How to activate Auto Sweep Facility in your Savings Account
What is Auto Sweep Facility ?
Auto Sweep Facility, also known as a sweep-in or sweep-out facility. This is a banking service that automatically transfers funds between a savings account and a investment account. Here Investment Account refers to Fixed Deposit or Mutual Fund Account.
This benefit is availed only when a customer’s savings account balance crosses a certain threshold . Where excess funds are automatically transferred to a linked investment account. Then customers can earn high rate of interest on their savings account. It helps the customer to optimize their returns by utilizing idle funds effectively.
Conversely, when the savings account balance falls below that specified threshold, the customer no longer gets this benefit. The facility is automatically withdrawn if the savings account falls below the required minimum balance. This ensures that the customer always has sufficient funds in their savings account for regular transactions and withdrawals.
In summary, the auto sweep facility allows customers to maximize their earnings by automatically moving surplus funds to higher-yielding investments while maintaining a minimum balance in their savings account. And How to activate Auto Sweep Facility in your Savings Account is discussed in detail below..
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Auto Sweep Facility Activation Process
How to activate Auto Sweep Facility in your Savings Account may vary depending on the specific bank you are dealing with. However, I can provide you with a general overview of how the activation process typically works. Here are the steps you may need to follow:
- Contact Your Bank:
Get in touch with your bank’s customer service department through phone, email, or by visiting a branch. Inquire about the Auto Sweep facility and express your interest in activating it for your account.
- Provide Necessary Information:
The bank representative will likely ask you to provide some information to initiate the activation process. This may include your account details, customer identification number etc documents.
- Known Your Sweep Limit:
The sweep limit refers to the threshold balance amount, which vary from bank to bank. The excess funds in your account will be automatically swept into a fixed deposit.
- Sign Necessary Documents:
Once you have agreed to the terms and conditions, you’ll be required to sign the relevant documents. This may include an Auto Sweep activation form or a modification request form for your existing account.
- Wait For Activation:
After submitting the required documents, the bank will process your request. The time it takes to activate the Auto Sweep facility may vary. You can also inquire about the expected timeline from the bank representative.
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Auto Sweep Facility Banks List
Minimum limit for auto sweep facility, also known as minimum threshold balance. This minimum threshold balance may vary from bank to bank. Different banks have their own policies and requirements regarding the minimum limit for activating the Auto Sweep facility. Here is the list of some prominent banks in India and their minimum limit for auto sweep facility in March 2023:
| SL No. | Name of The Bank | Minimum Threshold Balance ( in ₹ ) | More Info |
|---|---|---|---|
| 1. | State Bank of India | 25,000 | Click Here |
| 2. | ICICI Bank | 10,000 | Click Here |
| 3. | HDFC Bank | 25,000 | Click Here |
| 4. | Axis Bank | 10,000 | Click Here |
| 5. | Bank of Baroda | 25,000 | Click Here |
| 6. | Punjab National Bank | 10,000 | Click Here |
| 7. | Union Bank of India | 25,000 | Click Here |
| 8. | Canara Bank | 10,000 | Click Here |
| 9. | IDBI Bank | 25,000 | Click Here |
| 10. | Kotak Mahindra Bank | 25,000 | Click Here |
There are other banks and financial institutions in India that offer auto sweep facility. So if you’re interested in activating the facility with another bank, it’s worth exploring options beyond this list.
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QUESTION:
To activate Auto Sweep facility in SBI Online, follow the below mentioned steps sequentially:
Step-1: Log in to SBI Online Banking.
Step-2: Access the e-services section.
Step-3: Locate the Auto Sweep Facility option.
Step-4: Read and accept the terms and conditions.
Step-5: Specify the sweep limit.
Step-6: Confirm and activate.
Step-7: Wait for activation and confirmation.
