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Savings account is generally used for saving only. Therefore the return on this is also only 2-3 percent. But now you can get tremendous returns on your savings account also. Now, with the help of auto sweep facility, you can convert the money lying in your savings account into a means of getting good returns. Very few people know about this facility. Today we will tell you what auto sweep is and how it works.
In the auto sweep facility, your money goes into the savings account itself but up to a limited amount. As soon as the amount exceeds that limit, the excess amount is converted into an FD, helping the account holder earn good returns. You don't have to do any extra hard work for this, it happens automatically. That's why it's called an auto-sweep feature.
Suppose you have opened a savings account with auto sweep facility. Now you have to set a limit as to what amount your money should be converted into FD. Suppose you set the limit at Rs 10,000 and deposit Rs 40,000 in the account. That means there is an additional amount of Rs 30,000 which will be converted into FD. You will get FD interest on this amount and savings account interest on Rs 10,000.
If you doubt that the money converted into FD will get stuck then you are thinking wrong. You can withdraw the amount in FD anytime through auto sweep. When you need money, this amount will come to the savings account and you can easily withdraw this money. It is worth noting that the returns on FD through auto sweep vary from account to account.
