Sweep in FD: A Smart Way to Maximize Your Savings with 7.75% Interest Rate

In today’s economic scenario, many people want to keep their money safe and opening a savings account in a bank is a popular option. Most individuals open savings accounts not only to keep their money safe but also to avail various banking services available.

Reasons for Opening a Savings Account

There are several compelling reasons to consider a savings account. First, it provides a safe place to store your money and you can easily access your money when you need it. With the rise of digital banking, managing transactions is simpler than ever.

Interest rates at par with fixed deposits

Did you know that you can earn interest on your savings account just like Fixed Deposits (FDs)? Many banks now offer interest rates of up to 7.75% on savings accounts. Let’s know about this attractive option in detail.

Digital banking made easy

Digital banking has revolutionized the way we manage our financial affairs. With tools like debit cards, internet banking, digital wallets and UPI, making transactions is quick and hassle free. And whether you’re shopping online, paying medical bills or booking travel, these services promote seamless cashless transactions.

What is Sweep-in FD?

A valuable facility offered by banks is the Sweep-in FD. This service automatically transfers any excess funds from your savings account to a fixed deposit, giving you a better chance of earning FD-level interest on those funds. This is especially very beneficial for individuals who maintain a balance above a certain limit but want to maximize their earnings on the excess amount. You can specify how much money you want to keep in your savings account and the bank will take care of the rest.

Interest rates in banks
Many banks offer sweep-in FD facility, each with different interest rates:

• HDFC Bank: 4.50% to 7.25%
• Yes Bank: 4.75% to 7%
• Axis Bank: 5.75% to 7%
• ICICI Bank: 4.50% to 6.90%
• Canara Bank: 5.50% to 6.70%
• State Bank of India (SBI): 4.75% to 6.50%
• Bank of Baroda: 5.50% to 6.50%
• Punjab National Bank (PNB): 4.50% to 6.50%
• Indian Bank: 3.50% to 6.10%

These options allow you to convert excess money in your savings account into fixed deposits, thereby increasing your interest income.

Benefits for senior citizens
While banks offer special facilities to senior citizens and the above mentioned interest rates are applicable to general customers, senior citizens can get even higher rates, up to 7.75% on sweep-in FDs. It is advisable to contact your nearest bank branch.

In conclusion, opening a savings account and using features like sweep-in FD is a great way to protect and grow your wealth while enjoying the convenience of modern banking.