Automated Investment Account (AIA)

The Automated Investment Account (AIA) is an ideal way
to augment company income using excess cash balances.
The AIA is a “sweep” investment program that keeps your
excess dollars working constantly.

How It Works:
A target balance of collected funds is determined, which is the amount of funds necessary to support your checking account activity. Funds in excess of the target balance are automatically swept into an overnight investment account. The minimum investment is only $10,000. When cash is needed to cover disbursements, funds are automatically transferred to the checking account to make up the difference.

Advantages of this service include:

• automatically sweeps excess cash into an overnight investment account
  
• eliminates the need to make daily investment decisions
  
• tiered structure allows for increased rates on higher balances
  
• interest is declared daily and paid monthly
  
• a combined statement makes monthly reconciliation easy

About the Investment:
The AIA investment in an open-ended Repurchase Agreement. A Repurchase Agreement is the sale of securities with the agreement that the securities will be repurchased at a specified rate of interest at a stated time. Under the terms of the AIA, however, funds are not subject to a fixed maturity and may be deposited or withdrawn anytime. Repurchase Agreements are collateralized by U.S. Government and Agency Securities with a market value at least equal to the amount invested. Funds held in Repurchase Agreements are not deposits and, therefore, are not insured by the Federal Deposit Insurance Corporation.

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