If balance of saving account becomes low and there is a need then Fixed Deposit will be broken and the amount will be moved back to Saving Account.
For people who keep money in saving bank account one of the product suggested is Auto Sweep Bank Account.
So, Syndicate Bank calls carrentals com promo code it the premium savings account, at hdfc Bank, los cazadores deer contest 2015 its called the sweep-in facility, while at Standard Chartered Bank its the 2-in-1 account.
For., icici Bank calls it Auto Sweep, hdfc Bank calls it Sweep-In account, and SBI calls it Multi Option Deposit Scheme.
So, the total interest earned would ultimately be much lower than if you had kept the money in just the savings account, as shown in the image below.Balance in Saving Bank account is Rs 20,000.How do the Auto Sweep account of different banks differ.Most of the Banks offer interest at the rate of.a.
Take, for instance, SBIs Savings Plus Account, where the accountholder can choose the tenure of the deposit from one year to five years.
This is an innovative deposit option that allows you the convenience of a bank account without compromising on the interest that your money earns compared with a long-term investment vehicle like a fixed deposit (FD).
Bank deducts some penalty from the interest or seizes the interest totally.
If your 25 days FD interest rate was.5, postpenalty, you may get only.5.
Auto Sweep In Unit : Multiples by which FD will get broken : Some banks break FD in multiple of 1000 some to nearest rupee. .We do not levy any penalty as of now, says Kapoor of Kotak Mahindra Bank.Sweep accounts were needed historically as federal banking regulations prohibited interest on checking accounts.The money can be swept in whenever there is a shortfall in the savings account.Every bank autosweeps in FDs with a certain maturity limit, say one year.If you have income of above 10 lakh you fall in 30 tax bracket.5,000 threshold limit of Rs 40,000 and interest on saving bank account.Not only can you withdraw the exact amount that you needin case of an overdraft, there is a minimum amount stipulation which may be far more than the money you needbut you can make up for the interest you lose by making further deposits.