Magazine article American Banker

Morgan, American Century Offering Same-Day Sweeps

Magazine article American Banker

Morgan, American Century Offering Same-Day Sweeps

Article excerpt


J.P. Morgan & Co. and American Century Investments have developed their first joint product for banks.

The Same-Day Sweep Program lets banks offer their corporate customers automatic sweeps into any of four J.P. Morgan money market funds.

The companies also provide the sweep technology, along with record keeping, statement generation, and compliance reporting.

Morgan, a New York banking company, and American Century of Kansas City, Mo., are marketing the program to banks with $6 billion or less of deposits since larger banks tend to use their own money market funds for sweep accounts, said David Larrabee, the head of bank sales for American Century.

The companies-which foresaw such cooperative ventures when Morgan took a 45% stake last year in American Century-are touting the program's ability to move money from corporate checking accounts to money market funds on the same day.

Sweep product providers, including banks and mutual fund companies, sometimes complete a sweep the next day, a practice that gives customers a slightly smaller profit.

A recent survey of 149 banks that offer money market sweep products found that 107 offer same-day sweeps and the rest offer next-day sweeps.

Though the relative advantage of a same-day sweep is small, many banks use it as a selling point, said Michelle Hoffmann, a senior analyst at Treasury Strategies Inc., the Chicago firm that did the survey.

"It's a competitive business," she said.

Sweep accounts move idle funds from checking accounts into short-term investment products like money market funds. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed


An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.