Sweep transfer sbi
Now suppose he has Rs spongebob christmas gifts 10,000 lying in the bank, He will be earning normal 3-3.5 interest on this money.
Example, ajay opens a new Savings Bank account with SBI.
If you are sitting on idle cash reservessay, you are looking for investment options a few months down the linea sweep account can help you manage money more efficiently."If you make withdrawals frequently from the FD, you will lose out on interest, no matter how much you put into the account.In common parlance, it is also known as sweep-in facility or flexi fixed deposit (FD).Who should use it, such FD schemes suit those who have large balance in their savings account and can only withdraw a limited number of times.An example: Let's assume that the threshold limit in your savings account.They can be either on 'Last in First Out (Lifo) or on 'First in First Out (Fifo) basis.Many brokerages or banking institutions charge flat fees, while others charge a percentage of the yield.The good thing is one may have more than one FD, therefore, it is better to diversify across tenures to minimise the interest rate risk.So, Syndicate Bank calls it the premium savings account, at hdfc Bank, its called the sweep-in facility, while at Standard Chartered Bank its the 2-in-1 account.After that if he deposits Rs 60,000 in his account, his total balance would be 70,000.A lot of people have much more than 1 lac in their accounts, not just 1 lac.A business sets a minimum balance for its main checking account, over which any funds are swept into a higher-interest investment product.Thus, if the FD tenor was for a year, but hotel tonight promo code existing users 2014 you withdrew a sum within 45 days, then the interest applicable will only be for 45 days says Narasimhan.That said, sweep accounts were originally devised to get around a government regulation that limited banks from offering interest on commercial checking accounts.Businesses and individuals need to keep an eye on the costs of sweep accounts, as the benefit from higher returns from investment vehicles outside the checking account can be offset by the fees charged for the account.Not only is the interest rate taxable as per one's tax slab, real returns are low post-inflation.
In a sweep program, a bank's computers analyze customer use of checkable deposits and "sweep" funds into money market deposit accounts.