A repo sweep account is an investment account that automatically invests any uninvested cash balances into [[Overnight Repurchase Agreements | overnight repurchase agreements (repos)]]. Repos are securities transactions in which one party agrees to sell a security to another party at a certain price and then buy it back at a later date at a predetermined price. The cash generated from the sale of the security is typically used as collateral for the loan agreement between the two parties. Repo sweep accounts are often used by institutional investors, such as banks and hedge funds, to maximize returns on their short-term cash balances. They are also used as a mechanism to provide [[Interest | interest]] on a commercial checking account which is limited by [[Reg Q]]