Sweep-in-Account!

There are some cardinal rules to park your idle money. Your primary target is to beat inflation, which is well above your savings interest rates. Secondly, you must have a certain idea about your short-term liquidity requirements. And thirdly is the safety of the capital, you don’t want to run after very high returns by putting the entire capital at risk. One solution is having a sweep-in-account. An auto sweep feature allows a savings account holder to earn the higher interest that FDs offer while enjoying the liquidity of a saving account. This is how it works; when the balance in the savings or current account crosses a preset threshold, the excess is automatically used to open an FD of a predetermined tenure. Similarly, when the savings account balance falls below a predetermined limit, the linked FD(s) are automatically closed and the proceeds credited to the savings account to make up the deficit. The threshold for a sweepout varies. The tenure of FDs and interest rates also varies with each bank.