Money Market Sweep

This investment product provides for-profit organizations with an opportunity to earn a competitive rate of interest, without the transfer or check limitations associated with most Money Market accounts. Interest rates are tied to account balances, where higher balances earn higher rates. Funds above a pre-determined target balance are swept into an interest-bearing account. Funds are swept back to the non-interest bearing account to cover checks and other withdrawals only as needed.

Zero Balance Account

This account structure allows the client to maintain idle cash in an interest-bearing concentration account, with funds transferred to the Zero Balance Account (ZBA) only when checks or other debits are presented for payment.

Line of Credit Sweep

For clients that typically have an outstanding balance on their revolving line of credit, the Line of Credit Sweep can provide significant savings and convenience for the client. Excess cash is swept from the client's operating account to pay down the line of credit, thereby reducing the client's interest expense. Funds are drawn back from the line of credit only as needed.

Repurchase Account 

This account works like an interest-bearing checking account, however it provides clients with collateral for their deposit dollars. This account is often utilized when a client is required to maintain collateral protection for their deposits in excess of the FDIC limit. Interest rates are tied to account balances, where higher balances earn higher rates. The Repurchase account can be set up as a sweep account with a target balance or as a single account.

Repurchase accounts are a sale of marketable securities from the bank to the investor, where the bank agrees to buy back the securities the next day at the same price plus interest. Because the bank collateralizes Repurchase accounts, they take on characteristics of a collateralized overnight loan from the investor to the bank.

When you discuss Treasury Management Sweep accounts, do the following:

1. Discuss Features and Benefits

   In order to feel comfortable selling products or services or even referring individuals to CCB, it helps to know what the product or service is (feature) and how it helps individuals (benefits). Below are the features and benefits of the Treasury Management Sweep accounts.

   Features

   • Unlimited transfers from the Money Market account
   • FDIC insured up to $100,000
   • Automated investment of your daily idle cash
   • The flexibility to link multiple accounts to your Money Market Sweep account
   • Monthly fee - not daily fee
   • Earn interest on idle funds
   • Reduces interest on Line of Credit Sweeps-excess cash is swept from the operating account to pay down the line of credit, thereby reducing the clients interest expense

   
   

   Benefits

   • Each dollar reaches its full potential in investment earnings
   • Daily interest earnings at a competitive rate
   • Full automation eliminates the need for manual transfer of investment dollars, and maximizes investment earnings
   • Automatic transfer of funds
   • Maximizes the best use of your funds
   • Reduces interest expense by paying down the loan balance with idle cash
   • Saves time by eliminating daily funding decisions
   • Maintains greater control over disbursements, and fully utilizes idle balances in the client's commercial checking account

2. Identify Opportunities

   Always be on the lookout for businesses who may benefit from Sweep accounts. Below are examples of prospective clients.
   
   

   • Businesses that want to earn interest on excess funds, yet needs to keep funds readily available
   • Business clients who call to make transfers
   • Businesses with multiple accounts (for example: payroll account, merchant account, operating account)
   • Relies heavily on a Line of Credit
   • Business that have excess operating funds who want to invest and keep it liquid
   • A business that would like to keep its payroll account at a zero balance, while keeping its deposits in an interest-bearing account

3. Discover Client Needs

   Before you recommend a product or service to a client, prospect, or friend, it only makes sense to recommend things they might actually need or like. This is why it's important to ask questions that help us gain insight about an individual's banking preferences.

   
   

   Sales Associates

   To identify the Treasury Management product for each prospect based on his or her needs, you need to ask qualifying questions and listen to verbal clues. Below are examples of qualifying questions and clues:

   • Do you plan on having separate operating and payroll accounts?
   • Do you rely heavily on lines of credit?
   • Would you like to keep any excess/idle funds liquid while investing them?
   • How many transfers do you plan to make a month?
   • Ms. Paulson, have you thought about opening up a separate payroll account for your employees?

   
   

   Some common statements you might hear from clients are:

   • "I'd like to be able to earn interest on my checking account. Is that possible?"
   • "I've had some money sitting in the checking account for some time now. I'd like to earn some interest on it if possible."
   • "Geez, I think I call you everyday for a transfer!"
   • "Is there anything I can do to make money on my idle funds?"
   • "I am getting ready to open my title insurance company. I will need to have collateral on my escrow accounts."
   • "I keep getting my operating expenses and payroll expenses mixed up. Can you help with this?"
   • "I'd like to earn the best bang for my buck. I would prefer not to have any money left in my checking account and only have money in there when it is needed."
   • "Because we are offering terms to our customers, it is hard to have the necessary cash on hand that we need to cover bills at the same time."
   • "We need to get a line of credit."

