Sweep accounts for individual investors are typically used by brokerages to park money waiting to be reinvested such as dividends, incoming cash deposits, and money from sell orders. These funds are typically swept into high-interest holding accounts or into money market funds until an investor makes a decision on future investments or until the broker can execute already standing orders within the portfolio.
Sweep accounts are a typical business tool, especially for small businesses that rely on daily cash flow but want to maximize earning potential on sitting cash reserves. A business sets a minimum balance for its main checking account, over which any funds are swept into a higher-interest investment product. If the balance ever dips below the threshold, the funds are swept back into the checking account from the investment account.
Depending on the institution and investment vehicle, the sweep process is generally set daily from the checking account, while the return of funds can possibly experience delays. With the changes of regulations on checking accounts, some banking institutions also offer high-interest rates on amounts over certain balances.
How Do Sweep Accounts Work?
A sweep account is a type of bank or brokerage account that is linked to an investment account, and automatically transfers funds when the balance is above or below a preset minimum. Typically, this is used to sweep excess cash into a money market fund, where it will earn more interest than an ordinary bank account. Sweep accounts can also work the other way around, moving funds from an investment account to a checking account when the owner’s balance falls below a set threshold.
What Is the Difference Between Personal and Business Sweeps?
Individual sweeps are typically used by brokerages to store client funds until the owner decides how to invest the money. For example, a sweep account might move excess cash to a money market fund, where it will earn greater returns than an ordinary checking account. Business sweep accounts are often used by small companies with large cash flows. They allow the company to earn interest on excess cash reserves while ensuring that they have enough cash on hand to pay for business expenses.
Finding the right sweepstakes casino for you — making use of our on-site sweepstakes casino reviews
There is no doubt that casinos like Chumba, Bspot, and Funz Points all offer fantastic online experiences; however, ultimately, the best place to play online is very much dependent on your own preferences.
If you are new to the sweepstakes casino world, you may not be 100% certain on what you are after. Below, our sweepstakes gambling gurus have conjured up a list of questions that you should consider asking yourself before you sign yourself up.
- What type of games do you wish to play? The bulk of a sweepstake casino’s gaming portfolio is made up of slots; however, sites like Chumba Casino may offer jackpots, table games, and more!
- Are you looking for quantity or quality? The software behind your chosen sweepstake casino’s gaming portfolio will play a critical role here.
- Will you be looking to purchase sweeps coins? If so, check out what payment methods are offered.
- Will you require additional support? If yes, it may be worth finding yourself a sweepstakes casino that has responsive customer support around the clock.
While there may be no guarantees in the gambling world, one thing we can be sure of is that the experts at Strafe.com will do all they can to help you along the way. So, once you’re confident with your answers to the above, it’s time to check out our reviews on sites like Chumba Casino and let us help you find your perfect match!
What’s the Catch?
Fees. Fees are the biggest catch with sweep accounts.
There are high-interest savings accounts that earn the same or even more than some of these investment accounts. Ally Bank, for example, offers 2.2% interest on its savings accounts, and there are no minimum balance fees or monthly maintenance fees. Betterment charges a 0.25% management fee each year, so the more money you make, the higher your fees will be.
Sweeping money into an investment account will always benefit the investment broker. Since you’re using their services, it’s fair enough that you have to pay for it. But over time, fees can eat away at your earnings if you’re not careful.
There’s also volatility to consider. Anytime you invest, you run the risk of losing money. Money in a savings account usually doesn’t disappear. You have to understand that with sweep accounts, your excess cash is going into the market.
Cash Sweep Definition in Debt Schedule
The discretionary, early pay-down of debt reduces the principal balance coming due on the date of maturity – which decreases the credit risk of the borrower.
The reduction in debt principal also causes the interest expense (i.e. the periodic payments to the lender in exchange for the borrowing) to decline.
Certain debt providers such as senior lenders (e.g. corporate banks), who prioritize capital preservation above all else, will gladly accept early payment with either minimal (or no) early prepayment penalties imposed on the borrower.
