You can use the auto-sweep facility to get FD like interest on your savings account. In this facility you get more interest than in savings account. With this facility you can also create an emergency fund. Many banks of the country provide this facility to their customers. However, the rules for this are different for every bank. Let us know in detail in this article.
Everyone wants his income to be maximum. For this he also invests as much as possible. Many people invest in Fixed Deposit for safe investment. If we talk about Saving Account, it does not give more interest than investment scheme.
If you want to get more interest on your savings account, you can use the auto-sweep facility. Today we will tell you about the auto-sweep facility of the bank. In this facility you get FD like interest on savings account. To start this facility, you have to go to the bank and give a request.
What is Auto-Sweep Facility? (What is Auto-sweep Facility?)
In the sweep facility, the bank transfers more than a specified amount to the customer’s savings account as a sweep-in deposit. Understand it this way, if you have set a limit of Rs 10,000 for auto-sweep, then as soon as more than Rs 10,000 comes into your account, it will be transferred to the automatic sweep-in deposit.
The tenure of sweep-in deposits is different in every bank. In many banks the tenure of this deposit is 5 years while in many banks this period is only 1 year. The interest rate on this facility is different for all banks and even the name of this facility is different.
What is the name of this facility in the bank?
- The name of auto sweep facility in State Bank of India (SBI) is State Bank of India Savings Plus Account. In this, money will be transferred to sweep-in deposit in multiples of Rs 100 from the limit.
- The name of this facility in HDFC Bank is Sweep-in Fixed Deposit.
- The name of this facility in ICICI Bank is Flexi Deposit.
Who are eligible for auto-sweep facility
Not all bank customers get the benefit of auto-sweep facility. Every bank has different criteria for this facility. Apart from this, to avail this facility, the customer has to open an FD of at least Rs 25,000.
Benefit of auto-sweep facility? (Benefit of Auto-sweep Facility)
- In this, you get more interest than in a savings account.
- Apart from this, it also helps in creating a separate fund which can be useful to you in case of emergency.
- You do not have to pay any separate penalty or fee for withdrawing money from this fund. Even if there is less money in the account, interest is given on the remaining amount as per the auto-sweep rate.
Keep these things in mind
- Before using this facility, you should read the terms and conditions of the bank carefully.
All banks offer different interest rates on this facility, so you must compare the interest rates of the banks. - This facility proves to be very helpful for those people who like to maintain minimum balance in their savings account. You can use the amount in the auto-sweep deposit at any time.
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