What is debit sweep in bank transaction?

The “sweep-in” facility allows your bank to transfer any sum in excess of the amount stipulated by you from your savings account to a sweep-in deposit. Any excess amount in the savings account is automatically transferred to a sweep-in deposit in multiples of ₹1,000.

How does a sweep account work?

A sweep account links a commercial checking account with an investment account, such as a money market account or stock fund. The bank then “sweeps” the account (usually daily) and removes any funds in excess of the balance minimum. The bank automatically invests those funds into an account you select.

What is debit sweep in SBI statement?

In the SBI savings plus account, any excess amount in the savings bank is automatically transferred to the fixed deposit (FD) in the multiples of ₹ 1,000. In common parlance, it is also known as sweep-in facility or flexi fixed deposit (FD).

Why did my money go to a sweep account?

A sweep account is a type of bank or brokerage account that is linked to an investment account, and automatically transfers funds when the balance is above or below a preset minimum. Typically, this is used to sweep excess cash into a money market fund, where it will earn more interest than an ordinary bank account.

How can I check my SBI sweep account balance?

With SBI Quick app, customers can get account balance, mini statement instantly by just giving a missed call or sending an SMS from their registered mobile number on the SBI balance enquiry toll free number – 9223766666. In a few seconds, they will receive balance details on their phone.

How does SBI sweep account work?

Whenever you withdraw money from your MODS linked bank account, your savings account will be debited first. However, if you don’t have sufficient balance in your savings account, a reverse sweep will happen and your MOD deposit will be liquidated in multiples of INR 1k till it meets the exact fund requirement.

How do banks make money on sweep accounts?

A sweep account is a bank or brokerage account that automatically transfers amounts that exceed, or fall short of, a certain level into a higher interest-earning investment option at the close of each business day. Commonly, the excess cash is swept into a money market fund.