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Introducing EZ Sweep: Convenient. Simple. Profitable.

From the CEO
August 31, 2015

Dear Members:

As I discussed in Solutions last month, I’m excited to let you know about some changes we’re making at Corporate One. These changes give you more options and increased flexibility when it comes to managing your cash. I mentioned I’d have details for you in the future, and, as promised here they are.

Beginning October 1, we are introducing a new investment account called EZ Sweep. The addition of this new account makes it even easier to invest your excess overnight funds by providing an automated solution. For those cash managers that choose the EZ Sweep account, they won’t have to worry about moving their excess cash each night. We’ll do it for them.

Key info

  • Contact us by September 16 to start using EZ Sweep by October 1.
  • Contacting us between September 16 and October 1 means we'll have your EZ Sweep account open by October 19.
  • After October 19, we will be able to turn on the EZ Sweep option within 1 business day.

With the EZ Sweep account option, funds left on deposit in the credit union’s settlement account at the end of the day will be automatically invested into the EZ Sweep account at a higher rate of return. This means 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 the credit union’s settlement account.

I will be mailing out a letter early next week to all CEOs about the new EZ Sweep option, and I’ve included an FAQ section for you in this article, which offers more details about how the EZ Sweep account works.

When you’re ready to start taking advantage of the EZ Sweep account, just contact your Corporate One investment representative at 800/366-2677.

  • If you’d like to start using the EZ Sweep account right away on October 1, let us know by September 16.
  • For requests received by our reps between September 16 and October 1, we’ll have your EZ Sweep account opened on October 19.
  • After October 19 and moving forward, it will only take one business day to turn on the EZ Sweep option.

I also wanted to remind you that in addition to adding the EZ Sweep option for our members, we’re making some other changes to our cash management accounts. We recently added an earnings credit account to offer members increased flexibility for expensing the services you receive from Corporate One. In addition, all members are probably familiar with our settlement account and our overnight Fed Funds Plus account. Beginning October 1, 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.

If you have questions about these changes or any of our other cash management services, please contact your Corporate One member relationship executive or Member Services at 866/MyCorp1. We’d love to hear from you if you have additional ideas of things we can do to simplify your cash management. You can also contact me directly at any time at 614/825-9300 or lbutke@corporateone.coop.

Best,
Lee C. Butke
President/CEO
 

EZ Sweep Account FAQs

Q. What accounts are “swept” if I choose the EZ Sweep account?
A. If you choose to use the EZ Sweep account option, funds will be swept at the end of the day out of your primary settlement (S010) account (soon to be The One Account) into the EZ Sweep account and then swept back each morning. We will only sweep out of and into your primary settlement account.

Q. What is the rate being paid on the EZ Sweep account?
A. The rate paid on the EZ Sweep account will be a market rate that will be posted each day along with our other Daily Rates on our website at www.corporateone.coop. As of the date of this article, our expected rate of return is 10 basis points, but you are advised to monitor the rate daily.

Q. How is interest accrued, and how often is it paid out?
A. Interest is accrued on an actual/365 basis and paid out daily into the EZ Sweep account.

Q. Is there a fee to use the EZ Sweep account?
A. There is no fee for using the EZ Sweep account option.

Q. Can I sweep a portion of my funds into the EZ Sweep account and also invest funds in the Fed Funds Plus account (soon to be the Daily Market account)?
A. No, you may not use both options at the same time. If you choose the EZ Sweep account, you will no longer have access to the Fed Funds Plus (Daily Market) account. However, if you choose the EZ Sweep option, you can choose the Fed Funds Plus (Daily Market) account option at a later time.

Q. How often can I turn on or off the EZ Sweep option?
A. Once you turn on the EZ Sweep option, you have the ability to turn it off only once during a calendar month by contacting one of our investment representatives. It can be turned on anytime.

Q. When does the sweep occur?
A. Funds are swept out each business day in the evening after all settlement has occurred, usually around 8:00 p.m ET. Funds are then swept back the next business day before any settlement activity, usually before 7:30 a.m. ET.