I have seen tons of banks offer this MMA sweep account feature for the business customers. Doesn't Reg D restrict the sweeping back into the checking account? How does the bank get aroun that rule?

Yes, the sweeps back to the DDA account are limited under the "six per month" rule in section 204.2(d)(2). The sweep arrangement may include a provision stating that funds are swept FROM the MMDA only once a week. Or that no more than 6 sweeps from the MMDA will be completed in a given month.

Or, the MMA account is really classified as an interest bearing checking account by the institution.......

SO it would be OK to name it a MMA if it was reserved for as a checking account? (That was my original thought, but reading D made me think not.)

And thank you both.

That can call the product a SDSA (super duper savings account) if they wanted to. An account name is only an account name.

Great, thanks!

The sweep mechanism was contrived to get around the customer's ineligibility for a NOW account. Now that bank's can offer interest bearing DDA's to anyone, it no longer serves a purpose. If you want to pay interest to corporate customers you may design a product for that purpose...