Autosweep facility in bank account inconvenient for some investors
Some of the banks have an autosweep facility for customers and the balance in their account above a certain limit is automatically converted into an fd.
This is very inconvenient for the customer, since the cheque they issue may be presented a day later, and the balance is already converted into an FD.
Even if the customers has placed orders for investing in stocks,equity, these orders are ignored and the amount is automatically converted into fixed deposit
Due to the autosweep facility, the customer cannot keep a large amount in the bank account for a short period of time.
So the customer is forced to use other bank accounts which do not have autosweep facility