Do you often find yourself with idle balances in your savings account that struggle to generate good returns? This pattern could diminish the purchasing power of your funds over time. In today’s fast-paced world, where people barely have time to regularly check their account balances, not everyone knows how to maximize the growth of idle money in their savings accounts. Wouldn’t it be great if your savings account could practically grow itself? That’s where an auto-sweep facility becomes useful.
So, what is an auto-sweep facility?
An auto-sweep facility is a banking service that combines the benefits of a savings account and a fixed deposit. It automatically transfers surplus funds into a fixed deposit when the balance in your bank account exceeds a specified threshold. This threshold is set by the account holder or predetermined by the bank.
This feature offers you the best of both worlds, i.e., 24/7 liquidity of a bank account and FD-like higher returns.
How does the auto-sweep facility work? A detailed look
When you choose the IndusInd Bank Indus Multiplier Max Savings Account, the threshold limit is ā¹20,000. The smart-sweep feature automatically turns any excess balance above ā¹20,000 into fixed deposits, where they earn higher returns.
Here’s how the process works:
Suppose your account balance reaches ā¹70,000. Here, the excess ā¹50,000 will be transferred to FDs in multiples of ā¹1,000. If your account balance drops below the minimum balance threshold of ā¹10,000, the bank will break the FD created by the sweep and transfer the necessary amount to your account. The best part is that there is no premature closure penalty applicable.
This way, the IndusInd Bank Indus Multiplier Max Savings Account makes your idle funds actively work to accrue more interest and boost your financial health. Look at the additional features you get with this digital savings account:
- A 100% online account opening process
- Low balance requirementĀ
- Discounted locker facilitiesĀ
- Cashback on purchasesĀ
- Impressive offers on travel, dining, fashion, and shoppingĀ
- Complimentary insurance with your Platinum Debit Card (limited-time offer)
Open a bank account with IndusInd Bank today and give your hard-earned savings a boost!
Multiple benefits of the auto-sweep facility
With an auto-sweep facility, you benefit from combining two excellent financial products. Here is what you can typically expect:
| Higher interest earnings | The major advantage of the savings account auto-sweep facility is the optimisation of interest earnings. Money that would earn minimal interest in a bank account earns higher interest in a fixed deposit effortlessly. |
| Liquidity | An auto-sweep facility does not block your funds. If you need amounts exceeding your bank balance, the ‘reverse sweep’ feature breaks the fixed deposit and brings the needed amount back into your account. |
| Convenience | The automatic transfer of excess funds means you no longer have to manually monitor your balance and transfer funds between savings and FD accounts. Everything happens automatically. |
| Zero penalty on withdrawals | Banks do not impose a penalty for breaking the fixed deposit created through the auto-sweep facility. This means you can manage your urgent transactions in a hassle-free manner. |
| Financial discipline | The feature of auto-sweep in bank accounts discourages impulsive spending and unnecessary withdrawals, as a portion of your surplus is automatically transferred to an FD. |
Key takeaways
An auto-sweep account gives your savings strategy a new direction. It transfers excess funds into fixed deposits, which not only helps you earn higher returns but also maintain financial discipline. Moreover, penalty-free withdrawals mean you always have access to the funds to meet any financial needs. All these benefits help you earn and save more without any additional effort.
So, don’t let your hard-earned money sit idle anymore! Activate the auto-sweep facility in your savings account today!
