- How can you get interest rates on your Savings Account higher than the Fixed Deposit?
- Know about the Sweep-in Facility provided by top banks in India and its features.
There are so many individuals who have one or more savings accounts in their names. People keep their hard-earned money in their accounts and banks also provide interest on the amount. There won’t be anyone who doesn’t want higher returns on their money. That’s why people put their money in the Fixed Deposit (FD) Schemes too so that they can get higher interest as compared to a savings account. What if we tell you that there is a facility by which you can get Fixed Deposit Interest Rates on the money you put in your savings account?
Yes, banks provide the facility known as the Sweep-in Deposit Facility with which you can yield higher returns on the amount as compared to a savings account. The name of this facility can change from one bank to another bank. By having this facility, you will still have the liquidity of the savings account means you can withdraw your money anytime you want without any trouble. The interest rates tend to vary from one lender to another. In this article, we will be telling you about the Sweep-in Fixed Deposit facility, Top banks who offer this and things to keep in mind before opting for this. So, keep reading to know more.
Details about the Sweep-in Facility
Before knowing the banks that offer FD Interest on the Savings Account, it is important to know the process by which the Sweep-in Deposit facility works exactly. When you opt for a Sweep-in facility, any amount in your savings account above the threshold limit will automatically transfer to your Fixed Deposit account for a fixed tenure and will get higher returns on that particular amount.
Any amount above this limit will get transferred to the connected Fixed Deposit account, that’s why it is known as the Sweep-in facility. Also, whenever you need money, the deficit will be fulfilled from your FD account so you don’t need to worry about liquidity. This facility can be opted via Internet Banking in easy steps or it can be done from the bank branch too.
Let’s understand this through an example. Suppose you have INR 75,000 in your savings account. Now, you have opted for the Sweep-in Deposit facility and the bank has set a threshold limit of INR 30,000. So, the remaining amount of INR 45,000 will be transferred to your FD account. In case you need funds more than INR 30,000 urgently, the remaining funds will be fulfilled from your FD account. This is known as the Sweep-out facility. Unless you decide to break your FD, it will keep earning higher interest rates as compared to your savings account.
Top Banks that Provide the Sweep-in Fixed Deposit Facility
Now you must be thinking about what are those banks where you can opt for the Sweep-in Fixed Deposit facility. Hence, we are providing the details of some of the top banks that provide this facility so that you can choose the right option for you. Have a look!
HDFC Bank Sweep-in Fixed Deposit Facility
Being the leading private bank of India, HDFC Bank offers a wide range of banking products to the customers. Among them, its Sweep-in FD is one of the most popular ones. With this facility, you can earn higher interest rates on your FD amount and also enjoy the liquidity and flexibility of savings accounts that you generally lack in a normal FD.
Whenever you need funds urgently, the required funds will be transferred from your deposit to your account. For example, you have an upcoming EMI or issued a cheque but don’t have a sufficient amount in your account. Well, you don’t need to worry as the required amount will be transferred from your deposit. Here are some features of it that you should look at.
- You will get higher interest rates on your fixed deposit along with the liquidity if your account is linked with the Sweep-in facility FD.
- You will always have the required funds in your account because of the Sweep-in facility. You will never have to worry about the missed EMI payments or cheques bouncing.
- You can also link multiple Fixed Deposit accounts with your savings account with the Sweep-in facility. The funds will be transferred from the last deposit added by you according to the LIFO (Last-in-first-out).
- You will have the freedom to choose the period, maturity and payment of the Fixed Deposit.
- If you have an FD of amounts greater than or equal to INR 5 crore or less than INR 25 crore, you cannot opt for the Sweep-in or Sweep-out facility.
How to Apply for this Facility?
You can easily apply for this facility via Internet Banking by following a simple few steps. We are showing them below. Have a look!
- Login to your Netbanking Account by putting your credentials.
- You will see the ‘Fixed Deposit’ tab where you will need to click on the Fixed Deposit Sweep-in Facility.
- Choose the FD account number and Savings Account number that you want to link in for the facility.
- After choosing the account, you will only need to click on Continue and Confirm to start it.
SBI Multi Option Deposit Scheme (MODS)
The largest bank of India, State Bank of India (SBI), provides the Sweep-in FD facility but with a different name. Popularly known as the SBI Multi Option Deposit Scheme, this facility helps customers link their term deposits with their Savings or Current Account. When you open a normal Fixed Deposit account, you can only withdraw the total amount when you need it. But in MODS, you have the option to withdraw in multiples of INR 1,000 according to your financial needs. The required amount will be transferred to your linked savings or current account. The remaining amount in your MODS account will keep earning interest as per the rates.
