Fetch higher interest rate on your savings account
By Neelima Shankar
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Advantages and disadvantages of auto-sweep facility

The auto-sweep facility is best suited for salaried people who cannot afford to maintain huge amounts in the FDs and simultaneously want their unused funds to earn a higher rate of interest.

One of the disadvantages in the auto sweep facility, that is, some banks prefer to maintain the FD for some period of time, say 1 year and 1 day. In such a case, premature withdrawal of the FD amount would levy a penalty.

Another disadvantage with the facility is that in traditional FDs, banks calculate compound interest whereas in auto-sweep facility they might calculate only simple interest.

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(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)
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