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Cash Sweep Account

Sweep Accounts

We believe it is important to make the best use of your finances - that is our mission.  Earning interest on funds that are not actively invested is a simple way to help maximize your outcomes.

A "Sweep" account is a place to park unused funds and earn interest.   Named for the process of transferring idle funds inside of your investment account into a higher yielding fund, or "sweeping" the funds to a cash account, sweep accounts provide a flexible way to store your funds and earn interest while doing so.


What Is The Purpose Of a Sweep Account?

What Is The Purpose Of a Sweep Account?

A sweep account helps you earn interest on money that is not presently invested. 

A sweep account may hold:

  • New deposits you aren't ready to invest yet
  • Dividends and interest that you don't wish to reinvest
  • Proceeds from selling securities in your account

Benefits of a Sweep Account:

  • Having funds available to invest immediately, instead of waiting 1-3 days for a check or ACH payment to arrive
  • Allocating funds to a sweep account reduces overall risk in your portfolio 
  • Earn interest on funds that are not actively invested
  • Retain liquidity, as sweep accounts may be invested or redeemed at any time

How Do I Set Up A Sweep Account?

If you presently do not have an account with us, please contact us to discuss the various types of accounts available to help you meet your goals.

Lincoln Investment Pershing Accounts:

If your existing Lincoln Investment account has:

  • An account number that begins with letters followed by numbers; and/or
  • Your statement shows "Clearing through Pershing LLC" in the lower right corner;

Congratulations!  You have a Lincoln Investment Account custodied through Pershing, which already has the sweep account program.

 Lincoln Investment Retirement Solutions Premier or Investor Solutions Premier Accounts:

If your existing Lincoln Investment account has:

  • An account number that is all numbers; and/or
  • Your statement shows "Retirement Solutions Premier" or "Investor Solutions Premier" in the upper right corner;

You have a Lincoln Investment Solutions Premier account, which requires action to elect a sweep account. 

In October 2024, Lincoln Investment will be transitioning their self-custody and clearing Solutions platform to Pershing, a BNY Mellon company with $47.8 trillion assets under custody or administration and over $2 trillion in global assets under management.  This change will provide you with expanded investment options, a refined investor website, and comprehensive custodial statements to better meet your growing needs.

One of the many benefits of Lincoln Investment's Pershing partnership is the introduction of a cash sweep program that will facilitate cash and trade settlements within your account and provide an opportunity to earn interest on uninvested cash.  A cash sweep is the automatic process of transferring uninvested, available cash held in your account(s), including deposits, dividends, interest and proceeds from investment transactions into one of the sweep products we have selected as available options for your account(s).

Your positive consent is required to add the cash sweep feature to your account. In the coming months, you will have various options to consent:

  1. Consent from Lincoln’s Investor website homepage (available April 12, 2024) by selecting the link in the Action Required message displayed at the top of the homepage. If you are not registered for Lincoln’s Investor website, sign up now with these quick steps:
    1. Click here and select Sign Up.
    2. Enter your email address, create a password and agree to terms and conditions.
    3. Follow the prompts to confirm your identity.
  2. Consent through the email you will receive from Lincoln Investment via DocuSign (June 2024).

Please read the advantages of this newly available program to provide you with access to enhanced investment options and resources while providing the benefits of Lincoln Investment’s partnership with Pershing.

If you do not consent to the sweep feature, your uninvested funds will be held as a free credit balance and will not earn interest.

Lincoln Investment Changing Custodian to Pershing

As an independent firm, Knox Financial Services has chosen to utilize platforms from Lincoln Investment and Capital Analysts for our clients portfolios.  Our collaboration with these firms provide the technology and resources of a nationally recognized registered investment adviser and broker/dealer.  However, we are not mandated to utilize any specific product or portfolios that either firm offers.   Our Advisors are free to design and customize our clients' portfolios with the your goals and needs being the primary focus.

In October 2024, Lincoln Investment will be transitioning their self-custody and clearing Solutions platform to Pershing, a BNY Mellon company with $47.8 trillion assets under custody or administration and over $2 trillion in global assets under management.  This change will provide you with expanded investment options, a refined investor website, and comprehensive custodial statements to better meet your growing needs.  Knox Financial Services believes this a great enhancement for the technology and resources that will better enable us to help our clients meet their goals.

Lincoln Investment, broker/dealer, member FINRA/SIPC, is Broker/Dealer or Registered Investment Adviser.  Lincoln Investment has over 55 years of proven industry leadership in delivering financial strategies.  As of 12/30/2023, Lincoln Investment serves the diverse financial needs of over 335,000 clients representing $46 billion in assets.  Click here to learn more about Lincoln Investment.

Brokerage custody provided by Pershing LLC, member FINRA NYSE SIPC , a BNY Mellon company.  Bank custody provided by BNY Mellon, N.A, member FDIC.  Pershing has more than 85 years of providing clearing and custodial solutions.  As of 09/30/2023, Pershing has custody of over $2 trillion in assets, while BNY Mellon provided custodial services or administered over $45 trillion in assets.  Click here to learn more about BNY Mellon / Pershing.  BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation and may be used to reference the corporation as a whole and/or its various subsidiaries.

Money Markets

Sweep accounts are created for handling transactions, including trades and withdrawals.  Sweep accounts do pay interest on uninvested funds, but are not considered a long-term investment vehicles.

A money market fund may provide a higher yield and retains liquidity.   The Pershing platform offers 48 money markets from leading manufacturers that may provide a higher return than sweep accounts.   We recommend suitable money market funds for your type of account.

Your Advisor will construct a portfolio designed with your time horizon, risk tolerance and liquidity needs. 

Our Advisors Will Help

Our Advisors Will Help

We work with you to evaluate what type of strategy or combination of strategies may be the best fit for your situation. 

Our advisors have experience with simple to very complex financial situations and the available programs that may work well for your situation.

Let's talk about what makes the most sense for your situation.

Plan Well!  Invest Efficiently!  Relax!

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