new Delhi. By the way, most people prefer to have FD better than having more money in savings account. Because it gets more interest than a savings account, but due to the huge changes and market risk due to lockdown, people are preferring to keep money in savings account. But you can also get good interest in a savings account like FD (Fixed Deposit). For this, many banks are offering the option of sweep in / sweep out facility. So what is this facility and how can we avail of it, let us know.
What is sweep-in and sweep-out
These are an automatic special savings account, in which your surplus funds are put into FD. Which will give you good interest. Its special thing is that when you need money, the amount invested in FD will automatically come into the savings account. With this, there will be no problem of low balance in the account. At the same time, when you have more money in your account, it will automatically be converted into FD.
Which banks will get the facility
Sweep-in sweep-out account facility is available in almost every commercial bank of the country. These accounts are known by flexi-deposit accounts and various other names. The FD duration and features may be different as per the rules of different banks. By availing this facility, you will get more interest than a normal savings account. How much the interest rate will be depends on the policy of different banks.
These are the advantages
By taking the sweep-in sweep-out account facility, you do not need to track the useless funds lying in your account. All you need to do is to instruct the bank to make FD from savings account. For this, some formalities have to be completed. After this, the amount deposited in your account is automatically transferred to FD. Above how much amount or surplus amount you want to make it, you can also instruct the bank for this thing. You can set any limit in it from Rs 10,000 to Rs 1 lakh. Once the money in your savings account reaches this limit, the bank makes an FD for the surplus amount for a period of 1 to 5 years. This bank also renews automatically when the FD matures.