Overnight Sweep Account
Excess Balance Account (EBA)
Due to the cap on the deposits that can be retained in the Performance Tiered Account (PTA), Catalyst Corporate offers credit unions an option for sweeping deposits that exceed the limit into a competitive overnight investment.
Currently, Catalyst Corporate facilitates credit union participation in an Overnight Sweep Account (the EBA) at the Federal Reserve Bank (FRB). Automatic sweeps move funds into the EBA at 4 p.m. Central Time daily, and back to the PTA at 8 a.m. Central Time the following morning. The interest paid by Catalyst Corporate on capitalizing credit unions’ excess balances is equal to the interest paid to Catalyst Corporate by the FRB, less two basis points.
Various overnight investing options perform better during specific phases of the business cycle, and rates are impacted by environmental factors. In the future, Catalyst Corporate will offer its members other options, such as “As Agent” Federal Funds and a Money Market Fund, to ensure they achieve the optimal return on excess funds. Catalyst Corporate will provide due diligence and
make set up as convenient as possible for all sweep alternatives.
Features & Benefits:
- The overnight sweep to and from the EBA is automatic.
- There is no ongoing work for credit unions following the initial paperwork.
- Catalyst Corporate assists with due diligence and account set up.
- Catalyst Corporate interest paid is very competitive for overnight funds.
Download a copy of Catalyst Corporate's EBA Agreement with the Dallas Fed.