Cash Concentration and Sweeping
Consolidate balances from multiple operating accounts into a single concentration account at end of day. This maximizes your earning potential on overnight balances and simplifies cash position reporting. Set up automated sweep transfers that move excess cash above a target balance into a high-interest savings account or GIC holding account.
Reverse sweeps work too. If your operating account drops below a minimum balance, configure an automatic top-up transfer from your reserve account. The Bank of Canada's overnight rate influences how valuable these sweep arrangements are — when rates are high, even one day of idle cash in a non-interest bearing account is money left on the table.