In contrast, other returns-oriented lenders will typically issue debt with provisions prohibiting early prepayment either for a specified period or for the entire duration of the loan. Such lenders may also charge substantial prepayment penalties even should early prepayment be allowed.
Sweepstake casinos offering cash prizes
Chumba Casino
Chumba Sweeps Casino is one of the most popular online sweeps casinos in the USA. This popular game offers both slots and table games which makes it very similar to traditional online casinos. Anyone who decides to play sweepstakes online for money on Chumba Xasino can choose between:
- Slot games
- Table games
- Jackpot games
Games
If you can’t decide which one you want to try, we don’t blame you. We couldn’t decide whether so we simply tried them all and selected our favorites. If you are more in a mood for some slot game or some jackpot slot game then you should try some of these games:
- Golden Oz
- Dancing Gold
- Wild Roads
- The Sand Princess
- Celtic Goddess
- Stampede Fury
Table Games
If you are more of a fan of table games, we tested them as well and chose the ones we believe are worth paying attention to. Of course, this is only our personal preference list. There are 1000s of amazing games to choose from and in case you don’t find anything you like on this list you can still research and find the best live dealer casino at your liking.
- Blackjack
- Roulette
- Jacks
- Video poker
All the games start with as low as 0.01 sweep coin. There are more games to choose from, starting from the live social casino games, to playing for cash and so much more. Chamba offers the best online sweepstake experience to their players. Navigating around the browser-based system is easy and that includes visiting the banking and account areas.
Chumba Casino accepts sweepstake players from the USA and offers cash prizes. It also gives you free sweep coins just for logging in. It is worth logging in daily even if you are not planning to play that day just to collect the free sweep coins you can later use to play with or to replace with a cash prize or free gold once you collect enough sweeps.
Luckyland Slots
Luckyland slots are browser-based online sweepstake casino games very similar to other online casino games. The Luckyland casino, unlike other online casinos, offers only slot games. They don’t offer any table or card games. If you are looking for exclusively slot games without any other type of games in the mix, then you should try Luckyland. Luckyland sweepstake casino is available to play in the USA. Some of the slot games you can choose from to play sweepstakes online for money include:
- School days
- Ghoul day
- Lucky duck
- Dragon Key
- Mayan Gold
- Pirates Bounty
- Lucky Wheel Galactic Blast
- Mardi Gras money
Global Poker
If you enjoy classic online poker, you will love global poker. In Global Poker, you can play live casino games and live tournaments for a chance to win free gold coins. You can win your gold coins by winning a hand, game, or tournament. You can also purchase additional Gold Coins at any time. Players who take this second option earn a bonus virtual currency called Sweeps Coins. Sweepstakes global poker players can also play in a tournament such as:
- GOAT
- Rattlesnake
- Bounty series
Another plus for Global is the ability to play anywhere. While the site doesn’t have a mobile app, it is browser-friendly and the platform functions well on iPhones, Android phones, and tablets. Like Chumba and LuckyLand, Global Poker is owned by VGW Holdings, a publicly-traded Australian-based corporation regulated by the Malta Gaming Authority.
Table Games
If you are more of a table games fan, Global Poker have got you covered. You can find some traditional table games such as:
- Classic Blackjack
- Premium Blackjack
- Caribbean Poker
If you are not into table games and you enjoy spinning games more than anything in that case….you guessed… Global Poker has got you covered. There are some awesome games to choose from which we would want to especially mention Diamond Panther and Lightning Nudge. While Global Poker doesn’t offer the deep variety of games seen at full Sweeps Coin casinos, it does offer an opportunity for someone looking to dabble in casino games when not at the poker tables. We’d suggest checking out our poker online reviews for more great recommendations!
