Auto sweep accounts – importance , how to get FD interest rates from savings  accounts 

 

       Bank accounts are financial accounts maintained by a bank. We can maintain financial  transactions between the bank and customers. Each financial  institution sets the terms and conditions  for each type of account it provides. Accounts are different  types. They are deposit accounts, credit card accounts.loan accounts, etc.A customer  may have more than one account.  Once an account  is opened,funds entrusted by the customer  to the financial  institution on deposit are recorded  in the account designated by the customer. The financial  transactions which have occurred on a Bank account within a given period of time are reported to the customer  on a bank statement. Deposits of funds in a bank are not bailment.

      The actual funds deposited  by a customer cease to be property of the depositor and property  of the bank. Banks have different types of deposits  like transactional accounts( checking account, current  accounts),personal deposits and transactions  deposits. Banks have different  accounts  like current  accounts, savings accounts,salary accounts, fixed deposit  accounts, recurring  deposit  accounts, NRI accounts. Current accounts  are deposit  accounts for business  owners, traders,entrepreneurs  to make and receive  payments. Savings accounts  help consumers save their money. 

      Bank accounts  have a lot of benefits.  Money kept in a bank account is safe and well regulated. Certain Amount deposited in a bank account is automatically insured against loss by the government. Bank account provides you the option to withdraw an amount of money from a variety of locations using a debit card. Debit cards can be used to make a purchase or withdraw money from an ATM. Money deposited in a savings account earns  interest. Bank accounts are a great tool for managing personal finances. It helps to determine how and where you are spending your money.

     Personal savings accounts pay interest, which basically earn you free money. Bank accounts have a lot of advantages. You can earn interest from bank accounts. You will get insurance and you can easily access the money. You will get a debit card . you can directly deposit an  amount to the bank accounts.

     Fixed  deposit provides investors a  higher rate of interest than regular saving accounts. Fixed deposit is an investment offered by banks as well non banking financial companies to their customers to help them save money. In a fixed deposit account, you can deposit an amount of money at a predetermined rate of interest for a fixed period. It is a low risk financial instrument offered by a bank.you cannot withdraw money  immediately. 

      We can see how  to get double interest from savings accounts.  Most of the people  do not know about this facility.  You had more than one bank account. You will get 3.5 % interest in saving bank accounts.  Most of the people  maintain  an amount in their  savings bank account. We will get low interest from savings  bank accounts.

          We will get double interest from savings  accounts.  It is called auto sweep. Autosweep is a balance in excess of stipulated amount  which is transferred into a fixed deposit for 1 year. It will provide you a higher rate of return. These types of accounts  are useful ,if you have money at the end of month left over .you can earn better return from auto sweep. 

         If you have an auto sweep facility,  you will get the benefits  of a fixed deposit and savings  account.  It has a threshold value. You will get the interest  rate of fixed deposit for above the threshold limit of your account. Balance amount is considered  as a fixed deposit. You can withdraw money at any time from this account. You can again deposit this account. 

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