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A sweep account combines two or more accounts at a bank or a financial institution, moving funds between them in a predetermined manner. [1] Sweep accounts are useful in managing a steady cash flow between a cash account used to make scheduled payments, and an investment account where the cash is able to accrue a higher return.
The business owner is personally responsible for paying any debt acquired on the business credit card, and their credit will be impacted by the account activity, whether good or bad.
Sweep accounts Sweep accounts are typically offered by the cash management division of a bank. Under this system, excess funds from a company's bank accounts are automatically moved into a money market mutual fund overnight, and then moved back the next morning. This allows them to earn interest overnight.
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Hence, the Flexi Fixed deposit scheme has two components: a savings and current account component, and a fixed deposit account component. Reverse sweep (sweep-out): In case of insufficient funds in a savings account to honour any debit instruction (e.g., when the customer wants to withdraw money through cheque or through an ATM), the balance in ...
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