Russian translation: использование избыточных денежных средств
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| 20:55 Nov 26, 2015 |
English to Russian translations Bus/Financial — Finance (general)
| English term or phrase: Cash sweep |
| (из кредитного договора) CASH SWEEP 5.1. Subject to Clause 5.2, the Borrower shall, not later than 5 (five) Business Days after the beginning of an Interest Period, deliver to the Lender a Cash Balance Report for the previous Interest Period and shall provide the Lender as soon as possible upon request with such supporting materials as may be reasonably requested by the Lender for the purposes of verifying the information contained in such Cash Balance Report. 5.2. The Borrower shall deliver the first Cash Balance Report under Clause 5.1 in respect of the Interest Period commencing on the first anniversary of this Agreement. 5.3. If a Cash Balance Report shows there to be Excess Cash in respect of the most recently ended Interest Period, the Borrower shall, not later than on the 20 (twentieth) Business Day of the current Interest Period: (a) apply an amount equal to the Excess Cash against prepayment of the Loan in accordance with Clause 5.6; and (b) confirm in writing to the Lender that it has made such prepayment, and the amount thereof applied against the Loan. Единственное, что нашел в МТ на cash sweep, это «Автоматическое перечисление избыточных денежных средств на чековые процентные счета»… Не думаю, что это надо писать… По смыслу, скорее «Отнесение денежных сумм в счет досрочного погашения Кредита»… То, что предлагает МТ, может в лучшем случае отражать лишь механику такого «отнесения»… |
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| Local time: 04:25 |
| Explanation:Cash sweep само по себе не указывает, на что будут использованы деньги (отсюда расхождение данного случая с МТ, т.к. там указано слишком конкретно). Поэтому не нужно уточнять в заголовке, куда пойдут деньги — это все разъяснено дальше. |
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| cash sweep использование избыточных денежных средств Explanation:Cash sweep само по себе не указывает, на что будут использованы деньги (отсюда расхождение данного случая с МТ, т.к. там указано слишком конкретно). Поэтому не нужно уточнять в заголовке, куда пойдут деньги — это все разъяснено дальше. |
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You will also have access to many other tools and opportunities designed for those who have language-related jobs
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«sweep up» vs. «sweep out»
As usual in English, there is no precise rule to memorize. Instead, if you understand, through examples, how each phrase directs a listener’s attention or imagination, you can get a feeling for when one phrase or the other is clearest or most appropriate. To understand how the phrases direct imagination, it helps to start with the individual words.
The word sweep primarily means horizontal motion along a surface, especially a motion that pushes or drags objects along that surface in the direction of the motion. The motion of a broom does this, but other things can sweep, too. For example:
The word up in sweep up suggests upward motion of the objects that are dragged along with the motion, as well as thoroughness but not necessarily completeness, analogous to its use in phrases like pick up (to mean cleaning or organizing), clean up, mop up, straighten up, etc. The dirt or objects to be removed are typically on the floor (when sweeping up) or on desks or tables (when straightening up) and move upward during the process of being removed or put in their proper places. Since completeness is not implied, this sentence makes sense:
The word out in sweep out suggests that the dragged objects exit the place. So, sweep out more clearly suggests that that when the sweeping is complete, the place will be empty of the objects to be removed. Analogous to clean out vs. clean up, sweep out more strongly suggests thoroughness, completion, and especially removal.
This wording emphasizes removing all of the debris. The author could have said «sweep up all of the debris»; that would also be correct grammar, but it wouldn’t suggest as clearly that the cage and shelves should be empty when the sweeping is done.
Now you can probably see that when sweep up makes sense, usually sweep out also makes sense, though with a different emphasis. To finish, then, you should see some examples where only one of these phrases can work:
The phrase sweep out doesn’t make much sense here, because we don’t normally think of the sidewalk as enclosing space that can be full or empty, or from which things can exit. But you can sweep off a sidewalk, or sweep dirt off a sidewalk: slide things off a surface by sweeping.
The «titanic struggle» is World War I. This sentence leads you to imagine the war as something like a storm or the wind, but picking people up and dragging them into the war. The phrase swept out would be wrong here because the the intended meaning is not that people will be removed, but that they will become involved.
What Are the Benefits of ICS?
There are a number of benefits that come with using ICS services. One of the most important is the safety aspect. As funds are placed in accounts issued by FDIC-insured institutions, any large deposits made are eligible for full FDIC insurance coverage. Interest rates are also favorable and can be compared to high-quality, fixed income investments. The convenience factor should also not be ignored. With ICS, depositors can manage all their account investments through a single relationship with a bank of their choosing that offers these services.
