Fetch higher interest rate on your savings account
By Neelima Shankar
Print    Email    RSS   

One of the most common types of accounts is a savings account. It keeps your money safe and earns a small amount of interest-around 3.5 percent. A savings account carries high liquidity. You can use the account for your day-to-day transactions like paying bills, EMIs etc.

Fixed deposit is another safe option to park your money. It scores better than a savings account in respect of interest rate, around 8 percent, but does not provide enough liquidity. In an FD, your money is locked for a particular period of time and you cannot have access to it during that period.

How about a facility that combines both the benefit; the liquidity offered in a savings account and the interest rate in case of a fixed deposit? Auto-sweep facility provides you benefits of both.

What is an auto sweep facility?

Auto-sweep facility, also known as flexi-deposit scheme, enables you to fix a pre-determined amount for your savings account the excess of which will be automatically transferred to a fixed deposit.

This fetches you a higher rate of interest on the transferred amount. These FDs are liquid since they are fragmented and operate like normal savings bank accounts. Some banks also allow the transfer of excess money to some mutual fund scheme or money markets.

Page  | 123 |  
(Comments Posted : 1) Post Your Comments
1. I have an SB MOD account where I'm getting 9.25% for my saving account.

I would recommend you all to go for it.
AJ (Posted: Dec 16, 2011)
Show All Comments
 Select a product:

 Select a product:

Carnival of Indian Personal Finance Blogs...
ICICI Bank’s recurring deposit scheme
Know all about non-bank fixed deposits
Investment options to Save Tax under...
The recent interest rate hike

MEXING: CaℒL Giℛℒ In Hoshiarpur 09855660911...
Sakeela.CaℒL Giℛℒs In Kharar 0985566O911...
NANGAL: CaℒL Giℛℒ In Una 09855660911 Escoℛt...

Federal Bank launched V connect for its customers Feb 12, 2015
Andhra Bank on expansion mode Feb 11, 2015
Dena Bank earned a profit of 13%. Feb 9, 2015
Banks expected to cut down the rates Feb 5, 2015
RBI kept the rates unchanged Feb 4, 2015
News Archive