What is an Auto Sweep facility in Banking? How to activate the auto sweep facility in SBI online and other banks?

Auto Sweep is a banking facility that most people do not know about. It has the dual benefit of savings as well as a fixed deposit account. With the Auto Sweep facility active on your account it worked as both a savings and a fixed account.

What is an Auto Sweep Facility?

In the Auto Sweep facility, you can use your account as a normal savings account but you got an FD rate on the amount that you maintain in your savings account. You can use your extra amount in a savings account to gain high rate than a normal account plus you can withdraw money whenever you required it.

It is a combination of a Savings and Fixed Deposit bank account. You can use both accounts at the same time. You can define an upper limit for your account known as the threshold limit. Every time money in your account crosses that limit will be transferred to your fixed deposit account which is in technical terms called sweep in. Transferring the amount to a savings account does not mean that your amount is locked in, you can withdraw it anytime you required it. But generally, it is advised not to make frequent transactions in your auto sweep account to get the maximum advantage.

Let us understand by an example, you have a bank account upon which you set your threshold limit to 15,000rs. Now you have a balance in your account of 25,000rs at that time then an extra 10,000rs will be transferred to your FD account. Whenever you have a balance less than the threshold limit and want to withdraw more money than the threshold limit then you can take the required money from your FD account and this in technical terms is called sweep out.

How to activate the auto sweep facility to your SBI account?

Internet Banking

1. Log in to your internet banking on Onlinesbi.com.
2. Then go to the fixed deposit option in the menu.
3. Click on more from the drop-down menu.
4. Now a new menu opens then click on auto sweep facility.
5. Select the account on which you want to activate the sweep facility. Enter the threshold amount, resultant amount, and duration of the deposit.
6. After filling in all the details click on submit button.
7. Now you have to enter the one-time password and once done the auto sweep facility will be activated in a few days.

Yono Application

1. First, open the mobile application.
2. Then click on the e-fixed deposit option.
3. Now click on Multi option deposit.
4. Select the account on which you want to activate the sweep facility. Enter the threshold amount, resultant amount, and duration of the deposit.
5. Click on the ok or submit option.
6. Enter the one-time password and within a few days multi-option deposit(auto sweep) facility.

To enable it in offline mode contact the branch office.

Note: If your account is not shown in this facility then you are not eligible for this option or contact to the branch office.

Other Banks

The procedure is the same for all banks but terms and conditions may be different for private banks. It can be enabled with internet banking or you can contact the branch office.

To know more information comment below.

Thanks

Vinay Garg