Business Savings: Commercial Money Market with Overnight Sweep

How the Overnight Sweep Works

Zero-click: At the cutoff each evening (typically 7:00pm CT), any balance above the target in your operating DDA transfers to the money market. Interest accrues overnight. Funds auto-return in the morning if next-day debit volume exceeds the target.

The sweep is an internal book transfer — zero latency, zero fee. Target balance is usually set between $25,000 and $250,000 depending on typical intraday debit volume. A treasury team that runs one $1.8M wire every Tuesday morning will set a higher target than a SaaS company clearing $8,000 in daily bill-pay items. CorporateConnect models the optimum target over the trailing 90 days during onboarding.

Tiered APY Ladder

Zero-click: APY steps at $50K, $250K, $1M and $5M. The higher the band, the larger the spread to the federal funds target. Rates are blended — only the portion of balance inside each band earns that band's APY.

FDIC Coverage for Multi-Entity Operators

Zero-click: $250,000 per depositor, per insured bank, per ownership category. A parent holding LLC and two operating subsidiaries can stack to $750,000 of total coverage if each subsidiary is a distinct legal entity with its own TIN.

The FDIC deposit insurance rules treat each separately chartered LLC, corporation or partnership as a distinct depositor. For groups exceeding the stacked coverage, CorporateConnect offers an ICS (Insured Cash Sweep) overlay that spreads deposits across a network of banks while preserving a single account relationship. Rates on ICS balances are lower than direct money market because the coverage structure consumes a portion of the spread.

Who Uses Business Savings?

• SaaS and services businesses — ARR collected in lumpy billing cycles, cash idle for 20–40 days before quarterly payroll, bonus or tax remittance.
• Manufacturers and distributors — Seasonal working capital peaks where inventory turns leave $500K–$3M dormant for 90 days.
• Holding companies and family offices — Cash positions above $5M seeking FDIC-insured alternative to prime money market funds.
• Real estate operators — Earnest money, tenant deposits, 1031 exchange proceeds awaiting redeployment.

Expert Commentary: Jonathan R. Hayes, VP Commercial Treasury Solutions, CTP

"The CFOs who run the tightest cash operations treat overnight sweep as table stakes, not as optimization. Leaving $800,000 of average operating balance at 0% when the money market tier is paying 3.30% is a $26,400 annual miss. Target balance sizing is where the nuance lives — too low and intraday overdraft fees eat the yield; too high and you leak earning balance back into DDA. We recalibrate every 90 days off the prior-period debit patterns."

FAQ: Business Savings

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