[www.keralites.net] Sweep- In-Fixed Deposit

 

Sweep- In-Fixed Deposit

When you earn enough to be able to save something at the end of every month, you would like to invest them in an avenue that gives you the flexibility to access your savings during contingencies and yet give handsome returns when it is idle in your bank account. Typically any bank gives a mere 4.00 per cent interest per annum on savings account. And if the money is put into a fixed deposit account it is not at your disposal. So what you need is an amalgamation of the features of a savings-current account and a fixed deposit account.

 

We are all familiar with bank fixed deposits otherwise called Term Deposits. This type deposits provides us higher rate of returns when compared to the traditional savings bank account However fixed deposits take away the flexibility of ready cash at disposal, which we many a times need to meet our unplanned expenses or contingencies.  In such situations, Sweep in fixed deposits come to our rescue.

 

"Auto Sweep" is a facility which provides the combined benefits of a Savings Bank account and Fixed Deposit.  Auto-Sweep facility interlinks your saving bank account with a deposit account and makes sure any extra amount lying in your bank account above a threshold limit is automatically transferred to fixed deposits and you earn better interest on your money.

A sweep in facility is quite similar to a fixed deposit.  One has to specify the amount he wants to keep in this fixed deposit, thereby earning you higher interest rates.  In case you require money, you can withdraw it like you do from a normal savings bank account.

The difference between fixed deposit & sweep in fixed deposit

Here is an example of how sweep in fixed deposit works:

Suppose you have Rs 1,00,000 in  your  bank account out of which Rs 80,000 is in a sweep-in- fixed deposit and remaining Rs 20,000 is in your saving account. Do to some emergency you wanted to withdraw Rs 30,000 from your account. In this case you don't need to break your fixed deposits. Out of Rs 30,000 you wish to withdraw, Rs 20,000 will be deducted from your Savings account, remaining Rs 10,000 would be withdrawn from your Sweep in account, and you would continue to earn interest on the remaining Rs 70,000 in your Sweep in fixed deposit.

For availing the facility of Sweep-in benefits, you need to specify an amount above which the money is moved to a fixed deposit. In case you need money, it is transferred from sweep in deposit to your savings account automatically. This will make sure you earn good interest on the cash lying idle in your Savings account.

Example

Mr. X open a new Savings Bank account with  ABC Bank Ltd, he enables Auto-Sweep facility on his savings bank account and defines the threshold limit as Rs 40,000 and present balance in his account is only  Rs 10,000, that earns interest @ 4.00%.  After some times he deposited Rs. 70,000.00 in his account, now the balance in his account is Rs. 80,000.00.  Mr. X fixed the threshold limit as Rs. 40,000.00, the extra amount of Rs.  40,000.00 will be automatically converted as fixed deposit and starts earning a good interest.

There are various modifications to a sweep-in account catering to different customers in different situation, so please contact your bank for more details related to interest and other terms and conditions.

Best Regards

 

Prakash Nair 

---

www.keralites.net

__._,_.___

Reply to sender | Reply to group | Reply via web post | Start a New Topic

Messages in this topic (1)

Recent Activity:

• New Members 311

Visit Your Group

KERALITES - A moderated eGroup exclusively for Keralites...
To subscribe send a mail to Keralites-subscribe@yahoogroups.com.
Send your posts to Keralites@yahoogroups.com.
Send your suggestions to Keralites-owner@yahoogroups.com.

To unsubscribe send a mail to Keralites-unsubscribe@yahoogroups.com.

Homepage: www.keralites.net

MARKETPLACE

A bad score is 579. A good idea is checking yours at freecreditscore.com.

Switch to: Text-Only, Daily Digest • Unsubscribe • Terms of Use

.

__,_._,___