what is a sweep account?

[riya]

I’ve been cleaning up my old files and realised I’ve got a big pile of tax paperwork from past years. I’m not sure which documents are safe to toss and which ones I should hold onto permanently. Are there certain tax documents (like returns, W-2s, 1099s, or property-related papers) that you should never throw away? Additionally, how long is it generally recommended to retain supporting records, such as receipts, deductions, or investment statements?

 

[peterkavinsky]

A sweep account is a bank account that automatically transfers excess money into a higher-interest account or investment option, helping maximize returns while keeping funds accessible.

 

[Emly]

A sweep account is a bank or brokerage account that automatically transfers excess funds into a higher-interest account or investment option, such as a money market fund. This helps maximize earnings on idle cash while still keeping the money accessible when needed.

 

[Gsusangrey]

A sweep account is a cash management service offered by banks that automatically transfers funds between a business's checking account and an interest-bearing investment account. This optimizes cash by minimizing idle balances and maximizing interest earnings overnight.

 

[isabel]

A sweep account automatically moves excess cash into higher-interest accounts or investments to earn more. For tax documents, keep returns and property records permanently, W-2s, 1099s, and receipts for 3–7 years, and discard minor bills once reconciled.

 

[Lucas]

A sweep account automatically transfers ("sweeps") excess funds from a checking account into a higher-interest investment or savings account overnight to maximize returns.