Auto Sweep Service : When you go to the bank to open an account, you usually complete all the paperwork or online formalities and walk away with just a debit card — without really knowing what benefits come with your bank account. The bank doesn’t tell you much either. You keep depositing money in your savings or current account and feel satisfied earning an interest of 2.5% to 3%.
But do you know that you can actually earn three times more interest on the money deposited in your savings or current account? All it takes is saying one simple thing to your bank representative. Let’s find out how!
Auto Sweep Service : The Amazing Benefits of the Auto Sweep Service
Usually, banks offer 7–8% interest (sometimes even higher) to customers who make fixed deposits (FDs). On the other hand, the average interest rate on savings or current accounts remains around 2.5%.
However, with a bit of smartness, you can earn three times more or even FD-like interest on your regular account balance.
All you need to do is ask your bank to enable the Auto Sweep Service on your account.
How It Helps You Earn Higher Interest
Let’s understand how the Auto Sweep Service works and what benefits it offers.
This service helps account holders earn higher interest on surplus funds lying idle in their accounts.
When the Auto Sweep feature is activated on your savings or current account, it automatically transfers the extra balance — beyond a set limit — into a fixed deposit (FD). The transferred amount then earns FD-level interest rates, instead of the lower savings account interest rate.
Example:
Suppose you have set a sweep limit of ₹30,000 in your bank account, but your total balance is ₹90,000. In this case, the additional ₹60,000 (beyond the ₹30,000 limit) will automatically be converted into an FD. You’ll earn the same interest rate that the bank offers on fixed deposits for that ₹60,000, while the remaining ₹30,000 will continue earning the regular savings account interest.
No Hassle of Maturity Period
Another great thing about this service is that you can withdraw the swept-in funds anytime you want, unlike a traditional FD where you need to wait for the maturity period.
So, you enjoy FD-like interest without locking your money.
Additionally, because this service allows you to earn higher interest on the money sitting in your account, it encourages you to save more. You don’t have to manually transfer money into an FD every time — once the limit is set, the system automatically moves any excess balance into a fixed deposit.