Cash & Accounts

Cash Sweeping

Optimise your group cash balance through the automated movement of funds

Earn higher yield and lower overdraft charges with Cash Sweeping, one of DBS’s innovative liquidity management tools. Cash Sweeping allows you to move funds automatically between accounts to achieve a zero or target balance set on each of your business’ sub accounts. With a zero balance setup, surplus funds in sub accounts are swept to and deficits funded from the parent account.

 

 

Why choose DBS Cash Sweeping?

  • Optimise your group cash balance and earn higher yields by investing your consolidated balance
  • Make consolidated idle cash available to sub accounts as additional funding for payments
  • Reduce interest expense since a negative balance is covered by your master account
  • Eliminate the hassle of having to manually report, track and reconcile your various accounts
  • Receive detailed monthly reports on your activities

FAQs

Can DBS support Cash Sweeping structures in different currencies?

Yes, we can support structures in different currencies. However, each structure can only consist of accounts of the same currency.

Can DBS handle back-valued transactions?

Yes, we can. We recalculate your balances for previous dates if there is a back-valued transaction and perform a back-valued sweep accordingly.

What’s the difference between Notional Pooling and Cash Sweeping?

Cash Sweeping involves the physical movement of funds into a master account. While in Notional Pooling, there is no physical movement of funds as account balances are notionally set-off. However, Cash Sweeping creates inter-company loans, because there is a physical movement of funds between accounts belonging to different companies.

Can we do this on a regional basis?

Yes, we have regional liquidity management capabilities such as cross-border sweep and interest optimisation. However, the availability of liquidity management capabilities is subject to regulations in each country.

Why are there surplus funds in my sub account at the end of the day when it was meant to have a zero balance?

Funds on hold in the sub-account are not available for use, and therefore can’t be swept up to the master account. Common examples include GIRO collection transactions and cheque deposits, which are placed on hold until they are cleared the next business day.

 

How do I apply?

Simply email us at idcontactgts@dbs.com or speak with your Relationship Manager.

DBS Treasury Prism
DBS Treasury Prism

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