Introduction to Federal Reserve Account Sweeps

The Federal Reserve Sweeps feature allows banks, through an accounting process, to sweep customer balances between two transaction and non-transaction virtual sub-accounts daily. Users can then search individual customer accounts to review the Fed Reserve Sweeps balance details.

Users can also produce daily trail balances providing the balance details for all accounts within the Federal Reserve Sweep process.

For the products defined in the parameter table, when a new customer checking account is created, the system creates two additional sub-accounts. One is a transaction account (virtual Sub-Account 1), and another is a non-transaction account (virtual Sub-Account 2), which is utilized for the Federal Reserve Sweep process. These virtual sub-accounts are off-balance-sheet accounts. Daily, the system sweeps funds between the two virtual sub-accounts based upon a target balance concerning the customers' daily activity checking account.

Temenos Transact monthly analyzes each account associated with the Federal Reserve Sweep feature, and a new target balance is determined based on the average monthly balance. The balances are then reallocated between the two sub-accounts based on the new target balance.