Savings Accounts: Bank account holders will get the same interest as FD on savings accounts...
Often people keep their deposits in the savings account of the bank. Interest is received every quarter as per the amount.
But do you know that the bank also provides such a facility, through which you can earn more interest? Very few people know about this facility. This service is called Auto Sweep Facility. Let us know about it.
What is this service and how does it work?
Banks provide this facility to customers with current or savings accounts. You have to go to the bank to enable it. Through this, one gets more interest on the surplus amount of the savings account.
Through this automated feature, your current or savings account gets linked to the FD. If there is surplus amount in the savings account, it will go to the FD account.
For this, you will have to go to the bank and set a limit. While enabling this service, it will have to be mentioned after how much amount in the account the remaining amount should be transferred to the FD account.
Whenever there is more money in the bank account than the limit, that surplus amount will go to the FD account, on which you will get interest. If the amount in the savings account falls below the limit, then the same amount from the FD account will be transferred to the bank account. This is called reverse sweep. In this facility, the fund limit set by you in the bank account is maintained and the surplus amount continues to give interest from the FD.
What other benefits will you get?
The advantage of this facility is that you have to give permission once. After this, the bank account automatically takes care of the rest.
In normal FD accounts, if you want to deposit a surplus amount, you have to raise the request every time. You don't need to deposit funds every time. Therefore, you will get benefits through this facility.
Follow our Whatsapp Channel for latest update