Although bank deposits typically earn minimal interest, other savings accounts such as bank FDs offer higher interest rates, yet you can earn more interest by choosing a savings account or current account like FD. In fact, most individuals are unaware that every bank provides auto sweep service to its clients. By doing this, you have the opportunity to earn up to triple the amount of interest on your account.
To receive the advantage of this service, all you need to do is visit the bank and request to activate this service. To begin with, we will discuss the Auto Sweep service, which is a feature designed to assist customers in earning higher interest on extra funds. If activated, any funds exceeding a specified limit or surplus in your savings account will be moved to a fixed deposit account, also known as FD.
In this scenario, you would receive the interest rate from a bank fixed deposit instead of the interest earned from a savings account.
Comprehend the auto sweep feature provided by all banks in simple terms, as activating it on your savings account can result in higher interest on the account linked to this service. In fact, once the deposited amount in your savings or current account exceeds the sweep limit, the auto sweep function is triggered.
When observing its functionality, you must establish a cap on your account, at which point your deposit is automatically transformed into FD. For instance, if you have designated a cap of Rs 20,000 in the account and have deposited Rs 60,000, the excess amount of Rs 40,000 will be converted into a Fixed Deposit under this facility.
One advantage of this service is that when customers see increased returns on their bank account deposits, it encourages them to save more. This further boosts the routine savings of individuals. In addition to that, you can monitor your spending and establish a budget using this feature. The Auto Sweep service eliminates the need to transfer money to FD manually by automatically doing it for you.
