What is the Auto Sweep facility in Bank Account: Do you know that you can get the same interest rate as FD in your savings bank account? if not! Then this article is for you only. Do read it till the end.
To take advantage of saving money in the savings account in the bank, people usually resort to the bank’s scheme, Fixed Deposit. But we are going to tell you a way with the help of which you can get as much interest as the fixed deposit in the savings account of the bank. So let’s know about the auto sweep facility, and how to take advantage of it.
What is an Auto Sweep facility?
Auto Sweep is a facility that almost all banks provide to their customers. But by default, this service remains closed. If you want to take advantage of this facility, then you have to go to the bank and fill out a form separately. After that, the auto sweep facility is activated for your bank account. So you can get as much interest as the fixed deposit in the savings account of the bank.
The biggest advantage of the auto sweep facility is that once you have this facility turned on for your savings bank account, then you will get the amount of money deposited in your savings account over and above the threshold amount fixed by the bank. Interest is paid as much as FD.
For example– suppose your bank account is in SBI bank, in which you have deposited ₹ 200000, but the threshold amount of SBI bank is ₹ 5000. So in such a situation, if you get the auto sweep facility turned on in your bank account, then on the threshold amount i.e. ₹ 25000, you will get interested in the interest rate of the savings account.
But all the money you have in your account above ₹ 25,000, you will be given interest as much as FD. That is, to understand in easy language, out of 200000, you will get interest as much as a fixed deposit on 175000.
But banks also have a time limit for this. That is, if you want to take interest as much as FD, then for this you have to keep that money in your account till the time limit is fixed by the bank. If you withdraw your money before that time limit then you are paid interest as per the rules of your bank.
What is the benefit of sweep account?
- Higher FD rates
- Linking multiple deposits
- How to activate Auto Sweep Facility?
how to activate auto sweep facility online
If you want interest as much as FD in your savings bank account? And you want to enable the auto sweep facility in your account for this? So for this, you have to go to your bank branch. There you will have to tell that you want to enable the auto sweep facility in your account.
how to set auto sweep facility sbi
For this, the bank will give you a form, in which you will have to enter your account details. Then you will have to submit the same form back to the bank.
After submitting the form, the bank staff will enable the auto sweep facility for your account. After this, whenever there is more money in your bank account than the minimum threshold amount fixed by the bank, then you will be given the same interest as FD.
So now we hope that you must have understood very well what is the auto sweep facility in the bank. How can you get the auto sweep facility activated in your bank account? If you liked this information, then do share it with your friends also.
Benefits of Auto Sweep facility
It is very easy to take advantage of Debit Sweep or Auto Sweep facility. For this, you have to contact your bank. Deposit in the bank account and the amount above the minimum amount will have to be deposited in the FD.
Let us tell you that the interest rate on FD for a 1 year is up to 8 percent in some banks. Whereas interest is available at the rate of 4% in a common savings account. But through this, you can take advantage of double onion.
For example– if you have ₹ 200000 in your account and you keep it in the bank for 1 year, then the bank will give you an interest of 6000 on this amount at the rate of 3%, but if you have deposited above 20,000 on the amount. If you have taken care of Auto Sweep, then you will get 6% interest according to the interest of fixed deposit on your amount of one lakh 80 thousand.
Let’s say you have ₹ 1,00,000 in your account and set a limit of ₹ 25000. From this month onwards, ₹ 75000 in the account will be automatically deposited in the Fixed Deposit by the bank.
How to take advantage of the Auto Sweep facility
To take advantage of the service of Auto Debit Sweep, first, you have to go to your bank. After that, you have to get all the information about auto sweep from the bank. Now you have to set a limit in your account, above which the money will automatically get deposited in your fixed deposit as soon as the money increases.
After setting the limit, now you have to deposit some money in your account above the minimum limit so that your fixed deposit can start.
If you keep on using fixed deposits, you will know that some banks give an interest of 6% on fixed deposits for 1 year. Let us understand by example: Suppose you have made a fixed deposit of Rs 100000 in your account, then after one year at the rate of 6% you will get an interest of Rs 6000 on top of Rs 100000.
If there is more money lying in your account than the prescribed limit, then it will automatically get deposited in the fixed deposit. Suppose you have Rs 100000 in your account and the fixed limit of the account is Rs 30000, then Rs 70000 will be deducted from your account and deposited in the fixed deposit itself.
Things to keep in mind while using the Auto Sweep facility
If you activate the Auto Sweep facility on your account, then remember that in this the extra money above the limit from your account will automatically get deposited in the fixed deposit.
If there is money in your account above the limit, then it will be deducted automatically. In such a situation, you do not need to be afraid because after deducting that money from your account, it will also be deposited in your own fixed deposit.
So now we hope that you must have understood well what is the auto sweep facility in the bank. How can you get the auto sweep facility activated in your bank account? If you liked this information, then do share it with your friends also.
What is an Auto Sweep facility?
Auto Debit Sweep is a service that every bank provides. In this service, a limit is set on your savings account. And if more money is accumulated in your account than that limit, then they are deducted from your account and converted into a fixed deposit.
Can I withdraw money from the sweep account?
Yes, you can withdraw money from your Sweep account as you normally would with a checking or savings account.
What is the Auto Sweep facility in SBI?
Fixed Deposit Sweep-in is a facility provided by banks and non-banking finance companies to their customers. To avail of this facility, the depositors must have a savings account.
Can money be withdrawn from Auto Debit Sweep at any time?
Yes, you can withdraw money with Auto Debit Sweep whenever you want.
What is Auto Sweep?
With an auto-sweep account, your savings account is linked to a fixed deposit account and a monetary limit is set. Whenever the amount in the savings account crosses that stipulated limit, the excess money is automatically transferred to the fixed deposit.