New Delhi Do you know how much your Saving Bank Account earns for you? Keeping money in a bank account is especially done to keep track of your daily expenses and income. But, do you know that your savings account can give you a higher interest rate on your unutilized money or deposited amount. For this, you will need to know about ‘Save Out’ and ‘Sweep-In’ facilities from your bank.
Facility is available in all banks
It provides special sweep-out facility to almost all bank saving bank accounts in our country. Where Surplus Funds are kept in fixed deposits. If you ever need money or you do not have that much money in your bank account, then a fixed deposit can come in handy at such a time.
In this way, your money never goes waste in your bank account. A linked fixed deposit earns higher rates of interest than a regular savings bank. The most important part of this facility is that you do not need to track your inactive funds regularly. Also, there is no need to give instructions to the bank to make a fixed deposit from its savings account. This process happens automatically.
At the time of availing this facility, you have to give instructions to the bank once. You have to set the limit of Surplus Fund in your account. In some cases, banks have a fixed limit anywhere between 10,000 and 1 lakh.
This fund is formed when FD matures
Once the balance limit is fixed in your account, banks create FD for Surplus Fund. The FD time may vary from one year to five years depending on the bank. In case of FD maturity, it is auto-renewed by the bank. This facility can be linked with other bank accounts as well as special accounts for women and children etc.
Every bank has a different name for the savings bank account that provides sweep-out facility. Like, HDFC Bank named it ‘Moneymaxize of HDFC Bank’, SBI named it ‘Savings Plus Account’, Bank of Baroda named it ‘Edge Saving Account’.