Take THESE Steps to Earn Up to 8% Interest on Your Savings Account | Check latest interest rate from banks – Many people prefer to invest their hard earned money in different investment schemes available in India as they offer high interest rates compared to low interest rates on standard savings accounts.
Lately, SIP (Systematic Investment Plan) has also gained popularity among mutual fund investors over the years.
However, few people prefer to keep their large sums of money in savings bank accounts due to low interest rates, as the money stays there with only 3-4% interest rate.
However, there are ways in which you can earn fixed deposit (FD) interest rates of up to 7-8% in your savings bank account. This extra money you can easily earn in your savings bank account, called Auto-Sweep feature.
What is an Auto Swipe Account?
1) An auto swipe is a bank facility with high interest rates.
2) A term account and a savings account are combined under this facility.
3) There is a limit threshold in the Auto Swipe Account above which money is automatically converted to Fixed Deposit (FD).
4) A banking feature called the auto-swipe feature helps individuals and businesses get the most out of their savings account balances.
State Bank of India Auto Swipe Account (Savings Plus Account)
State Bank of India provides auto swipe feature in Savings Plus account. An individual can easily convert an SBI Savings Bank Account to a Savings Plus Account either by visiting the originating branch or through an online method.
At State Bank of India (SBI), deposits are fully liquid and can be withdrawn in multiples of rupees. 1000, any number of times by check or ATMs. The duration of the deposits is from 1 to 5 years. For the auto-scan facility, the Minimum Threshold Balance and the Minimum Resultant Balance must be Rs 35,000/- and Rs. 25,000/- respectively.
State Bank of India Auto Swipe Account – Understand by Example
Ram has Rs 50,000 in his Savings Plus account at State Bank of India. It has set the threshold limit at Rs 25,000. Thus, the remaining money of Rs 25,000 will be converted into a fixed deposit (FD) with interest rates of up to 7%. While the balance of Rs 25,000 will earn a standard savings bank account interest rate of 3-4%.
You can withdraw or transfer this Auto Swipe money at any time. There is absolutely no lock-up period unlike any FD.
Why is Auto Sweep Facility the best option for savings bank account holders?
Higher interest rates – You earn higher interest rates with the auto-scan feature compared to standard savings bank accounts.
Flexibility – There is no blocking period in auto scan and you can easily withdraw, transfer money at any time.
Liquidity – This is called reverse swipe which is triggered when your savings bank account is out of balance so the money goes from FD to auto swipe account.
Read also | Canara Bank offers 7.5% on this FD | Checklist of Banks Offering an Interest Rate Above 7% on Term Deposits | Latest bank interest rate
Here is the list of banks offering an interest rate higher than 7% on term deposits
Canara Bank
The Bank offers a special fixed deposit scheme which offers an interest rate of 7.50% for a term of 666 days. The bank under the scheme offers an interest rate of 7% for general customers, while seniors will get 7.5% interest on this fixed deposit plan.
Utkarsh Small Finance Bank
The Bank offers a fixed deposit system which offers up to 8.50% interest rate for a term of 700 days.
RBL Bank
The Bank offers a fixed deposit system which offers up to 7.75% interest rate for a term of 725 days. The bank under the program offers an interest rate of 7.25% for general customers, while seniors will get 7.75% interest on this fixed deposit plan. This scheme is for the amount under Rs 2 crore.
Union Bank of India
Union Bank of India offers interest rates of up to 7% on FDs for a term of 599 days.
First IDFC Bank
For term deposits at 750 days, the bank offers 7.25% to general customers and 7.75% to seniors.
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