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From the CEO: Introducing our new overnight investment option: EZ Sweep

From the CEO
August 26, 2015

Dear Members:

Last month I mentioned Corporate One is turning cash management on its ear – and we are. This month I’m pleased to announce some exciting new cash management account changes, including a new solution to help you succeed: the EZ Sweep account.

Introducing our new overnight investment option: EZ Sweep

Currently, members with a settlement account at Corporate One have one main overnight investment option: our Fed Funds Plus account. Starting October 1, we are introducing a new investment account called EZ Sweep. The addition of this account makes it even easier to invest your excess funds.

For members who choose the EZ Sweep account option, funds left on deposit in your settlement account at the end of the day will be automatically invested into the EZ Sweep account at a higher rate of return; therefore, there is no longer any need to move funds on your own. Early the next business day, funds will be swept out of the EZ Sweep account back into your settlement account. Want to manage your overnight funds yourself? No problem. That’s still an option, too.

Getting things up and running

Current Account Names New Account Names
Settlement Account The One Account
Fed Funds Plus Daily Market Account
  EZ Sweep

In addition to adding the EZ Sweep option for our members, we’re making some other changes to our cash management accounts. All members are probably familiar with our settlement account and our overnight Fed Funds Plus account. Beginning October 1st, we will be changing the names of both of these accounts: The settlement account will now be called The One Account, and the Fed Funds Plus account will become the Daily Market account.

Let me reassure you that the great features of both of these accounts will remain the same. But we’ve changed the names for a couple of important reasons.

First, we are calling the settlement account The One Account because it’s the “One” place where your credit union’s settlement happens – share drafts, forward collection, ACH, vendor settlement, etc. And it’s the “One” place that’s tied to all of your cash management tools. For example, lines of credit, our new EZ Sweep account, term and overnight investment options and your credit union’s monthly billing all tie to The One Account.

Second, the Fed Funds Plus account is now being called the Daily Market account. As a result of the financial crisis, the fed funds market has shrunk considerably and is no longer a reliable indicator of competitive overnight rates. By changing our past practice of indexing this account to the fed funds effective rates, we will have more control to ensure the Daily Market account will continue to offer our members competitive rates.

So what will these changes look like to you? Some changes will be very minor, such as updating the name of your settlement account to The One Account and the name of your Fed Funds Plus account to the Daily Market account on your statements. Other changes will require you to make some choices about how you’d like to manage your cash in the future. For information on those changes, we’ll be getting in touch with you in the coming weeks with details about how you can take advantage of easy cash management using The One Account, the Direct Market account and the new EZ Sweep account.

Lee C. Butke