04-05-2017, 01:06 PM
For people who keep the money in the bank savings account one of the suggested products is Auto Sweep bank account. It gives the facility of withdrawing money, that is, liquidity and, at the same time, obtaining a higher interest rate on the fixed deposits linked to the savings account.
Automatic sweeping is a facility that interconnects the savings bank account with a fixed deposit account. In the automatic sweep account, the amount in the bank above a limit is automatically transferred to fixed deposits and earns a higher interest rate. If the balance of the savings account becomes low and there is a need, the fixed deposit will be broken and the amount will be returned to the savings account. Automatic Sweeping Account provides the combined benefits of a Savings and Fixed Deposit account.
Most banks offer interest at a rate of 4% p.a. (Some offer 6% - 7% interest in the savings account). While the fixed deposit for a year is around 8%.
