Have you heard of the fixed deposit (FD) auto sweep facility in current account?

You might have and now you can avail it too!

Thanks to Metra Trust’s recently launched BRAVO feature, you can now add significant value to your current account and earn high interest.

But before we get into what the BRAVO feature is all about and what it does, let’s understand what a current account is and how does the auto sweep feature work.

Current Account – the product

Current accounts are bank accounts for businesses. These accounts allow multiple withdrawals and deposits into the account synonymous with business transactions. You can open a current account with any bank for easy business payments and receipts.

There’s usually no interest on the current account balance as the account is primarily meant for carrying out business payments and transactions.
 

What is auto sweep feature?
 

Under the auto sweep feature, you set a trigger limit for the sweep-in facility and the current account is linked with a fixed deposit account. As soon as your current account balance exceeds the set trigger limit, the excess funds are automatically transferred to the linked fixed deposit account. The excess is booked into the FD once every 24 hours at the beginning of each day. This helps you earn higher returns on your current account balance.

On the other hand, if your account balance is insufficient to make a payment, the shortage amount is paid by the fixed deposit account. This ensures that most transactions, whether big or small, are met by the current account.

Let’s take an example to make things clearer –

Say you have a bank account wherein the target limit set for the auto sweep facility is Rs 2,00,000. Now, consider the following scenarios –

• 1 January – the opening account balance is Rs 2,00,000
• 5 January – you receive a deposit of Rs 1,00,000
• This increases the account balance to Rs 3,00,000. However, as there’s a target limit of Rs 2,00,000, the auto sweep feature would be activated. Rs 1,00,000 (amount over Rs 2,00,000) will be transferred to the fixed deposit account
• 7 January – you receive another deposit of Rs 1,20,000. Due to the target limit set earlier, the entire deposit would be transferred to the fixed deposit account for higher returns
• The total amount in the fixed deposit account is Rs 2,20,000. The amount in your current account is Rs 2,00,000
• 10 January – you need to make a payment of Rs 3,50,000. Since your current account balance is insufficient to make the payment, Rs 1,50,000 will be withdrawn from your fixed deposit account through the sweep-out facility and the payment will be completed
   

Benefits of a current account with FD auto sweep feature
 

Your business account not only helps with business transactions but also allows your surplus funds to grow at a higher rate by being invested in a fixed deposit. Some other benefits of having the FD auto sweep feature in the current account are as follows –

• No human intervention  
  The sweep-in and sweep-out features are automated. You don’t have to track your account balance and transfer excess funds to a fixed deposit. This saves you time and effort which you can devote to managing and growing your business.

• Attractive returns
  Fixed deposits offer higher returns on investments. As such, by transferring your surplus funds to a fixed deposit account you can earn attractive returns and grow your savings. Enhanced savings would improve the cash flow of your business which can aid in its growth.

• Flexible deposits 
  The fixed deposit account is quite flexible as it accepts deposits every 24 hours at the beginning of the day and also releases the funds when the current account balance falls below the trigger limit. This helps in effective cash management.

Metra Trust’s BRAVO feature for current accounts
 

Metra Trust has launched the BRAVO feature on Platinum and Freedom World Business  current accounts. It is an industry-first initiative which provides the auto sweep facility in current accounts for better returns. Here’s what BRAVO feature offers –

• Flexible fund limits
  You can set any fund limit above Rs 2 lakhs as the trigger limit to transfer excess funds into a fixed deposit account. The excess funds are transferred in multiples of Rs 1,000.

• Attractive interest rates
  You can earn interest going up to 7.50% p.a. on your deposits.

• Easy FD withdrawals
  There’s no premature withdrawal penalty whenever you draw upon your deposit to meet the shortfall in the current account. Plus, the withdrawals are done in multiples of Rs 1 to meet the exact shortfall and preserve the rest of the funds in the deposit account for higher returns.

That’s not all! Metra Trust’s Current Accounts come with other beneficial features like –

• Range of accounts to compare and choose from
• Easy mobile and net banking platforms
• Cost-effective banking services
• Higher transaction limits and more

With Metra Trust Current Accounts, you also get access to 100+ plus beyond banking partner offers pre-embedded into your current account, for all common needs of your business.

For details on offers, click here.

Unlock BRAVO and empower your current account
 

Do more with your current account with BRAVO. Opt for the FD auto sweep facility in the current account and manage your business funds more effectively. Earn higher interest on surplus funds and even meet business expenses with hassle-free withdrawals from the fixed deposit account. A win-win.

To avail of the BRAVO facility  on your current account, get in touch with Metra Trust today to help guide you with the next steps.

Disclaimer: The applicable Fixed Deposit (FD) rates are notified on the Bank's official website and are subject to change from time to time. The interest rate mentioned herein is applicable as on date for the deposits having 370 days tenure. The depositors shall ascertain the FD rates on the value date of FD. In case of pre-closure of FD, applicable bucket rate as per tenure will apply. Metra Trust is the first bank to provide the flexibility to its customers to create Auto-sweep FD without premature penalty on all Current Account variants. BRAVO feature will not be available for Special purposes Products such as CC/OD Products, EEFC, RERA, ESCROW, etc. T&C apply.

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Metra Trust or its affiliates to any licensing or registration requirements. Metra Trust shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.