SBI RD Scheme : We all open our savings account in the bank because whether it is salary, any kind of cash transaction or taking advantage of government schemes, work cannot be done without a bank savings account. Most people definitely have some savings in their savings account, which they keep with the thought that sudden expenses can be met with this savings.
Banks also pay interest on your money from time to time, but this interest is not very much. It is around 2.5% to 4%. Different banks offer different interest on savings account. But if you add a facility to your savings account then you will start getting FD interest on the amount. But to take advantage of it, you will have to enable this service in it.
Know what is this facility
We are talking about the auto-sweep feature. If you add it to your savings account, an automatic facility is added to your savings account. In this, a limit is fixed in the savings account. Whatever amount exceeds that limit, it is automatically converted into Fixed Deposit i.e. FD and you get FD interest on that amount. If the account balance is below 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 Feature
Generally, the interest received on savings account is much less as compared to FD, but you can also get 5 to 7 percent interest on FD. In such a situation, by adding auto sweep facility, you can get good returns through FD on savings account. Apart from this, when you get FD, it has a maturity period. If you break the FD midway, you will have to pay a fine. But when auto sweep facility is added to the savings account, you are not bound by any such lock-in period. You can withdraw money from your account whenever you want.
How will this service start
Banks provide various means to provide this service to their customers. Here we are telling how 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 facility and decide your amount. Here you will also have to choose the time limit for deposit.
After this click on OK and submit. You 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 e-fixed deposit option from the menu.
Here select Multi Option Deposit option 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. This facility will be enabled in your account once the bank completes the process.
