You can get FD interest on an ordinary savings account, you just have to go to the bank and do this one thing.
If you add an auto sweep facility to your savings account, you will start getting FD interest on the amount. But to avail of its benefits you have to enable this service. Know about it here-
Auto Sweep Facility: We all open our savings account in the bank because whether it is for salary doing any kind of cash transactions or availing the benefits of government schemes, the work cannot be done without the savings account of the bank. Most people have some savings in their savings account, which they keep with the thought that sudden expenses can be met with these savings.
Banks also provide interest on your money from time to time, but this interest is not very high. It is around 2.5% to 4%. Different banks offer different interest on savings accounts. But if you add a facility to your savings account, then you will start getting FD interest on the amount. But to take advantage of it, you have to enable this service in it. Know about it here-
Know what is this facility?
We are talking about an auto-sweep facility. If you get it added to your savings account, then an automated feature is added to your savings account. In this, a limit is fixed in the savings account. Whatever amount exceeds that limit, is automatically converted into a fixed deposit i.e. FD and you get FD interest on that amount. If the balance in the account is less than that limit, the FD money is automatically returned to the savings account. In this way, you continue to get the benefits of both a savings account and FD on your same account.
Benefits of auto-sweep facility
Generally, the interest received on a savings account is much less as compared to an FD, but you can also get 5 to 7% interest on FD. In such a situation, by adding an auto sweep facility, you can get good returns through FD on a savings account. Apart from this, when you get an FD, it has a maturity period. If you break the FD midway, you have to pay a penalty. But when auto sweep facility is added to the savings account, you are not bound by any such lock-in period. You can withdraw money from your account whenever you want.
How will this service start?
Banks provide different means to provide this service to their customers. Here we are telling how to start 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 Fixed Deposit option from the menu.
- Clicking on '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 choose the time frame of the deposit.
- After this click on OK and submit it. You will have to enter OTP or transaction PIN/password here. 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.
- Here select 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.
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