Almost everyone has a savings account in a bank. It’s the go-to for all our transaction needs. While savings accounts do earn interest over time, the rates aren’t typically high, hovering around 2.5% to 4%. Different banks offer varying interest rates on these accounts. But did you know you can reap the benefits similar to a fixed deposit on your savings account too?
🔄 Introducing the Auto Sweep Facility 🔄
Banks provide a special feature for both savings and current accounts, known as the Auto Sweep Facility. If your savings account usually has a substantial balance, you can benefit from this service.
It offers double benefits:
you can continue using the account for regular savings and transactions, and additionally, earn interest similar to that on a fixed deposit. However, you need to enable this service to take advantage of it. Let’s understand what Auto Sweep Facility is all about.
💡 Understanding Auto Sweep Facility 💡
By opting for the Auto Sweep Facility in your savings account, an automated feature gets linked to your account. A limit is set in the savings account. Any amount exceeding this limit automatically gets converted into a fixed deposit (FD), earning you FD-level interest.
Conversely, if the account balance falls below this limit, the FD amount automatically reverts to the savings account. This way, you enjoy the benefits of both a savings account and an FD in one.
📈 Benefits of Auto Sweep Facility 📈
Typically, the interest on savings accounts is lower than that on FDs. But with FDs, you can earn 5 to 7% interest. With the Auto Sweep Facility, you can enjoy higher returns through FDs on your savings account balance.
Unlike a traditional FD, where breaking the deposit early incurs a penalty, this facility offers the flexibility to withdraw funds anytime without such constraints.
🔧 How to Activate the Service? 🔧
Banks offer various mediums to provide this service to their customers. Here, we explain the method for SBI customers to activate this facility using Internet Banking and the YONO app.
🌐 Via Internet Banking:
- Sign in to Internet Banking and go to the Fixed Deposit option in the menu.
- Click on “More” in the dropdown menu to open the Auto Sweep Facility page.
- Select the account where you want the feature, set your amount, and choose the deposit timeframe.
- Click OK and submit. You’ll need to enter an OTP or transaction pin/password. The bank will enable this service within a few working days.
📱 Via YONO App:
- Open the mobile app and select “e-fixed deposit” from the menu.
- Choose the ‘multi option deposit’ and select the account for enabling the feature.
- Submit your request. You’ll be prompted for an OTP or transaction pin/password. Once the process is completed by the bank, the feature will be enabled in your account.
🌈 Stay Financially Savvy! 🌈
The Auto Sweep Facility is a smart way to optimize your savings and manage your finances effectively. So, take a step today and make your money work harder for you!
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