Almost every person uses a bank account, especially working people have a heavy dependence on it. Usually people open savings or current accounts in banks. People have to suffer because of this, because banks do not give much return on savings account or current account. On the other hand, if the same money is made FD in the bank, then the benefit of comparatively higher interest is available. There is a great feature to bridge this gap between savings and current account and FD, about which we are going to tell you in detail here.
Why is sweep in beneficial?
First of all, let us know some basic things about savings and current account and FD. The biggest advantage of savings and current account is that you can put as much money as you want in it anytime and withdraw it accordingly when needed. FD is troublesome in this case, because once the money is parked in it, it gets tied up for some time. On the other hand, according to the return, the weight of FD becomes more than that of savings and current account.
The gap between savings-current and FD is removed
Sweep in feature mainly works to bridge these two gaps. This feature gives you the facility to deposit and withdraw money as per your need, and also ensures that you get FD interest. Let us know how the sweep in feature works? What are the advantages and disadvantages of sweep in FD?
Who is this feature for?
Let us understand with an example. Suppose you also do a job and have business or any other means of earning. Your daily expenses go out of your salary. Your salary comes in savings or current account. On the other hand, the money that comes from other sources is extra for you, but it is not fixed. Sometimes even 10 thousand comes from there, and sometimes even 50 thousand. There is no fixed time or interval of arrival. In such a situation, you keep the extra money coming from other sources in the savings or current account itself, on which you get very nominal interest from the bank. This feature can also be used by people who are getting surplus income from any one source.
How does sweep in feature work?
Here sweep in is a very useful thing. This feature puts the access money in your savings or current account into the FD. For example, suppose that your monthly expenditure is 50 thousand. You put a limit of 50 thousand in your account under the sweep in feature. Now it will happen that whatever fund will remain in your account above 50 thousand rupees, it will itself become FD. With this, you will get the benefit of higher interest on your access fund, which will be equal to a normal FD.
Will the money be blocked like FD?
The biggest problem in getting FD is that money gets blocked in it. Suppose you get FD for 5 years for 2 lakh rupees, then here your 2 lakh rupees got jammed for 5 years. Even if suddenly there is a big need, you cannot withdraw money from the FD, because if you break the FD before the maturity of 5 years, then there will be a loss. Sweep in feature also removes this problem. Under this feature, in case of sudden need, you can withdraw money from this FD for some time and later replenish it. You will not need to pay any fee or penalty if you put the money back in time.
How to get the benefit of sweep in?
Now it comes to the point that how to take advantage of this sweep in feature? You can take advantage of this facility by talking to your bank. All major banks provide this facility to their customers. Contact the bank where you have your savings or current account. The bank will open your sweep in FD account. This new sweep in FD account will be linked to your old savings or current account. You can set sweep in limit as per your convenience. That’s it… By doing this, you will start enjoying FD on a normal account!
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