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Interesting. Is that a service banks offer? I suppose that it would mean that the bank truly could not lend against deposits that use this mechanism, so I wonde
by flerchin 4y ago
Interesting. Is that a service banks offer? I suppose that it would mean that the bank truly could not lend against deposits that use this mechanism, so I wonder how much they would charge for this.
- johnrgrace 4y agoYes banks offer this through a network with others banks,and they have reciprocity so if I puts $250k in another members bank they put $250k in my bank so the members banks don't really "lose" deposits. Net, the deposits can be used by the bank in the same way they usually are. A sweep account is a very common business account and most banks offer this, if you don't pick it based on your balances they'll call you up and try and sell you this service. SVB strangely did not have this product for some reason.
- zamnos 4y agoI don't know about banks but eg Wealthfront will do that for you and give you 4.3% APY on cash! https://www.wealthfront.com/cash-account-participant-banks https://www.wealthfront.com/cash-account-participant-banks