Does your bank have an autosweep facility?

[neku]

In some banks, if the balance in the account exceeds a particular amount, it is auto swept to make a fixed deposit. It can be irritating for the customers, if they issue a cheque and find that the balance has been transferred to an FD. Does any member have the auto sweep facility in their bank?

 

[gwolf666]

Personally, I've had similar experiences with banks that offer the auto sweep option. While I understand this feature can be useful for maximizing interest and better managing funds, it can also be frustrating for customers when, without realizing it, their balances are automatically transferred to fixed-term deposits. This can cause problems if you need access to that money quickly, for example, to cash a check or handle an emergency. The key here is communication and transparency from the bank. I think it would be beneficial for banks to clearly inform customers about when and how auto sweep is activated, and to offer the option to deactivate this feature if the customer prefers to maintain full control over their funds. Ultimately, convenience shouldn't come at the expense of flexibility and customer control over their money.

 

[Stardom22]

For me this is the first time l am hearing about the same. Maybe it's something that already exists but l am yet to experience it.

 

[Augusta]

Huh, never heard of a thing like this. But no I haven't experienced it. I just hope that it doesn't happen here it's not welcomed at all.

 

[kit_hung]

Haha, that auto sweep is very tricky. When the bank sees that the balance has exceeded the limit, it sends it directly to the fixed deposit and you are surprised that the check has bounced. It's like someone ate your ugali without asking. Others like it because the interest rate is high, but for customers who want to spend money quickly, it becomes stressful. I haven't used that facility, but I know people get scammed from time to time.

 

[Stardom22]

l think that is a feature on certain bank accounts and the users should be well sensitized for the same so that they are not taken into surprises when that happens for sure.

 

[neku]

Due to this feature, some investors avoid keeping a large amount in banks with autosweep, there is less flexibility for making transactions if the balance is converted to fd.