Most individuals maintain a savings account for their daily transactions, receiving modest interest rates ranging from 2.5% to 4%. However, did you know you can maximize your earnings by availing the benefits of fixed deposit (FD) interest on your savings account? This is made possible through the Auto Sweep Facility offered by banks.

Understanding Auto Sweep Facility: The Auto Sweep Facility is an automated feature added to your savings or current account. It involves setting a predetermined limit in your savings account, and if the balance exceeds this limit, the surplus amount is automatically converted into a fixed deposit (FD). Consequently, you earn FD interest on this amount. If the balance falls below the set limit, the FD funds are seamlessly transferred back to the savings account. This innovative feature allows you to enjoy the advantages of both a savings account and an FD within the same account.

Benefits of Auto Sweep Facility:

  1. Higher Interest Rates: While savings account interest is typically lower, FDs offer higher interest rates, often ranging from 5% to 7%. With the auto sweep facility, you can earn these enhanced returns on your savings account.

  2. Flexibility without Penalties: Unlike traditional FDs where premature withdrawal incurs penalties, the FDs created through the auto sweep facility are integrated into your savings account. This means you have the flexibility to withdraw funds without any penalties.

Activating Auto Sweep Facility (For SBI Customers): For State Bank of India (SBI) customers, activating the auto sweep facility can be done through internet banking or the YONO app. Here's how:

Via Internet Banking:

  1. Sign in to your internet banking account.
  2. Navigate to the Fixed Deposit option from the menu.
  3. Click on "More" from the drop-down menu to access the Auto Sweep Facility page.
  4. Select the desired account, specify the amount, and choose the deposit timeframe.
  5. Click OK, submit the request, and enter the OTP or transaction PIN/password.
  6. Your bank will enable the service in the next few working days.

Via YONO App:

  1. Open the YONO app on your mobile device.
  2. Access the "e-fixed deposit" option from the menu.
  3. Choose the Multi Option Deposit from the menu and select the account for enabling the feature.
  4. Submit the request and enter the OTP or transaction PIN/password.
  5. Once the bank completes the process, the auto sweep feature will be activated in your account.

By leveraging the auto sweep facility, you can optimize your savings account, earning higher interest through FDs while maintaining the flexibility to withdraw funds at your convenience."