Automatic transfer of funds - How To Discuss

Automatic transfer of funds,

Definition of Automatic transfer of funds:

1. An automatic transfer of funds is a standing banking arrangement whereby transfers between a customer's two (or more) accounts are made on a regular, periodic basis under specified conditions. Automatic transfers are ■■■■■■■■ without further instruction or action by the customer; a common way that automatic transfers are ■■■■■■■■ is through "sweep" instructions, whereby all excess funds in one account are swept into another account. The automatic transfer of funds is one core offering of both commercial and online banks.

2. Automatic transfers are often used for the regular movement of funds from a checking account to a savings account. Automatic transfers may be used to transfer money between the accounts of two spouses, or between a parent and a child. Setting up automatic transfers to pay bills is a useful budgeting tool because they can be used for periodic equal payments, such as for mortgages or other loan payments.

3. Banking arrangement that allows transfer of funds between a customers two (or more) accounts, under specified conditions. It is generally used to transfer funds from an interest bearing account to a non-interest bearing account to cover overdrawn sums.

How to use Automatic transfer of funds in a sentence?

1. An automatic transfer of funds is a standing banking arrangement whereby transfers from a customer's account are made on a regular, periodic basis.
2. Almost all brick-and-mortar banks and online banks offer automatic transfer services to their customers.
3. Automatic transfers can be used to move money from one bank account to another one, like from a checking account to a savings account.