Business Desk. Instead of depositing money in a bank account, people prefer to do FD of money in the bank, because very little interest is available in the savings account or current account of the bank. At the same time, you get very high interest on FD. In such a situation, people like to do FD of their money. But if you want, you can get FD like interest in your savings account also. Actually, this can be done through the auto sweep service of the bank. Let us know what is the auto sweep service of the bank.
What is Auto Sweep Service?
Auto sweep service is a facility provided in every banks. By enabling this service you can get more interest in your savings account. This service helps in getting higher interest on surplus funds.
When you enable this service, if the amount in your account exceeds the prescribed limit, it is automatically transferred to Fixed Deposit (FD).
This limit is set by you. If you have more money than the limit, the excess amount is automatically converted into FD. With this, you get interest on your deposit just like FD.
What will be the benefit?
When you get a normal FD from the bank, your money is fixed for a fixed period of time. That means you cannot withdraw your money before time. But if you use auto sweep service, your money is automatically converted into FD.
Along with this, you can withdraw FD money anytime. You can withdraw FD money just like depositing money in a normal account. The interest received on FD under Auto Sweep service varies from bank to bank.
