Jan 21, 2018

Auto Sweep in Business/Current Accounts.

It clicks various queries in your mind when you hear about Auto sweep in Business Accounts.

You heard very rightly, let's see how it's possible.

First let's understand What is Auto Sweep?

Auto Sweep is a facility provided by Banks that links your Savings bank account with Fixed Deposit account. This facility ensures that the money kept in Savings account over and above threshold limit gets transferred to Fixed Deposit account for a specific period.

It's a two way facility which also ensures whenever you issue any payment from your Savings account, the money lying in Fixed Deposit will get automatically transferred to honour your payments. It works in a LIFO method, that means Fixed Deposit which is transferred/booked recently is going to get prematurely closed first and credited to your Savings account.

Now a days various Banks in India have come up with Auto Sweep facility in Business Accounts. Business Accounts covers Current Accounts such as Proprietorship, Partnership, Private Limited, LLP, etc.

The benefits of Auto Sweep facility :
1.Earning interest without having Savings account with Bank.
2. No need to sign multiple FD forms since it's an automatic transfer facility.
3. No worries on drawing cheques from your Business/Current account.
4. No charges on pre-closure of Fixed Deposits.

Shortcomings :

1. This facility is not offered to Customers who are enjoying any Credit line on Business Account.
2. Fixed Deposit will fetch interest on Pre-Closure only when it completes 7 days from the date of booking.

Hurray!!
The time has come when you can earn interest on your Business account and grow your money. So what are you waiting for, hurry up and find out today whether your Bank provides Auto Sweep facility or not. 

See, how money attracts money....

 

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