What does “low default cash sweep rate” mean?

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What does “low default cash sweep rate” mean?

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A “sweep account” is an account that regularly and automatically moves money from your checking account into some sort of investment account (like a savings account or something else which pays you interest). An example might be an checking account that takes all the money above $1000 at the end of the month and moves it to a savings account.

There are multiple possible meanings for “rate” here. The most likely is that the investment account comes with some sort of management fee (perhaps 0.01% of the money in the account or something), and this is an advertisement that the rate is low by default.

Another is the percentage you’d earn in the savings account, and it’d be saying that this is low by default and that’s bad.

Yet another is that the investment account is related to bonds, and they’re talking about the “default rate” of the bonds (low is good).