Should You Opt for an Auto-sweep Facility in Current Account?


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A Current Account is an invaluable tool for all types of businesses. From seamless transaction capabilities to overdraft facilities, Current Accounts serve as the financial backbone of businesses, ensuring smooth operations and efficient money management. 

While the advantages of Current Accounts are numerous, they usually don’t yield interest. Unlike savings accounts or investments, where your money can grow over time, funds in a Current Account stay idle. This can lead to missed opportunities for potential growth and even depreciation in value due to inflation. This is where the auto-sweep facility in Current Accounts helps.

Offered by various ActivMoney Current Accounts, the auto sweep facility helps you earn interest on idle funds. Balances above a set amount are automatically transferred to a Fixed Deposit (FD), allowing your idle funds to earn FD-like interest. Here are five more reasons why opting for an auto-sweep facility in Current Accounts may be beneficial to your financial management strategy.

1. Mitigate the impact of inflation

Inflation erodes the purchasing power of money over time. Your money value decreases as prices rise and reduce the real worth of your savings over time. In this context, idle funds are particularly vulnerable. 

The auto sweep facility in Current Accounts actively puts your funds to work, protecting you against the devaluation of your money and maintaining its purchasing power over the long term.

2. Efficient utilisation of funds

The auto-sweep facility offers an efficient way to make the most of your Current Account balance. Instead of allowing excess money to sit idle in your account, this feature automatically transfers surplus amounts beyond a specified threshold into an FD. Thus, your funds always work for you, generating interest even when you are not actively monitoring your transactions.  

3. Higher interest earnings

The funds swept into the FD enjoy competitive interest rates, allowing your money to grow faster. Over time, the accumulated interest can significantly contribute to your overall financial growth, making the auto-sweep facility a valuable banking feature for individuals aiming to enhance their wealth.

4. All-time liquidity and accessibility

One common concern with FDs is the lack of liquidity due to the predetermined lock-in period. However, with the auto-sweep facility, funds allocated to the FD are always accessible without any penalty for premature withdrawal. Thus, you enjoy the stability, security, and high returns that FDs offer without losing the flexibility to access your cash in emergencies. 

So, don’t settle for an FD that may not align with your Current Account requirements. Take advantage of the auto-sweep facility and enjoy the benefits of all-time liquidity and accessibility. 

5. Seamless transactions

Open a Current Account with the auto sweep facility to simplify day-to-day financial operations. The combined balance of your Current Account and the amount in your FD will remain available for transactions. Thus, you have uninterrupted access to your funds for all financial activities without having to time the transfers or deal with transaction requests. 

Maximise your Current Account value through the auto-sweep facility 

Benefits like efficient fund utilisation, FD-like interest earnings, liquidity without penalties, and seamless transactions make the auto-sweep facility a useful option for Current Account holders. To take advantage of this option, reach out to your bank and enquire about the auto-sweep feature or whether they offer exclusive ActivMoney Current Accounts to maximise the returns on your idle funds.

It’s equally important to thoroughly review the Current Account documents, eligibility requirements, features, and terms and conditions, all available on the bank’s official website. This will help you complete the account opening process without any delays and grow your savings through FD-like interests.

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