Baroda Smart Sweep is a Savings Bank product with an auto sweep facility to short-term deposits. The product has 2 components - a savings bank component and a fixed deposit component.
The product is being offered to individuals including minors, salaried people, businessmen, self-employed, professionals, traders and high net worth individuals (HNIs). Beneficially for customers, there isn't any minimum or maximum balance requirement. Deposits above £200 and in multiples of £100 automatically gets swept from savings account to the linked fixed deposit account , earning higher returns. In case of Current Accounts, deposits above £5000 and in multiple of £1000 gets transferred from Current Account to linked fixed deposit account earning higher returns. The period of fixed deposit in either case being six months.
If and when the customer needs funds more than his savings / current account balance, a reverse sweep order will immediately be auto-triggered to meet the customers liquidity needs. To benefit customers with maximum returns, while reverse-sweep, LIFO system (Last in first out) is followed. Thus the product offers customers dual benefit of 'liquidity' through the savings / current component and 'hi-return' through the linked fixed deposit component.