   
   

   Non-sales Associates (Take it to 10)

   If you do not feel comfortable with Sweep accounts, but are working towards your Take it to 10 goals, do not focus on a specific product. Instead, ask if the prospect is interested in the services provided at CCB. To do this you might say:

   I work at Capital City Bank and we offer several products and services designed to meet your banking needs, including Treasury Management Sweep accounts. Would you be interested in learning more about them with an associate of mine?

4. Recommend Products/Services

   When you have identified a need or learned about a prospect's banking preferences, you are ready to make recommendations that align with his or her goals.

   
   

   Sales Associates

   Below are examples of what you might say when recommending Treasury Management Sweep accounts after having used the qualifying questions.

   I think you would enjoy taking advantage of a Treasury Management Sweep account. Most clients I work with love this service because it keeps them from overdrawing their account while keeping money in separate accounts. During processing, any funds needed to cover debits for the day will automatically transfer for a low monthly fee, rather than a daily fee. Do you have any other questions about this service? 

   
   

   Non-sales Associates (Take It to 10)

   If you are simply trying to make a referral to CCB, then you are recommending the bank, and even a specific banker. Below is an example of how you make this recommendation.

   
   I recommend that you consider Capital City Bank. I work there and I know it's a great place to bank. CCB is a stable community bank that can help you with your business needs. I am not familiar with all of the options, but I can certainly connect you with a friendly banker who would be willing to help. His/Her name is _______________. 

5. Handle Objections

   It is highly likely that once you make a product or service recommendation, you will receive objections. Before responding, keep the following points in mind:

   • Make sure you understand the question or objection
   • Be empathetic
   • Address the question or objection even if you can't change the product or service
   • Check with the prospect to make sure he or she accepts your response or explanation

   
   To respond to objections, use Feel, Felt, Found to structure your responses. Below are examples of objections and suggested ways of responding.

   
   

   Sales Associates

   Client Objection: "Why would I pay you to transfer money when I can do it myself?"

   Feel: I understand that you can initiate your own transfers.

   Felt: Many clients have felt the same way.

   Found: This service will give you peace of mind knowing that your debits will be paid and you will be spared the overdraft fees. Now, you will be able to leave work at the office, and not have to worry about transferring money to make sure your items are being paid. How does that sound? 

   
   

   Non-sales Associates

   Client Objection: "I'm not sure if I am ready."

   Feel: I understand you may not be ready yet. 

   Felt: Most people like to compare a few places or get recommendations before doing something.

   Found: Most people I talk to find that Capital City Bank has all the bells and whistles of the big banks with a small community feel. You can always speak to one of our bankers who can tell you more about Treasury Management Sweep accounts with no strings attached. Would you like me to have one of them give you a call?

6. Ask for the Business

   If you did not receive an objection or have already come to an acceptable resolution with the client or prospect, you are ready to ask for the business. Asking for the business is how we move the sale forward. Below are some examples of what you might say to ask for the business.

   
   

   Sales Associates

   • May I open the ___________ Sweep account for you now?  
   • Do you want to sign up for ___________ Sweep account now? 

   
   

   Non-sales Associates

   In the case of an associate who is making a referral for Take it to 10, you are trying to get the prospect to agree to meet with a banker about a need. Below are some examples of what you might say to do that.

   • May I get your contact information so I can have my friend, ___________, call you?
   • Can I get your name and number so I can have a Treasury Management representative call you about opening your Sweep account? 
   • May I have a Treasury Management representative call you to help you find the best product for you?

7. Make a Referral

   If you are a sales associate or non-sales associate who cannot open a Treasury Management Sweep account, but have identified someone who is interested in this service, remember to refer him or her to an associate who can help.

   
   Making referrals at Capital City Bank is as easy as A B C! Below is an example of the ABC method to making referrals. 

   
   

   Acknowledge or Ask questions about a need.

   What do you typically look for in a financial institution?

   
   

   Bridge with a transition statement highlighting how Capital City Bank can meet that need.

   I work at Capital City Bank and we have great products to help meet your financial needs. 

   
   

   Connect to a Capital City Banker that can help.

   Our Treasury Management representatives can help you find the best product/service for your needs. Would you like for me to have a banker contact you at a time that works for you?

8. Process the Sale

   I will have a Treasury Management associate contact you to open your new Sweep account. Is there anything else I can help you with today?

   Sales are processed in generally one of two ways:

   • The associate who can sell the product follows established policies and procedures to close the sale.  
   • An associate connects the person to a qualified banker using a Synapsys referral for the Treasury Management Sweep account to be completed by the qualified associate.
     
     

   Additional Information on Sale Processing

   See the Synapsys referral instructions.