With the ICS service, your business is able to maintain access to your funds. Limitless withdrawals are possible using the ICS checking option. If you prefer the ICS money market savings option, you can take advantage of up to six withdrawals each month. You will also have the peace of mind that your ICS funds are on deposit in a FDIC-insured and regulated financial institution that is participating in the ICS Network. By putting excess cash balances into your checking account to work with either a money market account or interest-bearing account, you can also earn interest over time.
Sweep Coins
Sweep coins are a virtual casino currency that can be converted into US dollars and cashed out. At online casinos like Chumba Casino, players can sign up and get sweep coins for free as part of their purchased gold coins package. It’s important to know that sweep coins can’t be purchased on their own, and any site which offers this is most likely illegal in the US.
Players can then use their sweep coins to play slots and table games, just like they would at a real money casino. Any winnings can then be converted into real cash using the casino’s own exchange rate. Just be aware that there’s usually a minimum balance required to cash out, for example, having a balance of $50 in sweeps coins.
Other Robinhood Accounts and Services
Robinhood’s primary product is its taxable brokerage account. All of the robo-advisor’s offerings flow through the brokerage account. Through a Robinhood brokerage account, customers can invest commission free in:
- Stocks
- ETFs
- Options
- American Depositary Receipts (ADRs) for over 650 globally listed companies
- Cryptocurrency
Robinhood Gold is a paid subscription available to its customers. With Robinhood Gold, customers have access to additional tools and features like:
- Bigger instant deposits (for eligible customers)
- Professional research from Morningstar
- Level II market data from Nasdaq
- Margin investing (for eligible customers)
Robinhood Gold costs $5 per month, which includes the first $1,000 of margin. Customers who invest on margin pay an additional 5.00% yearly interest on margin use above $1,000.
Read our in-depth Robinhood review for details on investing and retirement accounts through the robo-advisor.
Access on the Go
Robinhood accounts are accessible through its mobile app, available on iOS (4.2 stars out of 5 on the App Store) and Android (3.9 stars out of 5 on Google Play). Through the app, Robinhood customers using the cash management feature can:
- Set up direct deposit
- Transfer funds
- Pay bills
- Send checks
The mobile app is also where customers can invest in Robinhood’s various offerings, view transaction history, access account statements, use trading tools and more. Although Robinhood partners with banks for its cash management account, there is no option to deposit checks through its mobile app.
Customers also have access to a knowledge base of articles through the Robinhood website. If you have general questions about Robinhood or its accounts, chances are you’ll find the answer you’re looking for there. You can also send direct messages via Twitter to @AskRobinhood.
Cash Sweep Analysis in Project Finance
By John Yeldham
Wednesday 26th October 2011
Stand-alone cash sweep analysis is an alternative metric for refinance risk and repayment ability in cash flow models for project finance. This tutorial outlines the key features of a modelling cash sweep calculation and its application in analysis of a project finance model.
During a cash sweep, 100% of cash flow available for debt service (CFADS) is used to repay principal and interest.
Stand-alone cash sweep analysis is used to calculate the amount of time it takes to repay the debt in full and should not be confused with cash sweep mechanics governed by the term sheet.
It is an alternative to interpreting debt metrics, such as the loan life cover ratio (LLCR) and project life cover ratio (PLCR), which also analyse the project’s ability to repay debt. It is a quick and useful way of analysing the impact of downside scenarios.
Application of cash sweep analysis in a project finance model
Cash sweep analysis can be applied on the base case but will be the most beneficial when applied on a series of downside scenarios. A cash sweep that demonstrates debt being fully repaid in the most conservative downside scenario will reinforce the soundness of the project. Benefits include:
Quicker modelling
It is easier to set up than all the mechanics needed to model the complete interpretation of a term sheet cash sweep that is triggered by financial covenants, but provides comparable levels of analysis.
Dynamic analysis
The start date of the sweep can be set up as an input, which makes it flexible. This can then be set to either the start of the debt facility, end of completion or the debt maturity to analyse refinance risk.
