|Author: [Anonymous] 16 Mar 2016 Member Level: Diamond Points : 1 (Rs 1) Voting Score: 0|
I recently came across such query for FD and would like to share with you, so, please check "How it works" part to know more detail about Sweep In facility from this URL http://articles.economictimes.indiatimes.com/2011-04-04/news/29374920_1_sweep-deposit-savings-account.
Hope this explains well on Sweep In facility.
|Author: Mahesh 16 Mar 2016 Member Level: Gold Points : 2 (Rs 2) Voting Score: 0|
The sweep in facility in the FD can explained like this.
You have a FD of say 10000 Rs. You get to break this FD when you're running low on the balance. You get to use the FD as a part of the balance. In short the money can be used in emergency purpose. The FD at the same time gets break and the interest earned upto that point is also paid.
This is the sweep in facility that is offered by the banks. There are some of the variations of the feature. And now you can use the sweep in a way with which you can pay for the credit card on the basis of the feature.
It's a good feature and almost every bank offers this with some changes in the terms and conditions.
|Author: Kailash Kumar 17 Mar 2016 Member Level: Platinum Points : 2 (Rs 2) Voting Score: 0|
Saving bank account generally fetch an interest @ 4% only whereas the fixed deposits or term deposits can earn an interest up to 8.5% to 9.0 %. Banks provide 'sweep in' facility which is also known as 'flexi deposit', 'auto sweep' or 'hybrid scheme' in which money is not kept idle in savings account and is automatically transferred to the fixed deposit which fetches higher rate of interest. In case of requirement the account holder can withdraw money from his savings account and at that time the money kept in fixed deposit will be automatically transferred to the savings bank account.
|Author: Purna Prasad Sharma 17 Mar 2016 Member Level: Silver Points : 3 (Rs 3) Voting Score: 0|
The sweep in facility is one of the facility of saving plus account.Under such account the customer of the bank have to maintain a minimum balance of Rs 10000 and if the balance come down than that of minimum level, a bank charge levied on the account.
By this facility customer can earn higher rate of interest on saving account.The excess of minimum balance automatically convert into fixed deposit and higher rate of interest as like fixed deposit provides or credited to that account of the customer.Suppose a customer have a balance of Rs 22000 in his/her saving plus account where minimum balance is Rs 10000.Out of that Rs 22000 the sum of Rs 12000 (leaving Rs 10000 minimum balance) sweep from saving to fixed deposit.
In the same way when we withdraw that Rs 10000 of saving account, the another Rs 10000 of fixed deposit (which was Rs 12000) again sweep into the saving account and a sum of Rs 2000 remains on fixed deposit.
This conversion of fund is called sweep in facility.
|Author: Tara 30 Mar 2016 Member Level: Silver Points : 1 (Rs 1) Voting Score: 0|
Sweep in and Sweep out facility is provided to all customers in the bank basing on their request. Here the customer has to give an option how much funds he wants to transfer from his operative account to transfer the balance above the requirement to Fixed Deposit. When this option is enabled to the customer, once the balance reaches the expected amount the system automatically transfers the balance to Fixed Deposit as per the option given by the customer and subsequently the customer can take out the physical deposit receipt from the bank. In the same way, under seep out facility if it is enabled, when there is a shortfall in the account for some transaction, system automatically clears the Fixed Deposit and transfers the amount to the operative account.