What Is Auto Sweep Facility In Sbi

Auto Sweep Facility is a feature offered by State Bank of India (SBI) that allows customers to optimize their savings account balance. With this facility, any excess funds in the savings account are automatically transferred into fixed deposits, earning higher interest rates. This article explores the concept of Auto Sweep Facility in SBI and its benefits for customers looking to make the most out of their idle money.

What does the auto sweep facility entail?

As is implied by the phrase ‘auto sweep’, this feature sweeps funds lying in the savings account and transfers them to your fixed deposit account. All you need to do is connect your savings and fixed deposit accounts and set up a monetary limit.

The auto sweep facility in SBI becomes active when the savings account balance exceeds a certain limit. The surplus amount is automatically moved to a fixed deposit account, allowing it to earn interest at a faster rate than the savings account.

What is the functioning of the auto sweep facility?

To utilize the auto sweep facility in SBI, you must set a specific limit on your savings account. When the balance surpasses this limit, any extra funds will be automatically moved to your fixed deposit account. This process is known as sweep-in and both accounts will continue to earn interest accordingly.

However, it does not imply that you are unable to withdraw the surplus amount. In simpler terms, utilizing the sweep-in facility does not lead to a decrease in the availability of funds transferred. For instance, if you request an amount that surpasses the specified limit from your savings account, it will be automatically transferred from your fixed deposit account back into your savings account.

Imagine you have a savings account with an auto sweep feature, where the minimum balance needed is Rs.10,000. If you deposit Rs.30,000 and set a threshold limit of Rs.15,000, the extra amount of Rs.15,000 will be automatically transferred to your fixed deposit (FD) account. Both accounts will earn interest on the deposited amounts.

If you opt for an auto sweep facility with SBI and withdraw Rs.5000 from your fixed deposit, the interest rate will only be applicable to the remaining amount of Rs.10,000 in your FD account.

How to Enable Auto Sweep Facility in SBI?

The process to enable the auto sweep facility at State Bank of India, the largest bank in India, follows similar steps. Below are the instructions for activating this feature at SBI.

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To begin, go to the official SBI online banking website. Enter your internet banking credentials, including your username and password. Then, input the captcha code and One Time Password (OTP) that will be sent to your registered mobile number.

Step 2: Once redirected, navigate to the ‘Deposit and Investment’ option located at the top of the screen and click on it. Select the ‘Deposit’ option.

Step 3: You’ll be redirected to a screen where you need to select the ‘Auto Sweep Facility’ option.

Step 4: You’ll again be redirected to a screen where the bank account details, including account number and address, will be displayed. Click the ‘Continue’ button.

Step 6: A user interface will appear on the screen where you need to input the necessary information for the auto sweep facility. This includes selecting the sweep cycle (either monthly or weekly), specifying the start date, entering the threshold amount, and indicating the resultant balance.

When the funds in your savings account reach a certain level, the auto sweep facility will begin to function. The remaining amount after this process is the balance that will be left in your savings account.

Kindly be aware that the process mentioned above may vary depending on the specific online banking platform of your particular bank.

Is auto sweep good in SBI?

The usefulness of autosweep depends on having surplus money at the end of the month, after covering all your expenses. This implies that you have a significant amount in your bank account and rarely withdraw funds from fixed deposits (FDs). If you meet these criteria, opting for autosweep can result in better returns.

On the other hand, if you frequently withdraw money from your FDs or consistently maintain low bank balances at the end of each month, then autosweep may not provide significant benefits. It is important to assess your financial habits and cash flow patterns before deciding whether to opt for this facility.

Additionally, keep in mind that different banks may offer variations of autosweep with varying interest rates and terms. Before making a decision, compare different options available across various banks to ensure maximum returns on idle funds while considering factors like minimum balance requirements and penalties for premature withdrawals.

List of Banks Offering Auto Sweep Facility

Some of the banks that provide the auto sweep facility include Bank of India, Bank of Maharashtra, State Bank of India, HDFC Bank, and ICICI Bank.

Which is better: auto sweep or fixed deposit?

Normal fixed deposits are a great option for people who have a large sum of money to invest and want a guaranteed return over a specific period of time. These types of investments are suitable for individuals who prefer stability and predictability in their financial planning. For example, if you receive a lump sum amount from an inheritance or bonus, you can consider putting it into a normal fixed deposit to earn interest on it.

On the other hand, auto-sweep FDs are more suitable for individuals who maintain high balances in their savings accounts and need flexibility in managing their investments. With auto-sweep FDs, any excess funds above a certain threshold in your savings account will automatically be transferred into an FD to earn higher interest rates. This way, you can enjoy the benefits of both liquidity and higher returns on your idle money.

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Benefits of auto sweep facility

Discussed below are some benefits of the auto sweep facility:

The auto sweep facility in SBI allows you to create a separate fund that can be accessed in times of emergencies, eliminating the need for taking loans to manage financial difficulties.

Is it possible to withdraw funds from an auto sweep account in SBI?

