Are you worried about the low interest rates on your savings account? Now, the money in your savings account can earn as much as an FD (Fixed Deposit). Learn about the bank’s unique ‘Auto Sweep’ feature, how it works, and how you can activate it in minutes to turn your idle funds into active funds—this financial trick will keep your money safe and earn triple the interest.
Limited Savings Account Returns
These days, most people keep their hard-earned money in savings accounts because they’re easy to manage and allow for quick withdrawals when needed. This convenience is great, but there’s one major drawback: the interest rate on savings accounts is very low. This rate typically ranges from 3% to 4%.
We often regret thinking that if we had invested this money in an FD, we would have earned better returns. But now, you don’t have to compromise between the convenience of an FD and a savings account. There’s a special service that, if activated, allows you to earn excellent FD-like interest on your savings account.
What is Auto Sweep
‘Auto Sweep’ is an incredible feature that continuously monitors your savings account. This feature automatically puts your money to work for you. First, you set a threshold limit with the bank, for example, ₹50,000. As soon as your account balance exceeds this limit, the excess amount is automatically transferred to a term deposit. This transferred amount now earns FD-like interest, which can often be up to three times higher than savings account interest, i.e., around 6% to 7.5%.
How it works
When you need money and withdraw money from your savings account, this feature intelligently executes a reverse sweep. If your savings account balance falls, it instantly transfers the same amount from your term deposit (FD) back to your savings account. This unique feature eliminates the need to open a separate FD or manage it repeatedly.
Why is Auto Sweep a Boon
Auto Sweep is a real boon for those who frequently have large balances flowing through their accounts throughout the month but still want to maintain liquidity. Through this feature, you benefit from the high interest rates offered by an FD, while maintaining easy access to your funds.
Your money is completely safe, instant withdrawals are available, and you earn bumper FD-like returns from a savings account without any extra effort! This is the simplest way to invest smartly. It’s extremely beneficial for those looking to convert their idle money into active earnings.
How to Activate Auto Sweep
If you want your savings account to generate returns as great as an FD, the first step is to activate ‘Auto Sweep’. This process is extremely simple and can be completed in minutes. You can activate this service by visiting your bank branch, where you’ll need to set a threshold above which the amount will be transferred to the term deposit.
Also, if you use digital banking, this feature can be easily activated through your online banking (net banking) or the bank’s mobile app. Usually, this feature is available under the ‘Services’ or ‘Term Deposit’ section. Once activated, your excess funds will automatically be converted into FDs and generate higher returns. The same amount will be immediately returned to your savings account when needed—a perfect combination of financial discipline and increased income. So, don’t let your savings sit idle, but instead turn them into active earnings by embracing this magical feature!