There is hardly any person who does not have a bank account, but in today’s time everyone has a savings account. People open their savings account at the bank or post office. Many people have a savings account to protect their money and interest rates on it. Interest rates on savings accounts vary from different banks. Usually you get an interest rate of 2.50 to 4 percent, but do you know that your savings account can help you earn more returns? Yes, you can get equal returns of fixed deposits on your savings account. For this, you just have to adopt auto sweep service. Let us tell you in detail about it.
What is auto sweep service?
You can avail high returns through auto sweep service in savings account. Auto sweep service is basically a combination of both savings account and fixed deposits. The account holder gets the same return as FD by choosing the option of auto sweep service in the savings account.
Saving account money turns into FD
Actually, the auto sweep is an automated facility under which if the money deposited in the savings account exceeds a fixed limit, that amount turns into a fixed deposit. In such a situation, the account holder gets the benefit of more returns than the savings account.
For example, if a person named ‘A’ has opened a savings account with auto sweep facility, then his account should be at least 5 thousand rupees. In this, if the fixed limit is 10 thousand rupees, then ‘A’ deposits 50 thousand rupees, then apart from the fixed limit of 10 thousand rupees, the remaining 40 thousand rupees will go to the FD account and it will get the benefit. Interest rate on this. However, FD interest rate will not be available on the money transferred in case of reverse sweep.
How to take advantage of auto sweep facility?
To avail the auto sweep facility, you have to fill a form. If you already have a savings account in the bank, then you can go to your branch and fill a form for auto sweep, after which you can also get the benefit of this facility.
