Understanding the Auto-Sweep facility for Savings Accounts

Many of us desire to learn more about banking product investments, apart from buying shares, gold, debentures, or even property. Sometimes we get so engrossed in complicated and larger investments that we tend to ignore the convenient and safe options. We must learn to accept and appreciate traditional investments to grow our income safely since they do not get affected by market fluctuations.
We often accumulate a lot of money and generate higher Savings Account interest rates. For the account to work for you, you must roll the funds to generate more interest. The auto-sweep facility uses the amount lying idle in your account to generate better value. It is a combination of Savings and Fixed Deposit Accounts.
Overview of Auto-Sweeo Facility
With an Auto-Sweet Service, your Saving Account gets linked to an FD with a defined monetary limit. Whenever the account balance crosses the defined limit, the excess money gets transferred automatically to an FD Account to earn a higher interest rate than lying idle in a plain vanilla Saving Account.
How does it work?
You can define an upper limit for the amount you want to keep in the bank using the Banking app. Each account earns interest. However, transferring into an FD does not mean that the amount becomes illiquid. Whenever you require money higher than your threshold limit, the required amount gets transferred back to you from your FD Account.
Benefits
This facility offers ample liquidity while ensuring you earn a good return on your funds. You can link multiple deposits to the account for sweep-in to ensure you never have a liquidity crunch. It gives you the flexibility of a Bank Account and the lucrative interest of an FD. Salaried people who want to avoid investing a large amount in FDs can use this.
It is an ideal method of earning interest on surplus money without locking the funds in rigid financial instruments. Incorporating this service enables your account to earn a little extra. You enjoy the freedom of never running out of funds.
How do you avail it?
Firstly, link your account to the FD Account to earn the best Savings Account interest rates. Set a limit beyond which any excess in the account gets transferred automatically to the linked FD Account. Opt for any specific FD tenure option provided by the bank. For the Sweep-Out Facility, if there is a deficit in the Savings Account, it gets transferred from the linked FD to remedy the shortage. The amount earns higher interest as the FD rates are higher.
Final words
Instead of visiting the bank to enquire about the interest on the Saving Account, you can directly download the app and get all the information. Compare it with other banks to make an informed decision.