Auto sweep facility in SBI
In the last two decades, retail banking inIndiahas undergone a radical change. The change is very much perceptible from operations to products. One such change is the introduction of auto sweep facility in many banks. This is a good option by which you can earn some extra amount from your idle money in your savings bank account. Most of us have some extra amount lying idle in our savings account. Now with the introduction of this facility, it is possible to earn some extra amount from that money.
Now days, almost every commercial bank offers this auto sweep facility. This is a combination of a savings account and a fixed deposit. People, who opt for this option gets two accounts, a savings and a fixed deposit account, which are interlinked. However, the customer must know that the name of this scheme is different for each bank. It is known as ‘Encash 24’ in Axis Bank, ‘Super Saver Facility’ in HDFC bank, and ‘Multi Option Deposit Scheme’ in State Bank of India and so on. Although, the basic features remain the same, there are slight differences in the different banks, depending upon the minimum amount and threshold amount.
Auto sweep facility in SBI: Multi Option Deposit Scheme
The Multi Option Deposit Scheme has been a popular choice for account holders in State Bank of India. It enables people to earn a higher rate of interest on his or her deposit. When needed, one can withdraw from their deposit account in units of Rs.1000/- by means of a cheque. State Bank of India allows flexibility in the period of term deposit from one to five years. The minimum amount needed to open a Multi Option Deposit Scheme in SBI is Rs.10, 000/- only. This service is available in all branches of SBI.
The Multi Option Deposit Scheme at the State Bank of India offers nomination facility as well. However, before opening an account, one must read carefully the rules and regulations of tax implications, premature withdrawal, automatic renewal, and other related information.
Auto sweep facility in SBI: Advantages
Auto sweep facility is something, which every account holder should opt for because of it advantages. Many account holders of SBI have opted for this facility as one can earn a good amount on the idle money in the account. This option is particularly good for salaried people, who do less transaction. In SBI, the advantage is more, as the minimum amount is Rs.10, 000/- and hence, more account holders these days are going for the Multi Option Deposit Scheme. If you think that your case is the same, if you have money lying idle in your bank account, and if you want to earn from that idle account, then opt for this auto sweep facility and get good returns.