Why I’m Moving Away from Auto-Sweep Accounts: A Reality Check on Banking’s “Smart” Solution
When banks introduced auto-sweep facilities, they seemed like the perfect solution for managing idle cash. The concept appeared brilliant: automatically transfer surplus funds from your savings account to a fixed deposit when your balance exceeds a threshold, earning higher returns while maintaining liquidity. After using this facility extensively, I’ve discovered several critical flaws that make it less attractive than initially promised. The Auto-Sweep Promise vs. Reality Auto-sweep accounts were marketed as offering “the best of both worlds” – the liquidity …
