Auto Sweep Service: Many people like us open our accounts in the bank, but remain unaware of all the facilities provided by the bank to the customers. If we have correct information about them, we can remain profitable. One such facility is Auto Sweep Service.
People keep depositing money in their savings or current accounts, on which they get 2.5-3 percent interest. However, if you use a little wisdom, you will get three times more interest on it. Generally, banks give 7-8 percent interest on fixed deposits (FD), but you can also earn the same interest on the money kept in your savings or current account. For this you will have to do a little work.
What is Auto Sweep Service?
Auto Sweep is a feature through which you can link your bank account with fixed deposit. As soon as this service is enabled in the account, you will get increased interest on the surplus funds. There is a limit to this. As soon as the amount deposited in the savings or current account crosses the sweep limit, auto sweep gets activated, after which interest is higher than the interest applicable on surplus funds, which is equal to FD.
Understand it this way – Suppose you have fixed the auto sweep limit in the bank at Rs 50,000, while the account has Rs 80,000. In such a situation, the amount which is more than the fixed limit i.e. Rs 30,000 will automatically be deposited in the fixed deposit, on which you will get more interest than a normal savings account. If the balance in your account decreases or if needed, you can get the money from FD ‘swept in’ back to your account. In a way, liquidity is maintained and huge interest is also available on the deposited amount.
Benefits of Auto Sweep
That is, if you do not know how and where to invest due to this service, then this is a great way of investment for you. Apart from this, you do not need to go to the bank separately to get FD because this work is completed automatically through auto sweep. Generally, you cannot break the FD until the maturity period is completed, but in this you can withdraw the money by breaking your fixed deposit anytime. You can get this work done both offline and online.
How to start the service?
To start the service offline, you just have to go to the bank and ask to enable the auto sweep service. Apart from this, you can also start it with the help of bank’s website or mobile banking. For this you will have to log in to your bank account and go to the fixed deposit option. Then along with clicking on ‘More’ you will get the option of ‘Auto Sweep Facility’. After this you will have to decide the limit and click on ‘Submit’ button.
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