Stop letting idle funds languish at 2.7% savings rates. Learn how automated auto-sweep facilities earn fixed deposit returns while preserving instant ATM liquidity.
The Auto-Sweep Mechanism Explained
An auto-sweep facility links your standard savings account to a series of short-term fixed deposits. Whenever your balance exceeds a chosen threshold (e.g., ₹25,000), the surplus funds are automatically converted into an FD earning 6.5% to 7.5% annual interest. If you swipe your debit card or issue a cheque exceeding your liquid balance, the exact required sum is liquidated instantly without premature withdrawal penalty.