How does Sweep-In Sweep-Out Account work?
Sweep in Sweep out Facility can be offered under your savings and Current account in Which Banks set minimum amount (10000 to 25000) which earn Current Fixed Deposit Rate instead of 4% interest means savings account interest. Amount over the threshold limit means minimum amount will automatically convert into small fixed deposits in multiple of 1000 or 5000 depending on the bank.
Whenever you withdraw amount by ATM or Cheque as regular transactions more than the minimum amount (threshold limit) set by the bank, your fixed deposits will automatically be liquidated. It will be liquidated on the base of First-In-First-Out or Last-In-Last-Out manner.
Many banks offer auto sweep saving accounts with different names.
Auto Sweep-In / Sweep-Out Saving Account
Sweep-in Sweep out account is savings account which gives extra benefit of fixed deposit. Banks offer auto sweep saving accounts with different names.
- SBI Saving Plus Account.
- BOB Super Savings Account
- Axis Bank Encash 24 Flexi Deposit.
- HDFC SavingsMax Account.
- PNB Prudent Facility.
- Allahabad Bank Flexi-fix Deposit.
- ICICI Bank Money Multiplier.
- Oriental Bank of Commerce – Flexi Fixed Deposit.
- UNION FLEXI SAVINGS DEPOSIT.
Facilities and terms in Sweep in Sweep out Accounts offered by some of the banks are
SBI Bank offers this facility under SBI Saving Plus Account name. This Account is Linked to MOD (Multi Option Deposit Scheme)
Savings Plus Account is a Savings Bank Account linked to MODS, wherein surplus fund above a threshold limit from the Savings Bank Account is transferred automatically to Term Deposits opened in multiples of Rs. 1000.
For more detail Click Here>>>SBI Saving Plus Account
Earn more with a linked Savings Account and Fixed Deposit
Fixed Deposit is linked to an existing Savings Account which facilitates automatic transfers in multiples of Rs. 5,000 to a fixed deposit when the balance in the Savings Account crosses Rs. 25,000
Benefit with a short minimum tenure 6 months only. Enjoy maximum liquidity
For more detail Click Here>>> Axis Bank Encash 24 Flexi Deposit
MoneyMaximizer Make the most of our “MoneyMaximizer” (sweep-out) facility so your surplus funds can be put into high earning fixed deposit at the threshold of Rs. 1,25,000. If the balance in your SavingsMax Account exceeds/reaches Rs. 1,25,000, the amount in excess of Rs. 1,00,000 will be put in a fixed deposit at a minimum value of Rs. 25,000 for a one year and one-day period.
For more detail Click Here>>> HDFC SavingsMax Account
- Eligibility Only individuals
Initial Deposit: Rs. 500/-
- Minimum Quarterly Average Balance: Rs. 5000/- for Rural/Semi-Urban & Rs.10000/- for Urban/Metro areas.
- Incidental Charges:150/- per quarter for not maintaining stipulated QAB for Rural/Semi-Urban areas and Rs.300/- for Urban/Metro areas.
SWEEP IN AND OUT:
Sweep in/out shall take place after the cut off balance of Rs.1.00 lac and in multiples of Rs.10,000/-. Sweep out will be on 5th, 15th and 25th of every month (If there is a holiday on these days, sweep out will be on the next working day from saving account).
7 days to one year at the option of the customer
The funds will be swept in i.e. cancellation of Fixed Deposit, in case of need on Last In First Out Basis (LIFO).
For other details, please visit any of our branches.
Various Free Facilities:
2 remittances & collection of cheques (any) up to Rs 25000/- in a month,100 cheque leaves in an F.Y. , internet banking services (IBS,50% concession on annual maintenance charges for demat services for the first year only, ATM card facility (AMC payable) etc.
The scheme gives maximum return without sacrificing the liquidity
Salient features and Rules of the Scheme are as follows:
- It is a running account consisting of multiple units of simple or compound interest fetching Term Deposit Accounts like normal Fixed Deposit or Double Deposit Plan respectively.
- No Term Deposit Receipt will be issued for the deposits. Instead, a specially designed pass book will be issued to the depositor, in which all the particulars regarding deposits, withdrawals, interest credit/ debit are recorded. However, the account under the scheme will be linked to a base account, which may be a Savings Bank or Current Account. For payment of interest or the maturity amount of a unit or at the time of premature withdrawal of a unit, as the case may be, the proceed thereof, net of TDS, as and where applicable, will be automatically swept to the base account for making the funds available at the disposal of the depositor/s.
- Under the scheme, a depositor is required to make an initial deposit of Rs.25,000/- or more in multiples of Rs.5,000/- as Fixed Deposit/ Double Deposit Plan for a fixed period of one year. Thereafter, the depositor can make any number of deposits in multiples of Rs.5,000/- each at any time in the account for a period of one year. Every Rs.5,000/- in the account will be treated as a separate unit of deposit.
- The depositor will be required to maintain a minimum principal outstanding of Rs.25,000/- i.e. 5 units of Rs.5,000/- each at all points of time. In case of fall in principal outstanding in the account below Rs.25000/-, the facility of further deposit of units in the account will stand withdrawn.