Effective communication
A graphical representation of the closing debt balance in the cash sweep account and in the usual debt account gives a good understanding of the project’s cash flow characteristics.
Play sweepstakes online for money FAQ
Are sweepstakes casinos legal?
Currently, casino sweepstakes are legal in 49 states, including New York. Sweepstakes casinos and poker sites are a great alternative if you don’t have the option of playing at real money NY casinos. These sites allow you to play popular casino games where you can win prizes and convert to real cash prize redemptions.
How do sweepstakes casinos work?
Sweeps casinos use two distinct types of currency. One is known as sweepstakes cash or coins, and these are the ones you need to purchase to play real money slots and table games, or even poker. ..Players are welcome to purchase either, so long as they are happy with the products they can use the currencies on.
How do you get money in Chumba Casino?
You can use Sweeps Coins to play Chumba Casino games for a chance to win additional Sweeps Coins. Sweeps Coins that you win during gameplay are available for you to redeem for cash prizes. Before you will be able to redeem Sweeps Coins for prizes, you must play them through one time.
Can you win sweeps coins?
When you use the sweepstake currency to play a game, you can redeem any winnings for cash prizes. On that same track, unlike a casino app that pays real money, you also can’t play sweepstakes online for money because you win Sweeps Coins, not real cash.
Is global poker licensed and regulated?
Global Poker’s sweepstakes promotions and prizes are regulated by the Malta Gaming Authority. It’s not easy, or cheap, to be licensed by these guys, and we fully support their mission to make sure that our games are fair, transparent to players and to prevent crime, corruption, and money laundering.
Cash Sweep Modeling
In Excel, the formula for the cash sweep must calculate the free cash flow once all required payments are met, including the mandatory amortization of debt.
The excess cash is the amount remaining once all of the following have been accounted for:
- “Rolled-Over” Excess Cash on the B/S from the Prior Period
- Cash Flow from Operations in the Current Period
- Cash Flow from Investing in the Current Period
- Cash Flow from Financing in the Current Period
If the borrower has remaining excess cash, the borrower can periodically pay down debt early – assuming the credit agreement does not contain language prohibiting such prepayments.
Additionally, the minimum cash balance of the company (i.e. the amount of cash required to be on hand by the company to fund working capital needs) must also be taken into consideration.
Key features in modelling the stand alone cash sweep
Step 1: Determine cash flow used for cash sweep
The cash flow used for a stand-alone cash sweep is CFADS less interest payable on the cash sweep debt balance – cash available for principal.
SCREENSHOT 1: CASH FLOW USED FOR A STAND-ALONE SWEEP
Step 2: Set-up flag for sweep start date
Setting up a flag that illustrates when the sweep is in place enables the start date to change and helps to reduce the complexity of the mechanics in the cash sweep debt account. The flag drives off the sweep start date and is a simple binary result.
SCREENSHOT 2: SETTING-UP FLAG FOR SWEEP START DATE
Step 3: Set up a stand-alone cash sweep account
The stand-alone cash sweep account is set up so that during the periods before the sweep, the repayment is the scheduled principal and once the sweep starts the repayment switches to the cash available for principal.
SCREENSHOT 3: CASH SWEEP CALCULATIONS
Screenshot 3 demonstrates that during the period ending 31-Mar-15 (before the sweep start date of 1-Apr-15), the repayment is the scheduled principal of USD 7.27 Million and once the sweep starts the repayment switches to the cash available for principal, i.e., USD 9.69 Million in period ending 30-Jun-15.
Step 4: Determine the payback and repaid date
The analysis on the debt account gives us the repaid date and the time it takes to repay in the cash sweep.
SCREENSHOT 4: ANALYSIS TO DETERMINE THE PAYBACK AND REPAID DATE IN THE CASH SWEEP
The example above shows the debt is fully repaid by 31-Dec-17.
Step 5: Create Graph
Finally, the sweep analysis can be compared against the debt account by presenting it in a graph.
