Whatever money we deposit in a savings account, interest is paid on it from time to time. But this interest is quite low. But through the auto sweep facility, we can get FD like interest on savings account.
Everyone has a bank account. Everyone will know that whatever money we deposit in the savings account, interest is given on it from time to time. But this interest is very low. Usually it is around 2.5% to 4%. But Auto Sweep Facility is a facility through which you can avail the benefit of FD interest on your savings account itself. To avail this facility, you have to enable this service in the account. Know about it here-
What is Auto Sweep Facility
If you add Auto-Sweep Facility to your savings account, then an automated feature is added to your savings account. In this, a limit is fixed in the savings account. Any amount above that limit is automatically converted into fixed deposit i.e. FD and you get FD interest on that amount. On the other hand, if the balance in the account is less than that limit, the FD money automatically returns to the savings account. In this way, you keep getting the benefits of both savings account and FD on your single account.
Benefits of Auto-Sweep Facility
Usually the interest on savings account is much less than that on FD, but you can get 5 to 7% interest on FD. In such a situation, by adding auto sweep facility, you can get good returns through FD on savings account. Apart from this, when you make an FD, it has a maturity period. If you break the FD in between, then you have to pay a penalty. But when auto sweep facility is added to the savings account, then you are not bound by any such lock-in period. You can withdraw money from your account whenever you want.
How will this service be started?
Banks provide different means to provide this service to their customers. Here we are telling the method to activate this facility for SBI customers. SBI customers can activate it through Internet Banking and YONO app. Know its process-
- Sign in to Internet Banking and go to the Fixed Deposit option from the menu.
- Clicking on the ‘More’ option from the drop down menu will open the Auto Sweep Facility page. Click on its link here.
- After this, select the account in which you want this feature and fix your amount. Here you will also have to select the time frame of deposit.
- After this, click on OK and submit it. You will have to enter OTP here or transaction PIN/password. Your bank will enable this service in the next few working days.
How to enable this feature on YONO app
- Go to the mobile app and open the e-fixed deposit option from the menu.
- Choose the option of Multi Option Deposit from the menu and select the account in which the feature is to be enabled.
- Submit. After this, you will be asked to enter OTP or transaction PIN/password. Once the process is completed by the bank, this feature will be enabled in your account.(zeebusiness)
