How does Auto- Sweep facility work for me?
Once selected whenever theres a surplus in your account over the threshold limit, itll get converted into FD automatically.
Usually all the banks have auto-sweep in facility but these are generally account specific.
A nominee can claim funds only after presenting valid proof of the primary account holders death.
Also, you can choose your tenure of FD based on higher interest rates.A great option for people who require interest income at regular intervals.Comparison Chart, saving Account.Therefore, you wont lose out on the chance of earning higher returns and also wont have to check in with the bank every time you want to get.
Money can be withdrawn only after maturity for such schemes.
These loans are offered at lower rates of interest as these are classified under secured loans where the FD acts as collateral.
So, you have to check in with your bank whether your saving/current account comes with this option or you can transfer to the account with sweep-in facility.
So, in such cases, Sweep in/out facility comes handy.Amount above the threshold has been transferred to FD 10-11 Withdrawal:.FD schemes that offer premature or partial withdrawal with lower penalties are often the most sought after schemes.In Auto-Sweep FD, just like normal Fixed Deposit account, your funds earn a higher rate of interes t which is generally 7-8.Glossary Term Meaning Threshold Limit: The amount above which the surplus money in the saving bank account is converted into Fixed Deposit.Small banks and nbfcs offer relatively higher rate of interest on deposits made for same tenure.Some general information and FAQs related.