Auto Sweep Facility in ICICI
Retail banking inIndiahas undergone a radical change in the last two decades, and the change is discernible from operations to products. A classic example of such changes is the introduction of auto sweep facility in many banks.
What is auto sweep facility?
These days almost all the leading banks of the country provide the auto sweep facility. This is a combination of a savings account and a fixed deposit account. These two accounts remain interlinked. Every bank has a certain stipulated amount, which is to be kept in the savings account. However, when the amount exceeds this specified limit (known as the threshold limit) it automatically gets transferred to the fixed deposit account. Therefore, the customer earns a greater amount, as his or her money does not lay idle in the savings account. Now days, this option has been very popular among the people.
The customer must know that the name of the auto sweep facility is different for each bank. In the Axis Bank it is known as ‘Encash 24’, in HDFC bank it is known as ‘Super Saver Facility’, in State Bank of India it is known as ‘Multi Option Deposit Scheme’, in IDBI bank it is known as ‘Sweep-in Savings account’ and so on. Although the name varies, the basic features of this scheme remain the same, with differences of threshold amount and related features, in different banks.
Auto sweep facility in ICICI
In ICICI bank, the auto sweep facility is known as Money Multiplier Feature. To avail this Money Multiplier Feature, one must hold a savings account of the bank and maintain a minimum average balance of Rs.15, 000 or Rs.30, 000. A person willing to enable a Money Multiplier Feature in the bank must give an application or send a request to the bank. The customer can then avail the auto sweep facility. However, it must be noted that the fixed deposit creation under the Money Multiplier Feature will be in units of Rs.5000 each. This option is available in the ICICI outlets.
The minimum term period of the Money Multiplier Feature is one year; however, it can be extended upon the completion of one term. The rate of interest of the fixed deposit account will be set by the bank and can be revised from time to time. Amount can be withdrawn through means of cheques, ATM or credit or debit cards.
Auto sweep facility in ICICI benefits
Auto sweep facility or Money Multiplier Feature as it is known in the ICICI bank is something which enables you to utilize your idle money, which is laying in your account for no use. In ICICI bank, the rate varies between 8 to 8.5%. It is thus, a good option of earning a handsome amount at the end of the year with your idle money. This scheme is become increasingly popular among account holders of this branch and is opting for it more and more every year. So if you are an account holder and planning to make some more money than opt for this scheme and earn a good amount!