Auto sweep facility is a useful facility that the bank gives to the customers on savings or current accounts, through this you can earn more interest on the surplus funds of your savings account. Can help you get more interest on your savings account.

Banks provide special facilities to customers on the surplus funds of savings or current accounts, to take advantage of this you have to enable this service. If you want to earn interest on the excess amount deposited in your savings account, you can avail of the auto sweep facility.

What is the Auto Sweep facility and how is it beneficial for bank account holders?

Auto Sweep Facility: Auto sweep facility is a process that automatically transfers the amount deposited in your savings account to a fixed deposit if it exceeds a specified limit. This is a beneficial banking facility that helps you earn higher interest than the lower interest you get on your savings account.

In banking, surplus amount is often used to denote excess deposits in savings accounts or fixed deposit accounts. Whenever a person or organization has enough money to meet his expenses, he can save or invest the amount separately.

Let us know how the auto sweep feature works:

Set limits:

You can set a sweep limit for limits on your savings or current account. For example, you can set this limit at Rs 50,000.

The amount is deposited:

Whenever money is deposited into your savings or current account, whether from salary, gift or any other source, it gets added to the total balance.

Sweep is triggered:

When the amount deposited in your savings or current account exceeds the sweep limit, the auto sweep facility is activated.

The amount is transferred:

The separate amount is automatically transferred to your fixed deposit account. You can earn higher interest on this amount for the period for which you choose a fixed deposit.

Benefits of Auto Sweep Facility for Bank Account Holders:

Earn more interest:

The amount separately deposited in your savings account earns more interest in your fixed deposit, allowing you to get better returns on your investments.

Promotes savings

The auto sweep feature encourages you to save regularly, knowing that the amount set aside is being safely invested in your fixed deposit.

Financial discipline:

This feature helps you track your expenses and follow the budget.

Easy management:

Auto sweep is an automatic process, so you do not need to manually transfer the amount to the fixed deposit.

Easy process for Internet banking

  • First of all, you have to sign in to the Internet banking app of your bank and go to the fixed deposit option from the menu.
  • Now clicking on the “More” option from the drop-down menu will give the option of Auto Sweep facility, click on its link here.
  • After this, select the account in which you want this feature and fix your amount. Here you will also get the option to choose the time frame of the deposit.
  • Finally, click on the OK option and submit.
  • You will have to enter OTP or transaction PIN/password here.
  • Your bank will enable this service in the next few working days.

There may be various terms and conditions for auto sweep facilities in different banks. Therefore, you can contact your bank.

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