Business Banking - Repurchase Agreements

       Order Checks
Order Business Checks and Forms
ChemCash Account

A ChemCash Account is available to all business customers who have excess cash balances that they would like to invest. This account is a special repurchase agreement relationship in which all balances in an interest-free account above a specified figure are automatically transferred each night into an interest-bearing investment pool*.

  • Transferred funds are collateralized by securities the bank owns, making this a low-risk way to earn interest on your daily balances while still having immediate access to your funds
  • Collected funds are invested based on a variable interest rate that is set by the bank, in lieu of market conditions
  • All funds are kept in the same checking account, so no additional work is necessary to manage your balance

Features of ChemCash Account:

  • Competitive rate of interest
  • Funds are accessible
  • Monthly statement detailing all account activity
  • Easily view account with electronic banking
  • Ability to place stop payments
  • Night deposit service available

Cash Management Account

A Cash Management Sweep Account is available to all business and municipal customers who have excess cash balances that they would like to invest. This account is a repurchase agreement relationship in which all collected balances in an interest-free account are automatically transferred each night into an interest-bearing investment pool.

Transferred funds are collateralized by securities the bank owns, making this a safe and worry-free account.

At the end of each day after deposits, checks and ACH activity have posted or cleared the account, the remaining balance is then transferred into an interest-bearing investment pool without a "floor" balance requirement. Chemical Bank helps you earn more by investing "all" of your funds. Service charges are calculated based on the account type and the account activity.

All collected funds are invested based on a variable tiered rate that is indexed to the current Fed Funds rate.

All funds are kept in the same demand debit (checking) account, so you do not need to track transfers between accounts on a daily basis. The funds are liquid and there are no minimum requirements.

* Investment products are not bank deposits, not insured by the FDIC or any other government agency, not guaranteed by Chemical Bank, and may go down in value.


(Back)