Everyone has a savings account in the bank. Through this we do all the transaction work. You also get interest from time to time on your money in the savings account, but this interest is not very high.
It is around 2.5% to 4%. Different banks offer different interest on savings accounts. But do you know that you can also avail the benefit of interest on fixed deposits on your savings account?
Banks provide a facility to customers on savings or current accounts, which is called Auto Sweep Facility. If you have a good amount of money in your savings account then you can avail this facility. In this you will get double benefits. Firstly, you will continue to use the account as a savings account and can transfer money from it whenever you want, and secondly, you will also get FD interest on the account. But to take advantage of it, you have to enable this service. Know what is auto sweep facility.
Know whether auto-sweep facility
By adding auto-sweep facility to a savings account, an automated feature is added to your account. In this, a limit is fixed in the savings account. If the amount exceeds that limit, it is automatically converted into 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 savings account and FD on your same account.
Benefits of auto-sweep facility
Generally, the interest received on savings account is much less as compared to FD, but you can also get 5 to 7% interest on FD. In such a situation, by adding auto sweep facility, you can get good returns through FD on savings account.
When you get an FD, interest has to be deposited in it for a certain period. If you break the FD midway, you have to pay a penalty. But because this FD is added to the savings account, you are not under any such bondage. You can withdraw money from your account anytime.
How will this service start?
Banks provide different mediums to provide this service to their customers. Here we are telling the methods 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 option of “e-fixed deposit” 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.
