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How to Enable Auto Sweep Facilities in a Current Account
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Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.
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Money moves fast in business—or sometimes, not at all. One day, you’re clearing payments back-to-back. The next, there’s a chunk of idle cash just sitting in your Current Account, waiting for its turn. That’s where auto sweep feature comes in.
It doesn’t ask for attention. It doesn’t change how you operate. But it quietly reshapes what happens to the money that would otherwise lie unused. For businesses that don’t like micromanaging funds but still care about where every rupee rests, it introduces a subtle shift in how liquidity and earnings coexist.
Setting it up isn’t complex, but it’s often skipped simply because most don’t know where to start. That’s what we’re unpacking here—no jargon, no guesswork. Just the ‘how’ behind making this feature work for you.
About Kotak ActivMoney
Kotak ActivMoney adds a smart layer to your Current Account by automatically transferring surplus funds—above a defined threshold—into a Fixed Deposit at the end of each day. This daily sweep helps optimise idle balances without disrupting day-to-day transactions.
The feature works silently in the background. If your account balance falls below the set threshold, funds are automatically swept back in to maintain liquidity.
There are no enrolment charges and the sweep-in/sweep-out limits are fixed as per account rules. Unlike fixed-frequency sweep setups, this one operates daily—giving your excess funds more opportunities to be put to use.
It’s important to note that interest is earned only if the funds remain in the FD for a minimum of 7 days. So, while the sweep happens daily, returns are generated when funds stay parked long enough.
For businesses managing fluctuating cash flow, it offers a structured way to make better use of parked funds without shifting to a separate account or product.
How to activate ActivMoney for your Current Account?
If you want your Current Account to do more with idle funds, ActivMoney can be activated with just a few simple steps—no complicated paperwork or long waiting periods. Here’s how you can get started:
Choose the route that works best for your business style. Once activated, the feature runs seamlessly in the background, keeping your money flexible and more efficiently placed.
Which businesses should enable auto sweep facility?
Not every business keeps a constant eye on its Bank balance, but most would agree—it matters where idle funds rest. The auto sweep facility brings a quiet efficiency to cash management by ensuring that excess money doesn’t just sit idle.
While it works for a wide range of operations, it’s especially useful for certain business types that often deal with fluctuating balances or parked funds. Here are some of the kinds of businesses that can benefit from enabling the auto sweep facility:
1. Seasonal businesses
Businesses that earn heavily during specific months—like travel agencies, apparel exporters or wedding planners—often hold large sums during off-peak periods. Auto sweep helps utilise these parked funds more productively without locking them in.
2. Startups and early-stage ventures
Many startups raise funding in tranches and don’t deploy it all at once. Auto sweep ensures that the funds not currently in use are still earning returns, while keeping them instantly accessible when needed for scale-up or burn.
3. Service-based businesses with monthly payouts
Agencies, consultancies or IT firms that receive bulk payments but pay salaries and vendors monthly can use this feature to make better use of interim idle balances.
4. Businesses with high-value current accounts
Enterprises that maintain a consistently high balance in their Current Account—either by design or due to client deposits—can benefit by earning interest on the surplus without manual transfers.
5. Professional firms (lawyers, CAs, architects)
These firms often receive retainers or advance fees, which may remain unused for weeks. Auto sweep makes sure those funds aren’t just sitting still.
Final word
If your business holds money for more than a few days at a stretch, this feature is worth considering. When you open a Current Account, it’s not just about managing payments—it's also about making the most of the funds that stay. Look for options that come with value-added features like auto sweep, which bring quiet gains without changing how you operate. Apply a Current Account with Kotak Mahindra Bank and explore smart tools like ActivMoney that help your money move smarter—even when it’s standing still.
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