To withdraw money from an SBI auto sweep FD account, you can go to a nearby branch of the bank. Once there, approach the customer service desk and ask for a withdrawal form. Fill out the form with accurate details such as your name, account number, and the amount you wish to withdraw.

Additionally, it is advisable to carry your passbook or certificate for the fixed deposit when withdrawing money from an auto sweep FD account at SBI. The bank may require these documents as proof of ownership and verification purposes.

Remember that different banks might have slightly varying procedures for withdrawals from auto sweep FD accounts. Therefore, it is always recommended to check with SBI specifically about their requirements before visiting the branch. You can contact their customer care helpline or visit their official website for more information on documentation needed and any additional steps involved in withdrawing funds from an auto sweep FD account at SBI.

Drawbacks of Auto Sweep Facility in SBI

Take a look at the drawbacks of the auto sweep facility mentioned below:

There may be extra fees associated with using the auto sweep facility, so it is important to inquire about the charges before opting for this banking feature.

It is recommended to avoid withdrawing funds from an auto sweep account before the completion of a sweep cycle, as there may be penalties for premature withdrawal.

Is auto sweep a risky option?

Almost every bank provides autosweep facilities wherein any extra funds beyond a certain limit are automatically transferred into FDs with predetermined maturity periods such as one year. By doing so, banks ensure that customers have access to better interest rates without requiring them to manually manage these transfers themselves.

Final words

Auto sweep facility is a useful banking feature that allows customers to increase their savings and have easy access to their money. Instead of leaving extra funds unused in a savings account, it is recommended to utilize the auto sweep facility for better financial growth and flexibility.

Auto Sweep Facility is a feature provided by State Bank of India (SBI) that allows customers to automatically transfer their idle funds from their savings account into fixed deposits. This helps in maximizing the interest earned on the deposited amount. To activate this facility, SBI customers need to visit their branch and submit an application form. Once activated, any excess balance above a certain threshold in the savings account will be transferred to a fixed deposit for a specific tenure chosen by the customer. The benefits of using Auto Sweep Facility include higher interest rates compared to regular savings accounts, flexibility in choosing the tenure of fixed deposits, and easy access to funds whenever needed without breaking the entire deposit.

Is it possible to take out funds from an auto sweep account?

– When your account balance surpasses a specific threshold limit, the surplus money is moved to your fixed deposit account.

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– This automatic transfer of funds is called sweep-in.

– Both your savings and fixed deposit accounts will accrue interest on their respective amounts.

– You can still withdraw the excess funds from your savings or fixed deposit account as required.

Converting my SBI account to auto sweep: How can I do it?

Enabling the Auto Sweep facility allows you to make use of idle funds in your savings account by automatically transferring them into fixed deposits or other investment options that offer higher interest rates. This feature helps maximize returns on surplus money while maintaining liquidity.

By following these simple steps mentioned above, you can easily enable the Auto Sweep facility for your SBI account online without any hassle. It is an efficient way to grow your money and make it work for you by earning additional interest income on unused funds in a convenient manner.

Remember that activating this feature provides flexibility as it ensures that excess funds are not left idle but utilized effectively for potential growth opportunities offered by various investment avenues provided by SBI bank.

Minimum balance required for auto sweep-in in SBI?

The auto sweep facility in SBI, also known as the Savings Plus account, allows customers to earn higher interest rates on their savings. This facility works by automatically transferring any excess funds above a certain threshold balance into fixed deposits called Multi Option Deposits (MODs). These MODs have a minimum sweep amount of Rs 10,000/-.

To avail of the auto sweep facility, customers need to maintain a Minimum Threshold Balance and Minimum Resultant Balance of Rs 35,000/- and Rs. 25,000/- respectively. Any amount exceeding the Minimum Threshold Balance will be transferred to an MOD in multiples of Rs 10,000/-. The customer can choose the tenure for these MODs ranging from one year to five years.

– Auto Sweep Facility: Allows automatic transfer of excess funds above a certain threshold balance into fixed deposits.

– Minimum Threshold Balance: Rs 35,000/-

– Minimum Resultant Balance: Rs. 25,000/-

– MOD Tenure Options: One year to five years

Overall, the auto sweep facility in SBI provides an efficient way for customers to optimize their savings by earning higher interest rates through fixed deposits while maintaining easy access to their funds when required.

What is the top bank for auto sweep feature?

Bank of Baroda provides its customers with an attractive option known as the Super Savings Account. With this account, customers can enjoy various benefits such as high-interest rates on their deposits and easy access to their funds through ATMs and online banking services. Additionally, they have access to features like sweep-in facility where surplus money from their savings account is automatically invested in fixed deposits.

Checking the balance of my SBI sweep account

With Auto Sweep Facility, any surplus funds in your SB account are transferred to a fixed deposit or term deposit account. This helps you earn higher interest rates on your idle money while still maintaining liquidity. The minimum threshold for transferring funds from your SB account to an MOD account is usually set at Rs. 35,000 or multiples thereof.