- The depositor is free to withdraw any amount of the principal in multiples of Rs.5,000/- at any time before maturity without affecting the remaining units of deposit. However, the depositor will be required to maintain a minimum principal outstanding of Rs.25,000/- i.e. 5 units of Rs.5,000/- each at all points of time, as stated hereinabove.There will be no penalty for the prematurely withdrawn units
- The rate of interest for the units will be the rate prevailing on the date of deposit of the individual unit/s for the period of one year. In case of premature withdrawal of a unit, interest due, if any, will be paid net of TDS, as and where applicable, at the rate prevailing on the date of deposit of the unit for the period for which the deposit remained with the Bank No interest will be paid for premature withdrawal of a unit if the deposit remains with the Bank for a period less than 15 days. The balance units remaining in the account will continue to earn interest at the contracted rates for the individual units.
- Usual account opening procedures and formalities including observance of KYC and AML guidelines will be followed. In addition, a special letter for the opening account under the scheme will be obtained from the depositor/s.
- No loan will be allowed against this deposit.
7. ICICI Bank Money Multiplier
The Money Multiplier feature gives you the liquidity of a Savings Account coupled with high earnings of a Fixed Deposit. This is achieved by creating a Fixed Deposit linked to your Savings Account providing you the following unique facilities.
Your money is never idle. Creation of a linked FD ensures the higher rate of interest on your Savings Bank Deposits. You can issue instructions through any channel such as the ICICI Bank Branch, ICICI Bank Phone Banking, and ICICI Bank’s Internet Banking for the creation of Fixed Deposit(s) from the surplus funds in your Savings Bank Account (subject to a minimum of Rs. 10,000). The Fixed Deposits will be created in multiples of Rs. 5,000 for a tenure of one year or more as instructed by you.
You can withdraw the funds from your savings account through any channel such as the ICICI Bank ATM, ICICI Bank Internet Banking or by issuing a cheque. etc. All linked Fixed Deposits will be enabled for automatic Reverse Sweep in multiples of Rs. 5000 on a Last-In-First-Out (LIFO) basis when the balance in the Savings Account falls below Rs.10,000. The amount reverse swept will earn interest rates at the applicable rate for the period that the deposit was held with the bank less applicable premature withdrawal penalty. The remaining amount will continue to earn higher interest at the original rate applicable to the fixed deposit.
Under this facility, when your deposits fall due, the bank will automatically renew the principal and accrued interest for the same tenure as the original deposit.
PRODUCT & BENEFIT:
Flexi Fixed Deposit products offer liquidity in the shape of Savings / Current deposit funds as well as higher returns as are available on fixed deposit funds. Moreover, there is also an element of flexibility as the depositor can meet funds requirement without losing the interest since the transfer of funds to Savings / Current account is made available as an inbuilt arrangement whenever required by the depositor. In nutshell, the scheme enables a depositor to get returns on his/her funds as a fixed deposit but at the same time retaining the character of liquidity which is available in Savings Banks/Current Account.
The Scheme is made available at all CBS branches and customer will have to fulfill following conditions:
- Customer will have to open an operative Account (Savings or Current) under the Scheme (Flexi Fixed Deposit), if not maintaining one already. The Account Opening Form (AOF) shall continue to be the same as required for SB / CA. While obtaining Account Opening Form, the type of account will be marked as “FLEXI FIXED” on the AOF itself. The customer shall not be required to undergo formalities of getting issued separately fixed deposit receipts, whenever the funds are transferred from the Savings bank / Current account under the Auto Sweep.
- In addition to the Account Opening Form, a Letter of Undertaking (Annexure II) and acknowledgment for Rules & Regulations (Annexure III) for carrying out the request for the fixed component of Amount and its Periodicity will be obtained from the customer (Proforma enclosed).
- Resident Indian customers shall be eligible to open accounts under the scheme provided they maintain such account in Savings Bank/Current Account under the specific category as detailed in Annexure I.
- Flexi Fixed Deposit accounts shall be opened either singly or jointly.
- To avail Flexi Fixed Deposit products, Staff, Ex-staff, Pensioners and Senior Citizens will have to maintain accounts under this scheme. However, concession in minimum balance requirement and penalty thereon for not maintaining minimum balance will not be available to these categories.
MINIMUM AMOUNT OF DEPOSIT:
In case of new accounts, the initial deposit, as per the respective category under which the account is proposed to be opened, shall be the pre-requisite. In case of non-maintenance of minimum Average Quarterly Balance (as per Annexure I), penalty, as specified against each category of Savings / Current account, shall be levied in the account.
PERIOD OF DEPOSIT:
A deposit under the scheme shall be accepted as per below chart
|S.No||Scheme||Proposed Flexi Period|
|1||Current Account Premium Gold(CA-109)||45 days to 1 year Default period 45 days||46 days to 90 days Default period 46 days|
91 days to 179 days Default period 91 days
|2||Saving Smart Save (SB-211)||91 days to 59 Months Default period 91 days||91 days to 179 days Default period 91 days|
PAYMENT OF INTEREST:
The amount invested in the scheme shall attract a rate of interest prescribed by the Bank on domestic Term Deposits from time to time. Simple/ compounded interest shall be booked on the quarterly basis but the liquidation of interest will be as applicable for the respective scheme.
