Active Investment Account Service

The Active Investment Account Service is another service from Penn Security to help you earn more interest on the money you keep in the bank. Each day, at the close of the banking day, excess funds in your deposit accounts are automatically swept into an overnight investment vehicle called a Daily Repurchase Agreement Account. Your Active Investment Account can manage the investment activity of all your deposit accounts with Penn Security. You earn interest on the available portion of these excess funds for that day.
Your excess funds will be reinvested in a new repurchase agreement each banking day, providing funds are not needed in your deposit accounts to cover checks or other charges.

Fund Level for Transactions
You set the level you wish to maintain in your deposit accounts.
Funds on deposit in your accounts in excess of your desired balance level will automatically be swept into your Active Investment Account on a daily basis.
Conversely, if funds are needed to cover checks or other charges, they will automatically be swept from your Active Investment Account and deposited from your deposit accounts to cover items and restore your desired balance levels.
In addition, you can prioritize the order of your deposit accounts you wish to have funded from the Active Investment Account to cover checks and other charges. This funding will take place before the end of the business day, so you will avoid potential overdraft situations and related service charges.

Service Charge to keep my Active Investment Account
Currently, if you either keep $25,000 or more at all times, or you maintain an average available balance in your account during the month of $50,000, you will avoid any service charges.
If you do not maintain your Active Investment Account during the month so that either of these conditions is met, a service charge of $20 will apply for that month.

Line of Credit
If you have a line of credit with our bank, automatic transfers to or from the line of credit can be added to our Cash Management Product.
If no funds are available in your Active Asset Account to pay for items presented in your checking account, an automatic advance from your line of credit will occur (assuming that the line is not fully drawn).  Similarly, if excess funds are available in your checking account they will be used to pay down any line of credit balance before they are transferred to the Active Asset Accounts.

Not an FDIC Insured Deposit Account 
Your Active Investment Account is not a bank deposit account. Your Active Investment Account is a daily repurchase agreement account. Therefore, while the Active Investment account is not insured by the FDIC, you do have security. Each business day, you purchase an undivided interest in a group of Agency Securities or State or Insured Municipal Bonds in Penn Security's Investment Portfolio which has been transferred to a separate account and is pledged for the repayment of all Active Investment Accounts the next business day - with interest.
This feature can be attractive to non-profit organizations and businesses who have reservations about leaving more than $100,000 in an FDIC insured account. Your Active Investment Account can exceed $100,000 and you will be secure in the knowledge that it is backed 100% by pledged Agency Securities or State or Insured Municipal Bonds and the capital account of Penn Security Bank & Trust Company.

Variable Interest
The interest rate on your Active Investment Account will be determined by the Bank and will vary from time to time based on money market conditions. Interest is compounded monthly and will be credited to your account monthly.

Monthly Statement
Yes, you will get a monthly statement on your Active Investment Account reflecting all of your activity for the month, including the payment of interest.

Account Accessible through Home/Office Banking
You will be able to obtain your current balance and review activity in this account just as you would with any other Penn Security account.

Contact Us
Just contact us at any convenient branch, or send us an e-mail. Our friendly, professional staff will be happy to assist you in opening your Active Investment Account.

ACH Services
We transmit entries, either debit or credit, to the Automated Clearing House for you.  You transmit either an ACH formatted file to us or a flat file containing the program information, which we can translate into ACH format for you.  Reduce your cost of processing checks by using this service.