highlights
You have to start the auto sweep function once.
After that it works automatically.
This keeps your money from getting stuck in FD.
New Delhi. It is a common practice that the interest rate on savings accounts is very low. People soon no longer have a problem with this because they believe that they don’t increase their money by saving, they only have to save it. But you don’t have to be satisfied with that much anymore. With the help of the Auto Sweep feature, you can now turn your savings account balance into a good source of returns.
Some people may know what Auto Sweep is and how it works, but there are many who have little or no knowledge of it. If you want to learn more about this facility, then read on. So let us know what an auto sweep function is.
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automatic sweeping device
Only a limited amount of your money goes to the savings account. Once the amount exceeds this limit, the excess amount is converted into FD, which helps the account holder earn good returns. You don’t have to make an effort for this, it happens automatically. For this reason it is also called auto sweep function.
understand with examples
Suppose you opened a savings account with an auto-sweep feature. Now here you need to set a limit from which amount your money can be converted into FD. Suppose you set a limit of 10,000 rupees and deposit 40,000 rupees into the account. This means that 30,000 rupees is an additional amount that will be converted into FD. You will receive FD interest on this amount and interest on 10,000 savings account.
not that the money is stuck
If you doubt that the money converted to FD will stick, then you think wrong. In fact, you can withdraw the amount in FD at any time via auto-sweep. Whenever you need money, that amount will be credited to the savings account and you can easily withdraw that money. It should be noted that the return on FD by Auto Sweep varies from account to account.
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Tags: bank account, earn money, fixed deposits, investment tips, savings accounts
FIRST RELEASED : July 25, 2023 at 9:01 am IST
