{"id":4525,"date":"2023-07-18T06:03:28","date_gmt":"2023-07-18T06:03:28","guid":{"rendered":"https:\/\/www.fisdom.com\/glossary\/sweep-account\/"},"modified":"2023-07-18T06:03:28","modified_gmt":"2023-07-18T06:03:28","slug":"sweep-account","status":"publish","type":"post","link":"https:\/\/www.fisdom.com\/glossary\/sweep-account\/","title":{"rendered":"Sweep Account"},"content":{"rendered":"<p>A Sweep Account is a banking product that combines the features of a savings account and a fixed deposit account. It offers account holders the benefit of earning higher interest rates on their excess funds while maintaining liquidity for their day-to-day transactions.<\/p>\n<h2>How does the sweep account function?<\/h2>\n<p>In a Sweep Account, the account holder sets a minimum threshold or &#8220;trigger level&#8221; for the funds they want to keep in their savings account. Any amount above this threshold is automatically transferred to a linked fixed deposit account, where it earns a higher interest rate than a regular savings account. The process of transferring the excess funds from the savings account to the fixed deposit account is known as &#8220;sweeping.&#8221; The funds are typically swept on a daily basis or at predetermined intervals, depending on the bank&#8217;s policies and the customer&#8217;s preferences.<\/p>\n<h2>What are the advantages of Sweep accounts?<\/h2>\n<p>Sweep accounts enable account holders to earn higher interest rates on their surplus funds, maximizing their earnings potential.<br \/>\nWith sweep accounts, individuals can easily access their funds whenever needed, ensuring liquidity and convenience.<br \/>\nThe automated process of fund sweeping in sweep accounts eliminates the hassle of manual transfers and provides efficient management of funds.<br \/>\nSweep accounts help account holders optimize the use of their funds by earning better returns on idle money that would otherwise sit in a low-interest savings account.<br \/>\nAccount holders have the flexibility to customize their sweep accounts by setting their own minimum balance threshold, and aligning the account with their specific financial requirements.<\/p>\n<h2><\/h2>\n","protected":false},"excerpt":{"rendered":"<p>A Sweep Account is a banking product that combines the features of a savings account and a fixed deposit account. It offers account holders the benefit of earning higher interest rates on their excess funds while maintaining liquidity for their day-to-day transactions. How does the sweep account function? In a Sweep Account, the account holder [&hellip;]<\/p>\n","protected":false},"author":30,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[20],"tags":[],"class_list":["post-4525","post","type-post","status-publish","format-standard","hentry","category-bank-deposits"],"_links":{"self":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/4525","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/users\/30"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/comments?post=4525"}],"version-history":[{"count":0,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/4525\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/media?parent=4525"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/categories?post=4525"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/tags?post=4525"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}