What is the Difference Between Auto Sweep In and Auto Sweep Out in Bank Account?

Subscribe to GoodReturns
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

    Now, banking is easy with fast paced technology. Many banks provide an option where the excess amount in your savings bank account after the threshold limit will be booked as fixed deposit.

    Any extra amount in your savings will be moved as fixed deposit and one can earn higher interest rate on the amount, this process is called as auto sweep out.

    Difference Between Auto Sweep In and Auto Sweep Out in Bank Account?

    By opting for Auto Sweep facility, you can fetch around 8-9% depending on the bank.

    How to it works?

    Say, for example, Arun has set a threshold limit of Rs 40,000 in his account. Any amount more than that will book as fixed deposit. The tenure and interest rates vary with the bank. This facility can be used to park as emergency funds.

    Sweep in

    Some banks have the facility where any deficit in your savings will take care of. As the exact value comes from your fixed deposit.

    This will be useful in case of where you are withdrawing the amount from ATM, any amount which is short will be pulled from fixed deposit.

    In HDFC Bank, deposits are broken down in units of Rs 1/-thereby minimising Interest Loss. Remaining amount be intact in fixed deposits.

    One can reap the benefits of altering the period of deposit, maturity and payment instruction, principal amount and roll over period.

    The names of these process may differ with banks like Axis Bank call it Encash 24, HDFC Bank named it Super Saver Facility. Check with your bank before availing this facility.

    GoodReturns.in

    Read more about: banking savings account
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more