There is a pretty important thing that you need to remember that auto sweep of INR 10,000 or more will only happen if your linked savings or current account has a minimum balance of INR 35,000.
In the table below, we are presenting some of the important features related to the SBI Multi Option Deposit Scheme. Please check them!
|Features of SBI MODS Account||Details|
|Type of Account||Term Deposit or Special Term Deposit Account|
|Minimum Period of Deposit||1 year|
|Maximum Period of Deposit||5 years|
|Minimum Term Deposit for MODS Creation||INR 10,000|
|Maximum Term Deposit||No Limit|
|Rate of Interest||As applicable to Term Deposits|
|Minimum Balance Requirement in the Savings Account||INR 3,000 for all branches|
|Eligibility||Resident Individuals (Single or Jointly), Minor|
If you want to open an SBI Multi Option Deposit scheme, you can easily do it with the help of your Internet Banking. Other than this, you can also visit your branch and apply for this facility.
Bank of Baroda Super Savings Account
Bank of Baroda is one of the leading public sector banks of India that provides the facility of Auto Sweep In and Sweep Out facility to the customers with its Super Savings Account. With this facility, customers can utilize their extra amount in their savings account into the Fixed Deposit for a period of 81 days. In any case, if there are insufficient funds in your account, the funds from your fixed deposit will be automatically transferred back to your account. Also, you don’t need to pay any charges for the demand drafts or banker’s cheque to meet your personal needs.
There are so many benefits of the Bank of Baroda Super Savings Account, such as Free collection of cheques drawn in the customers’ favour. Some of the other benefits are mentioned below. Have a look!
- To make the first Sweep Out of INR 10,000, your savings account must have a minimum balance of INR 60,000. Below this amount, you cannot opt for the Sweep-out facility.
- The initial threshold limit is fixed at INR 50,000 which means any amount above this limit will be transferred into the Fixed Deposit of a minimum of INR 10,000 for a period of 81 days.
- The threshold amount can be increased in multiples of INR 1,000 on the customer’s request only. Similarly, the Sweep-in amount can be increased in the multiple of INR 10,000. The sweep will happen every Monday.
- Any outstation cheque upto INR 25,000 will be credited immediately into your account.
- The interest on your fixed deposit will be paid quarterly.
- With your Bank of Baroda Super Savings Account, you will get an unlimited cheque book facility.
ICICI Bank Money Multiplier Plan – Savings Account
ICICI Bank comes in the list of those few banks that provide seamless banking services to the customers and one of the popular banks of India. If you want to earn higher interest rates on your deposit amount with also having the liquidity of the savings account, the ICICI Bank Money Multiplier Plan could be a suitable option for you.
With this Sweep-in facility, you can link your fixed deposit to your savings account and enjoy several benefits. Below are some of them. Have a look.
- The minimum balance in your Money Multiplier Plan must be INR 10,000. So, anything above this amount will be deposited into your FD for a tenure of a minimum of 1 year or more if you want. The FD will be in the multiples of a minimum of INR 5,000.
- This FD will ensure that you get returns due to the higher interest on the idle amount in your savings account. You can link more than one fixed deposit to your savings account and the sweep-in facility will be automatically on the basis of Last-in-first-out (LIFO).
- ICICI Bank will automatically renew the principal and accrued interest for the same tenure when your deposits will fall due.
You can apply for the ICICI Bank Money Multiplier Scheme by going to the official website of ICICI Bank. You will need to fill in a few details such as your name, mobile number, etc. Other than this, you can also visit any branch of the ICICI Bank to complete the process.
Kotak Mahindra Bank Sweep-in Facility
With the help of Kotak Mahindra Sweep-in facility, you can enjoy the freedom of never running out of funds. So, whenever you will be falling short of the funds, the deficit will be withdrawn from your fixed deposit and the remaining amount will keep getting higher returns.
Some of the features of the Kotak Mahindra Bank Sweep-in facility are mentioned below. Do check them out!
- You need to remember that you can link only one fixed deposit account to one savings account for the sweep-in facility. However, you have the freedom to link more than one fixed deposit to your current or savings account.
- Any deficit in your account is swept out from your linked FD in the units of INR 1. So, you don’t need to worry about any payment getting processed.
- Between the principal and interest amount, the principal amount of the FD will be considered for the Sweep-in facility.
- You can also avail of the overdraft facility against your Kotak Mahindra Bank Fixed Deposit.
If you want to apply for the Kotak Mahindra Bank Sweep-in facility, you just need to go to the official website of the Kotak Mahindra Bank and fill a few basic details.