Auto-sweep feature!

In the previous feed we were talking about not keeping excess amount in savings account. However, to beat or match inflation you can register for an auto-sweep feature with your bank, which gives customers the benefit of FD-like interest of up to 7 percent per annum, and the flexibility to access your funds at any time from the linked savings account. This auto-sweep feature is offered by several banks, including Axis Bank, HDFC Bank, ICICI Bank, IndusInd Bank and Kotak Mahindra Bank. Sweep-in accounts are a good middle-ground, automating excess balance transfer to short-term FDs. But for long-term needs it is advisable to invest in equity through direct or mutual funds route.