Scottrade – SWEEP TO BANK DEPOSIT PROGRAM, What is that?
Today, I look back to the history in my Scottrade account. I see there some transactions like “SWEEP TO BANK DEPOSIT PROGRAM,” and it debits my account? what is that transaction about? I am confused. Can anybody explain to me in simple English.
Scottrade does not allow fee free automatic reinvestment of the dividends that stocks in you account issue. That cash is credited to your account temporarily, then debited when Scottrade moves (sweeps) it into your linked bank checking account (as I don’t deal with them, it also be their own bank’s account).
The Shadow Banking System