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Take Benefit Of ‘Auto Sweep’ Facility On Your Saving Bank Account To Earn Little Extra

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Today’s market condition is taking people out from making investment under gold and stock market. People are trying to stay away from risky investments which is why un-invested funds are lying idle in the saving bank account of the investors.

Do you also have some idle cash in your bank account? Most of us like to maintain a good amount of cash in our saving account to maintain liquidity. As unexpected expenses can hit any of us anytime. So to get high rate of interest at the cost of loss of liquidity is not a good option. Lets talk about a bank facility which can make you earn as good as fixed deposit (8 to 12%) with liquidity of saving bank account.

Yes, the facility offered by banks which gives good returns with liquidity is called as ‘Auto Sweep’ or ‘Sweep In’. Lets have a look what ‘Auto Sweep’ is and how can you take the benefit of this facility.

auto sweep

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AUTO SWEEP

Auto sweep facility offers combine benefits of both saving and fixed deposit accounts. Where bank interlinks customers saving account with fixed deposit account and facilitate automatic transfer of extra funds from saving account to fixed deposit account to make you earn high rate of returns.

This bank facility takes a ‘threshold’ limit from its customers to provide auto sweep facility. Threshold limit is the amount of cash you want to maintain in your saving bank account. Bank keeps a close track on your accounts to ensure any amount above threshold gets moved to fixed deposit account. The best part of auto sweep lies with the fact that you can withdraw more than the threshold limit i.e the amount of cash available in your saving bank account.

Example

Lets have a simple example to understand the process of ‘Auto Sweep’ facility. Lets say Mr Rohit is having a saving bank account in xyz bank where his salary of Rs 50,000 comes every 5 day of the month. After all spending’s some cash remains idle in his bank every month. Mr Rohit enables auto sweep facility in his account with the threshold limit of Rs 20,000.

Now bank started moving any amount above Rs 20,000 into his fixed deposit account. With this rather than earning saving bank interest i.e 4% on his entire money Rohit start earning fixed deposit interest i.e 10% on his funds above threshold limit.

Rohit have total accumulated funds of Rs 1 lakh in his bank account out of which 20,000 is lying in his saving account and rest is in fixed deposit account. Now suppose he has withdrawn Rs 5000 from his account then this withdrawal will decrease his saving bank balance from 20,000 to 15,000. But in case of he withdraws Rs 30,000 from his bank account then in that case because of non availability of enough cash in the saving bank account Rs 10,000 will be auto reversed from the fixed deposit account automatically.

So this must be answer to your question – In case of investing our funds in fixed deposit how will we manage in case of some cash emergency?

Drawbacks Of ‘Auto Sweep’

  • Limit on minimum balance in fixed deposit is imposed by most of the banks. Where non-maintenance of the same can attract penalty.

List Of Banks Offering Auto Sweep Facility In India

Bank Name

Scheme Name

Official Link

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Allahabad Bank Flexi-fix Deposit http://www.allahabadbank.com/flexifd.asp
Andhra Bank AB Freedom (Flexi) Deposit Scheme http://andhrabank.in/english/freedomflexi.aspx
Axis Bank Encash 24 http://www.axisbank.com/personal/deposits/encash24/Flexi- Deposits.asp
Bank of India BOI Savings Plus Scheme http://www.bankofindia.com/boisavings.aspx
Bank of Maharashtra Mixie Deposit Scheme http://www.bankofmaharashtra.in/Mixie_deposit_scheme.asp
Corporation Bank Money Flex http://www.corpbank.com/asp/0100text.asp?presentID=73
Citibank
Development Credit Bank (DCB) Premium Saving Account http://www.dcbbank.com/individuals/savings_account/
premium_savings_account/premium_savings_account.html
HDFC Bank Super Saver Facility http://www.hdfcbank.com/personal/accounts/fixed_deposits/
super_saver_account/super_saver.htm
IDBI Bank Suvidha Fixed Deposit http://www.idbi.com/PBG_fixed_deposit.asp
ICICI Bank Saving Account http://www.icicibank.com/Personal-Banking/account-deposit/savings-account/index.html
Indian Bank SB Platinum http://www.indianbank.in/products.php?pr=43&sc=3&ty=3&ct=17
Indusind Bank Sweep In/Out Deposit http://www.indusind.com/indusind/wcms/en/home/personal-banking/deposits/sweep-in-sweep-out-deposit/index.html
Jammu and Kashmir Bank Smart Saver Scheme http://www.jkbank.net/customerTermDepositSchemes.php#smart
Kotak Mahindra Bank Regular Term Deposits http://www.kotak.com/bank/personal-banking/deposits/term-deposits/regular-term-deposits.html
Oriental Bank of Commerce (OBC) Flexi Fixed Deposit Scheme https://www.obcindia.co.in/obcnew/site/inner.aspx?status=2&menu_id=27
State Bank of India SBI Saving Plus Account http://www.statebankofindia.com/user.htm
State Bank of Mysore Multi Option Deposit Scheme http://statebankofmysore.co.in/index.php?option=com_content&view=article&id=62&Itemid=55
State Bank of Patiala Money Multiplier Saving Bank Account http://www.sbp.co.in/personal-banking/MoneyMultiplierSB.htm
State Bank of Bikaner and Jaipur (SBBJ) SBBJ Flexi Deposit Scheme http://www.sbbjbank.com/We-offer/Personal-Banking-Deposits2.htm#SBBJ FLEXI DEPOSIT SCHEME:
Union Bank Union Flexi Deposit http://www.unionbankofindia.co.in/
personal_Union_Flexi_Saving_Accounts.aspx
United Bank of India United Bonanza Savings Scheme http://www.unitedbankofindia.com/english/BonanzaSchemes.aspx

3 comments

  1. Can you provide me whether Central Bank of India has this facility??? Please

  2. I want to convert my savings account to Zero Balance Account. It is possible or not. Please reply.

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