Savings Account Tips: You can take FD interest on a savings account, know the method..
In today's time, almost every person has a bank account. There are many people who have more than one bank account. These bank accounts are called Savings Bank Accounts. In these, people keep their money safe, on which they also get 2-3 percent interest from the bank. You must be hearing that the interest is so low, that even 6-7 percent interest is available on FD. Now the question is how to put money in FD, how to withdraw it suddenly when needed? If you also think so, then you can opt for Sweep-in FD. Under this, you will get the benefit of FD in your savings account only. Let us know everything about it.
What is sweep-in-FD?
Sweep-in-FD is an auto-sweep service. Under this, whatever extra money there is in your savings account is transferred to FD. FD linked to savings account is for 1-5 years. Now the question arises of when will the extra money be considered in the account and when will the money be transferred. For this, you will first have to set a threshold limit.
Know what is sweep threshold limit
Although the bank itself decides the sweep threshold limit, it also gives the account holder the option to customize it as per the need. This is the limit beyond which money will automatically be transferred to the FD account. In this way, you will start getting FD interest on your savings account only.
Minimum FD amount
In sweep-in-FD, the bank also fixes a minimum FD amount. Unless the amount exceeds the threshold limit, the money will not be transferred. That is, if your threshold limit is Rs 25 thousand and the minimum FD amount is Rs 5 thousand, then Rs 5 thousand will be transferred to FD only if there is Rs 30 thousand in the bank account.
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