Sweep accounts are supposed to be "set it and forget it." Most companies set it once—and then forget about it for years. That's the problem. A sweep arrangement configured three years ago for a different cash position, a different rate environment, and a different banking relationship is quietly costing you yield, or worse, leaving cash exposed where it shouldn't be.
Four things to check on your current sweep
- The target balance is still right. If your operating account's target hasn't been revisited since rates moved, you're either sweeping too aggressively (cushion too thin) or leaving too much sitting at near-zero yield.
- The sweep vehicle matches your risk policy. Many sweeps default into the bank's proprietary money market fund or, worse, an interest-bearing deposit at the same institution— concentrating risk right where you least want it.
- Sweep timing aligns with your payment cycles. End-of- day sweeps can miss same-day ACH or wire activity, creating overdraft fees that erode any yield gained.
- It's reviewed annually, not "since onboarding." Banking products change. Your sweep should be benchmarked against current alternatives at least once a year.
A well-run sweep is invisible. A stale one is a slow leak.
The danger with sweeps is precisely that they're designed to run silently—so a misconfiguration can cost you for years without ever raising a flag. An annual benchmark against current sweep products, paired with a target-balance refresh, usually pays for itself many times over.
When's the last time your team actually reviewed your sweep configuration—not just confirmed it's "working"? CurvedSpace can run that review and benchmark your setup against better alternatives.