A high-yield cash sweep investment account is a type of savings account or investment product that offers a higher interest rate than traditional savings accounts. High-yield investment accounts are typically offered by online banks, credit unions, or investment companies. These accounts offer a balance of yield and liquidity, making them a popular choice for those who want to earn a return on their cash while still having quick access to it.
The higher interest rate on high-yield investment accounts is often attributed to a variety of factors such as the absence of brick-and-mortar branches, lower overhead costs, and the ability to offer fewer services. As a result, banks can offer higher rates to their customers who opt for these accounts.
The high-yield cash sweep investment account is designed to be highly liquid, meaning that you can access your funds quickly and easily without incurring penalties or fees. Unlike certificates of deposit (CDs), which require you to keep your money in the account for a fixed period of time, these accounts allow you to withdraw your funds at any time without penalty. To learn more about these types of accounts, read more here.
Some high-yield cash sweep investment accounts require a minimum deposit, while others have no minimum requirement. In addition, some accounts have restrictions on the number of transactions or withdrawals that can be made within a certain period.
Moreover, a cash sweep investment account is one of the most secure investment products in the market. It has been tested with billions of dollars and designed to comply with FDIC regulations. In the event that a cash sweep network member bank has failed, all claims for deposit insurance were paid by the FDIC.
Onyx Private is offering a High-Yield Cash Sweep Investment Account with an average yield of 3.5%, no minimum, and 2 days withdrawal. This brokerage account automatically transfers cash funds into a safe but higher interest-earning investment option at the close of each business day into a money market fund.
