Sweep-In is an automated function in which any money over a certain limit is immediately converted into a fixed deposit. In the event of a lack of liquidity, the bank immediately liquidates the fixed deposit to cover the shortfall. Otherwise, the additional funds receive interest at the rates offered by the fixed deposits.
How it works
If a minimum balance of Rs. 10,000 is required, an automatic sweep can convert any amount greater than Rs. 20,000 into a fixed deposit. This money will earn a higher interest rate, which will be credited to your savings account. The bank will begin the transfer of the facility based on your standing instructions.
Bank accounts by demographics
Many banks offer special savings accounts for children, adolescents, the elderly and others. Savings accounts for seniors, savings accounts for children and savings accounts for young people are just a few examples of many types of savings accounts. These accounts pay a higher interest rate and offer additional benefits. If you have a child, you can set up a children’s savings account, deposit your funds, and get a better rate of return.
Go for a savings account with a set of requirements.
Check with your bank to see if certain types of savings accounts offer a better rate of return. A higher minimum amount, a certain number of debit card transactions, etc. are examples of specific requirements. If these conditions suit you, you can set up a large savings account.
A savings account is one of the safest ways to store money and earn a decent return on your investment every year. It is easy to optimize the interest rates on your savings account by optimizing a few tips and learnings. You can earn a higher rate of interest while enjoying the convenience of a savings account if you follow the aforementioned guidelines. As your income grows, your money stays liquid, so you can spend it virtually instantly.