Staff / Ex-Staff and Senior Citizens will be entitled to additional rates in Flexi Fixed Deposits as applicable in Domestic Term Deposits (as applicable to the category of depositor).
As per the extant rules, premature payment penalty has been levied on amount more than 15 lacs for an individual (1%) and for non-individual, irrespective of an amount on or after 10.07.2015.
AUTO SWEEP (SWEEP – IN):
When the balance amount in FFD linked Savings Bank / Current account shall cross over the minimum balance, the excess, in multiple as applicable for different categories as per enclosed Annexure I, will be transferred automatically to Flexi Fixed Deposit account, for the time period as mandated by the depositor at the time of opening of account under the scheme.
REVERSE SWEEP (SWEEP OUT):
Through reverse sweep facility, the amount lying in Flexi Fixed Deposit shall be available to the depositor whenever there is a requirement of funds in his / her / their operative account i.e. savings / current account. As such, whenever the depositor issues a cheque or uses ATM card and the available balance in his/her connected Savings/Current Account is not sufficient, Reverse Sweep will automatically withdraw the required amount from Flexi Fixed Deposit account and the remaining amount in FFD will continue to earn the same rate of interest, as agreed upon in the contract. In such event, the amount of flexi fixed deposit shall be transferred to his / her / their savings / current account by following the LIFO (last in first out) method.
However, the funds to be transferred as a reverse sweep to Savings Bank/Current Account will also meet the requirement of maintaining a minimum balance.
ISSUANCE OF PASS SHEET (STATEMENT) IN LIEU OF DEPOSIT RECEIPTS:
In lieu of the regular Term Deposit Receipt, the Flexi Fixed deposit Pass Sheet shall be made available to the customers maintaining the account under the scheme. A well-established arrangement is already in place for generation and dispatch of this statement to the customers. COPEC Secunderabad will issue pass sheet to the customers of all the branches of the Bank who maintain an account under this flexi deposit scheme.
RESTRICTION ON LOAN:
No loan / OD in any shape shall be allowed against deposit held in Flexi Fixed Deposit Scheme.
o SB Smart Save modified as follows:
- Average quarterly balance to be increased to Rs25,000/
- RTGS/NEFT to be allowed at 50% concession.
- Speed Clearing with no charges ( Charges by Clearing House to be collected)
- Free ECS debit and Credit
- Instant credit of outstation cheques up to Rs25,000.
- At Par collection of Government Cheques.
- Free SMS facility
- Free cheque books (100 leaves p.a.)
- Minimum sweep out amount to be raised from Rs 1,000/ to Rs2,000/
- Sweep in amount is fixed at Rs.5,000/-
o Current Account Premium Gold
- Threshold for transfer to Term Deposit from Current deposit is Rs 2,00.000/
- Average Quarterly Credit Balance increased to Rs.2,00,000/-
- No Charges for Personalized Cheque Books
- NEFT/RTGS 50% concession
- Free SMS facility
This deposit scheme has integrated features of the Savings Deposit and Fixed Deposit, namely liquidity with higher interest returns on surplus funds. The details of the scheme are as under:
Rate of Interest
As applicable to Savings Bank Deposit and Fixed Deposit in force from time to time. Interest will be paid on a quarterly basis on the Fixed Deposit and credited into Savings Flexi deposit account
Union Flexi Savings Deposit Scheme (SBNFD)
- Eligibility Individuals, Non-Govt. Bodies / Organizations / Agencies who are eligible to open Savings Bank account. (except Corporates & Govt. agencies/corporations)
- Minimum Balance in SB Rs.50,000/=
Sweep Out amount Rs.10,000/= and in multiples of Rs.10,000/- up to Rs. 1.00 Crore per day per customer
The periodicity of Sweep out Daily. Sweep in amount Rs.5,000/= and in multiples of Rs.5,000/=
Period of Term Deposit 46 days to 1 year
- 5 cheque books of 20 leave each per FY.
- No NEFT/RTGS charges.
- No Minimum Balance Charges.
- A Passbook will be issued to the depositor with all the details of SB Flexi Account, the linked FD Flexi Account, TDS adjustment if any etc
- No separate Deposit Receipt shall be issued by the Bank for the Union Flexi Deposit Scheme
- Nomination facility available.
- TDS is applicable on the deposits in the linked FD Flexi Account
- No loan/overdraft/lien will be permitted against the linked FD Flexi Account under this Scheme
For more information contact our nearest Branch or Call Centre now.
Also, there is UNION FLEXI PLUS SAVINGS DEPOSIT ACCOUNT WHICH REQUIRES MINIMUM BALANCE 100000 IN SAVINGS ACCOUNT.
Resource of this post is Respective Banks Website.