What is a cash sweep?

A cash sweep is an automatic transfer that moves excess funds from a low‑yield account (like checking) into a higher‑yield account (like savings or a money market), while keeping a buffer to cover spending.

Does this tool connect to my bank?

No. It’s a planning and simulation tool only. You’ll need to set up actual sweeps with your bank or via automation services.

Cash Sweep Optimizer

Q: Is this financial advice?

No. It’s an educational tool. Consult a financial professional for personalized guidance before changing your accounts or automation rules.

Model rules for automatically moving excess cash from checking into savings or high‑yield accounts, while keeping a safe buffer for bills and spending.

Account balances

Current checking balance Current savings balance High‑yield / money market balance

Sweep rules

Checking safety floor Sweep trigger threshold Sweep percentage of excess (%)

Rates & simulation

Checking rate (APR %) Savings rate (APR %) High‑yield rate (APR %) Simulation horizon (months)

Tip: Use your typical monthly spending to set a realistic checking floor that avoids overdrafts.

Important: This tool is a simplified simulation. It does not account for exact transaction timing, fees, or bank‑specific sweep rules. Always confirm details with your bank before setting up automation.

Sweep and interest formulas

1. Excess cash in checking

Excess_checking =
  max(0, Checking_balance − Checking_floor)

2. Sweep amount

Sweep_amount =
  Excess_checking × (Sweep_percentage ÷ 100)

3. Annual interest gain from sweeping

Interest_gain_per_year ≈
  Sweep_amount × ((High‑yield_rate − Checking_rate) ÷ 100)

The simulation applies these formulas each month to show how your balances evolve if you repeatedly sweep excess cash into higher‑yield accounts.

Designing a safe and effective cash sweep

A good sweep rule keeps enough cash in checking for bills and everyday spending, while automatically moving surplus into higher‑yield accounts so it doesn’t sit idle.

Key design choices

Set a checking floor that covers at least one month of typical spending plus a buffer.
Use a sweep threshold so tiny fluctuations don’t trigger constant transfers.
Decide whether to sweep 100% of excess or a smaller percentage to stay conservative.

Worked example

Suppose you keep $2,500 in checking, with a floor of $1,500 and a sweep threshold of $2,000:

Excess = $2,500 − $1,500 = $1,000 (but threshold is $2,000, so no sweep yet).
After a paycheck, checking rises to $3,200. Excess = $3,200 − $1,500 = $1,700.
Threshold is $2,000, so you might raise the floor or lower the threshold depending on comfort.

Using this tool, you can iterate on those numbers until the simulated sweeps feel both safe and rewarding.

Frequently Asked Questions

Does this tool move money for me?

No. It only models hypothetical sweeps. You must set up actual transfers with your bank or automation service.

Can I include multiple checking accounts?

This version focuses on a single checking, savings, and high‑yield account. You can run separate scenarios for other accounts.

Does this consider overdraft fees?

No. It uses a simple floor and threshold model. For overdraft risk analysis, use a dedicated overdraft risk tool and review your bank’s fee schedule.

Is this financial advice?

No. It’s an educational planning tool. Consult a financial professional for personalized guidance.

Related tools

Overdraft Risk Analyzer Monthly Bank Fee Forecast Cash Allocation Strategy Tool

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Information on this site is for educational purposes only and is not financial, tax, or legal advice. Simulations are estimates and may not reflect actual bank behavior. See our Privacy Policy and Disclaimer.