Cash management is widely recognized as an important element in the successful management of financial institutions, yet today's market can spread a credit union's cash all over the country! Southwest Corporate offers credit unions several solutions to this situation - the Daily Shares account, Cash Management Fund, and Tiered Accounts. These accounts can help a credit union's cash management strategies by providing a "one-stop" approach to the investment process.

Every day your credit union needs cash for credit card settlement, or ACH origination, or Corporate Checking. But at the end of each business day, it needs an interest bearing home to which it can return extra money. At Southwest Corporate, there are two overnight transaction accounts that provide this solution for members: the Cash Management Fund and the Daily Shares account.

Southwest Corporate's Daily Shares and Cash Management Fund accounts require no compensating balance to maintain and maximize your credit union's earnings by paying premium rates.

The Cash Management Fund is available for members that also participate in the Membership Capital Account. It earns an average Fed funds rate on every dollar available. Although the Cash Management Fund and the Daily Shares accounts work similarly, the Cash Management Fund account earns a rate that is higher than the Daily Shares account.

The benefits of these straight forward overnight transaction accounts include:

• Better than a "sweep" account, because they require no compensating balance.
• Offer daily deposits and withdrawals.
• Simple to reconcile through a weekly or monthly statement.
• Easily accessed through Fed wires, ACH, TranZact, or checks.
• Current rate is available on TranZact.
• Classified as "due from" accounts for Regulation D, which eases the credit union's reserve requirements.
• Serve as a settlement account for all types of transaction activities plus, security sales, maturities and purchases.
• Offer automatic overdraft protection for member credit unions having a line of credit.
• Account holders can receive settlement clearing totals.
• Southwest Corporate member credit unions enjoy the benefit of putting every available dollar to work every minute of every day through the simple use of a Cash Management Fund or Daily Shares account.

For overnight investment accounts, Southwest Corporate's tiered accounts are extremely competitive and are designed to help manage your credit union's settlement activity and overnight liquidity more efficiently.

• The Performance Tiered Account is available to credit unions with MCA membership.
• The Standard Tiered Account is available to credit unions that do not participate in MCA.
• These accounts both offer unlimited transfers in/out of the account up until 3 p.m. central time.

How do the PTA and STA work?

• The balance held in the account determines the interest rate.
• The account pays the highest interest rate on the entire balance, not just on that portion of the balance in excess of the tier's threshold.
• The higher the tier, the higher the rate that is paid.
• The minimum opening balance for either account is $10,000.
• Unlimited transfers are allowed into and out of the account up until 3 p.m. (Central Time); either through TranZact (no charge for transfers) or by phone ($1 per transfer).
• Interest on these accounts will accrue daily on a 365-day cycle and dividends will post monthly to the credit union's settlement account.

Credit unions may deposit funds into an overnight account in one of three ways: by wire, by the cash concentration system, or by mail. Southwest Corporate encourages the depositor to review each type of deposit service to determine the method that is best suited to their needs.

To put this service to work for your credit union, email an Investment Officer at specials@swcorp.org or call 800.405.7067.