SCREENSHOT 5: SWEEP ANALYSIS COMPARED AGAINST THE DEBT ACCOUNT
Constraints with a stand-alone cash sweep
- Tax calculations are not as accurate as in the modelling of the full term sheet.
- The flexibility can sometimes cause confusion. Make sure to present all timing assumptions clearly to decision makers.
Summary
Sweep accounts with robo advisors can be a great hands-off way to grow your investments. If you’re someone who just doesn’t have the interest or time to keep tabs on your checking account and manually move money, these accounts may be perfect. And if you’re already investing with a robo advisor, this could be another way to maximize what you’re getting out of it.
For Millennials, in particular, sweep accounts hold a lot of allure. A generation bogged down by student loan debt and saddled with stagnant wages means that it can be hard to find extra money to invest. It’s also intimidating to invest when you’re a total beginner. Sweep accounts take the burden of investing off Millennials’ hands. Plus, they’re a chance to continually invest rather than waiting to accumulate enough money in a savings account to transfer to an investment account in one bulk payment of say, $1,000.
All in all, sweep accounts can be a great way to grow your investments over time, as long as the fees make sense. Take the time to really familiarize yourself with how much you’ll be paying in fees each year, and match that against your expected returns. The last thing you want is to lose money because you don’t fully understand your fees.
Sweep Accounts Versus Other Alternatives
Using a sweep account with your brokerage firm isn’t your only option.
Some sweep accounts don’t offer interest rates or returns that can beat your other options.
If you love your brokerage account but their sweep accounts don’t offer great benefits, consider using one of the following alternatives.
Money market accounts
A money market account is a type of deposit account. These accounts are often FDIC insured up to $250,000.
Depending on the institution you use, their interest rates may be lackluster or fairly decent. Shop around to find an institution that offers a money market account with a decent interest rate.
Make sure they don’t charge a ton of fees and offer any other services you need before you open an account.
Money market funds
Money market funds are easily confused with money market accounts but are not the same thing.
Money market funds are not usually FDIC insured. That means they may lose value.
Even so:
Many money market funds offer stable returns except in rare cases. You may be able to purchase a money market fund through your brokerage account.
Make sure you understand any fees involved before you purchase a money market fund. Fees can eat away at your returns, especially if you make frequent trades with money market funds.
Savings accounts
A savings account can be a decent alternative that is FDIC insured up to $250,000. While savings accounts at brick-and-mortar banks normally do not offer great interest rates, online high-yield savings accounts can.
Many online-only banks offer extremely low fees and high interest rates due to the fact they don’t have the overhead costs associated with running a branch network.
Search for a high-yield savings account that offers the services you need while keeping fees low.
Gold Coins
Want to play play sweepstakes online for money? Gold coins can be purchased in bundles at sweepstakes casinos. These coins can then be used to play slots and other games for fun, with any winnings adding to your total gold coins balance.
Some casinos might even give packages of gold coins for free when you sign-up and open a new player account. The main thing to know is that this virtual currency has no real-world value and cannot be exchanged for sweep coins or cash.
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Cash Sweep Pros/Cons
One of the key incentives for a company to opt for a cash sweep, other than lowering its interest expense burden, is to positively impact its credit profile – i.e. contributing to a lower debt-to-equity (D/E) ratio.
Early payment improves the company’s financial stability as well as its ability to secure debt financing on a later date when cash is running low (or refinancing in a lower-interest-rate environment).
One drawback, however, is that the reduced interest expense means the “tax shield” benefit of debt financing is also reduced (i.e. the tax savings caused by interest expense lowering taxable income).
Lenders set different minimum return hurdles based on their risk tolerance among other various factors, so their willingness to allow for cash sweeps and the associated fee structures tends to be very specific to each particular situation.
By charging a prepayment penalty, the lender is protecting the yield on their debt and receiving compensation for reinvestment risk (i.e. the risk of finding another borrower), which offsets the interest expense savings of the borrower, As a result, bonds and riskier debt securities lower in the capital structure are costlier forms of debt financing.
A borrower must weigh the pros/cons of using excess cash to pay down debt early, as the benefits of lower interest expense and reduced credit risk must outweigh any prepayment penalties incurred.
