This is a commercial service available to businesses who keep excess balances in their checking account. A Target Balance is established that will provide sufficient earnings credit to offset any activity charges. Collected funds in excess of the Target Balance are then invested on an overnight basis in a Repurchase Agreement, earning interest on those invested funds. Interest rates earned adjust weekly based on the average Fed Funds rate for the preceding week. The interest rate is tiered based on your invested balance. These investments are not insured deposits, but they are secured by bonds owned by the bank.
Types of Business Checking