With the Yankee Sweep® service, financial institutions can offer investors a cash management product that helps balance competing demands for returns, risk management, and liquidity.
How Does Yankee Sweep Compare to Prime Money Market Funds?
|Yankee Sweep||Prime Money Market Funds|
|Returns||Yields may outperform prime money market funds||Yields may be lower|
|Liquidity||Daily liquidity1 with no money market fund withdrawal gates or fees||May be subject to withdrawal gates and fees|
How Does Yankee Sweep Work?
Yankee Banks are grouped into different lists from which an investor may choose. Generally, the investor’s deposit will be placed evenly between the banks on the chosen list, and the interest rate earned will be a blend of the rates offered by these banks. Bank lists may offer diversification by country.
1 Funds may be held in MMDAs and, under federal regulations, banks may require seven (7) days advance notice of withdrawals for such funds.