Maximizing Savings: Unlock the Power of Auto Sweep Facility for Higher Returns

While a savings account serves as a hub for daily transactions, the returns it offers may not be the most lucrative.

However, with the Auto Sweep Facility, you can transform your savings account into a dynamic tool for earning FD interest on surplus funds without compromising liquidity.

Understanding Auto Sweep Facility:

Auto Sweep Facility is a feature provided by banks on savings or current accounts, offering a dual benefit.

It automatically converts excess funds in the account beyond a set limit into a fixed deposit (FD), ensuring you earn higher FD interest.

The surplus funds are readily available in your savings account, offering flexibility and liquidity.

Benefits of Auto Sweep Facility:

1. Enhanced Returns: While savings account interest ranges from 2.5% to 4%, the Auto Sweep Facility allows you to earn FD interest, potentially reaching 5 to 7%. This means higher returns on your idle funds.
2. Liquidity without Penalties: Unlike traditional FDs, funds swept into an FD through this facility can be withdrawn without penalties or restrictions, providing unmatched liquidity.
3. Automated Management: The process is automated, requiring no manual intervention. Excess funds are seamlessly shifted to FDs and back to the savings account based on pre-set limits.

How to Activate Auto Sweep Facility (SBI Example):

For SBI customers, activating this feature is a straightforward process through Internet Banking or the YONO app.

Through Internet Banking:

1. Log in to Internet Banking and navigate to the Fixed Deposit option in the menu.
2. Click on “More” and access the Auto Sweep Facility page.
3. Choose the account, set the limit, and select the deposit time frame.
4. Confirm and submit, entering OTP or transaction PIN/password.
5. The bank will activate the service in the next working days.

Through YONO App:

1. Open the “e-fixed deposit” option in the YONO app.
2. Select “Multi Option Deposit” and choose the account for enabling the feature.
3. Submit the request, and enter OTP or transaction PIN/password.
4. The bank will complete the process, activating the feature in your account.