![]() ![]() It provides an automatic way to ensure that your money is earning as much interest as possible, without manual monitoring.įor example, imagine that you set up a sweep account with a minimum amount of £3,000. If a customer opens a sweep account with a brokerage firm, any excess funds are transferred into the account that earns higher interest at the end of each day. There are several ways to take advantage of sweeping, starting with investing. Instead, the customer agrees on a set payment parameter and the transfers are automatically initiated. ![]() The CMA’s ruling in favour of open banking means that VRPs can now be used to allow automatic transfer of funds between accounts without the customer needing to authorise every single transaction. With the sweeping payments, customers facilitate this automatic recurring transfer between their own accounts. Also called me-to-me, these types of payments are similar to Direct Debit payments, which allow businesses to automatically collect payments on a recurring basis. Sweeping is the movement of money when it is automatically transferred between two of a customer’s own accounts. But what exactly does this all mean to the average account holder? Here’s a breakdown of the sweeping payments meaning, and what a bank account sweep facility can be used for. This means that the UK’s nine biggest banks can now use VRPs as their mechanism for sweeping payments. In July 2021, the UK Competition and Markets Authority (CMA) ruled in favour of the Open Banking Implementation Entity (OBIE) to authorise Variable Recurring Payments (VRPs). ![]()
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