Business Definition for: automatic transfer of funds
automatic transfer of funds
arrangement that moves funds between checking or savings accounts under prearranged conditions, usually to take advantage of higher rates offered on investment accounts.
See also
Automatic Transfer Service (ATS)
,
sweep account
Related Terms:
prearranged transfer of funds from a savings account to checking, allowing the depositor to earn interest until funds are needed to cover checks written or to maintain a minimum balance.
bank or other depository account that provides for automatic overnight investment of all or a portion of idle balances.
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