Do THESE steps to earn upto 8% interest on your savings bank account | Check latest interest rate of banks – A lot of people prefer investing their hard-earned money in different investment schemes available in India because they provide high interest rates as compared to low interest on standard savings accounts.
Of late, SIP (Systematic investment plan) has also gained a lot of popularity among mutual fund investors over the years.
Although, not many people prefer keeping their large sums of money in savings bank accounts due to low interest rates as money keeps lying there with just 3-4 per cent interest rates.
However, there are ways through which you can earn Fixed-Deposit (FD) interest rates of up to 7-8 per cent on your savings bank account. This additional money you can earn easily in your savings bank account which is called Auto-Sweep facility.
What is an Auto-Sweep Account?
1) An auto-sweep is a banking facility with high interest rates.
2) A fixed deposit account and a savings account are combined under this facility.
3) There is a threshold limit in Auto-Sweep Account above which money is automatically converted to a Fixed-Deposit (FD).
4) A banking feature called the auto sweep facility helps both individuals and companies make the most of their savings account balances.
State Bank of India Auto-Sweep Account (Savings Plus Account)
State Bank of India provides Auto-Sweep facility in Savings Plus account. An individual can easily convert an SBI savings bank account to Savings Plus Account either by visiting home branch or through online method.
In State Bank of India (SBI), Deposits are completely liquid and can be withdrawn in multiples of Rs. 1000, any number of times through cheque or ATMs. The tenure of deposits is 1 to 5 years. For auto sweep facility, the Minimum Threshold Balance & Minimum Resultant Balance should be Rs 35,000/-and Rs. 25,000/- respectively.
State Bank of India Auto-Sweep Account – Understand by Example
Ram has Rs 50,000 in his Savings Plus Account in State Bank of India. He has set the threshold limit Rs to 25,000. So, the remaining Rs 25,000 money will be converted into a Fixed-Deposit (FD) with interest rates of upto 7 per cent. While the balance of Rs 25,000 will earn a standard savings bank account interest rate of 3-4 per cent.
You can withdraw or transfer this money from auto-sweep at any time. There is absolutely no lock-in period unlike any FD.
Why is Auto Sweep Facility the best option to savings bank account holders?
Higher Interest rates – You are earning higher interest rates with auto-sweep facility as compared to standard savings bank accounts.
Flexibility – There is no lock-in period in auto sweep and you can easily withdraw, transfer money at any time.
Liquidity – This is called reverse sweep which triggers when your savings bank account falls short of balance so the money gets reverse sweep from FD to auto sweep account.
Here’s list of banks offering over 7% interest rate on fixed deposits
Canara Bank
The Bank offers a special fixed deposit scheme that provides a 7.50% interest rate for a tenure of 666 days. The bank under the scheme is offering a 7% interest rate for general customers, whereas senior citizens will get a 7.5% interest on this fixed deposit plan.
Utkarsh Small Finance Bank
The Bank offers a fixed deposit scheme that provides up to 8.50 percent interest rate for a tenure of 700 days.
RBL Bank
The Bank offers a fixed deposit scheme that provides upto 7.75 per cent interest rate for a tenure of 725 days. The bank under the scheme is offering a 7.25 per cent interest rate for general customers, whereas senior citizens will get 7.75 per cent interest on this fixed deposit plan. This scheme is for the amount under Rs 2 crore.
Union Bank of India
Union Bank of India offers interest rates ranging upto 7 per cent on FDs for a tenure of 599 days.
IDFC First Bank
For 750-day fixed deposits, the bank offers 7.25 per cent to general customers and 7.75 per cent to senior citizens.
