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You need to enable the auto sweep facility once.
After that it works automatically.
In this your money will not get stuck in FD.
New Delhi. It is a common practice that interest rates on savings accounts are very low. People soon have no problem with this because they believe that they don’t have to grow money by saving, they just have to save it. But now there is no need to be satisfied with only this much. You can now source good returns on your savings account with the Auto Sweep facility.
Few people may be aware of what Auto Sweep is and how it works, but there will be many who have little or no knowledge about it. If you want to know about this benefit, then continue reading further. So let’s know what are the benefits of auto sweep.
Also Read- Good News For PF Account Holders! The government has increased the interest, now it will give 8.15 percent return, 6 crore people will benefit
Auto sweep facility
In this, your money goes only in the savings account but up to a limited amount. As soon as the amount crosses that limit, the excess amount is converted into FD, which helps the account holder earn better returns. You don’t have to make any effort for this, it happens automatically. That is why it is called auto sweep facility.
Understand by example
Suppose you open a savings account with auto sweep facility. Now you have to set a limit on how much your money can be converted into FD. Suppose you set a limit of Rs 10,000 and keep Rs 40,000 in the account. This means an additional amount of Rs 30,000 will be converted into FD You will get FD interest on this amount and savings account interest on 10,000.
Not that the money will be stuck
If you doubt that money converted into FDs will stick, then you are wrong. Actually, you can withdraw money in FD anytime through auto sweep. When you need money, this amount will come to the savings account and you can easily withdraw this money. It is worth noting that returns on FDs through auto sweeps vary from account to account.
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Tags: bank account, earn money, fixed deposit, Investment Tips, Savings Account
First Published: July 25, 2023, 09:01 IST
