You have to start the auto sweep facility once.
After this it works automatically.
In this, your money does not get stuck in FD.
New Delhi. It is a common practice that the interest rate of savings account is very low. People do not have any problem with this soon because they believe that they do not have to increase money in savings, they only have to save it. But now there is no need to be satisfied with just this much. You can now convert your savings account money into a source of good returns with the help of the auto sweep facility.
Some people may be aware of what auto sweep is and how it works, but there will be many who have little or no knowledge about it. If you also want to know about this facility, then continue reading further. So let’s know what is auto sweep facility.
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auto sweep facility
In this, your money goes to the savings account only but up to a limited amount. As soon as the amount exceeds that limit, the excess amount is converted into FD, which helps the account holder to earn good returns. You don’t have to make any effort for this, it happens automatically. That’s why it is called auto sweep facility.
understand by example
Suppose you have opened a savings account with auto sweep facility. Now you have to set a limit in this, after how much amount your money can be converted into FD. Suppose you set a limit of Rs 10,000 and put Rs 40,000 in the account. That means Rs 30,000 is an additional amount which will be converted into FD. You will get FD interest on this amount and savings account interest on 10,000.
not that the money will be stuck
If you doubt that the money converted into FD will get stuck, then you are thinking wrong. Actually, you can withdraw the amount in FD through auto sweep anytime. When you need money, this amount will come in the savings account and you can easily withdraw this money. It is worth noting that the return on FD through auto sweep varies from account to account.
Tags: bank account, earn money, Fixed deposits, investment tips, Savings accounts
FIRST PUBLISHED : July 25, 2023, 09:01 IST