Foreign banks with U.S. branches (often referred to as “Yankee banks”) utilize Yankee Sweep to attract large deposits from sophisticated investors who are looking to balance competing demands for returns, risk management, and liquidity. Depositors can choose where they would like to place deposits from lists (sets) of international banks that have U.S. chartered branches subject to Federal Reserve Board oversight. These lists include many of the largest banks in the world that have ratings from Standard & Poor’s, Moody's, or Fitch. Generally, deposits will be distributed evenly and the interest rate earned will be a blend of rates offered by the banks on each list. In addition to credit diversification, bank lists may offer diversification by country.
A cyclical product, Yankee Sweep tends to be utilized by strong, international banks seeking U.S. dollar deposits and, during such times, its yields can outperform those of prime money market funds. Beyond rate potential, Yankee Sweep can offer depositors daily liquidity1 with no money market mutual fund redemption gates, fees, or floating net asset values.
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Also know that Promontory Interfinancial Network offers a number of less cyclical services that can help banks, brokerage firms, and other financial institutions to build valuable relationships and, for banks, to keep or sell the underlying funding.
 Funds may be held in MMDAs and, under federal regulations, banks may require seven (7) days advance notice of withdrawals for such funds.