Auto Sweep Facility in pnb
Auto sweep is a facility that combines the savings bank account and the fixed deposit scheme.It benefits by making sure that when these two accounts are interlinked in such a manner that the customer gets to earn better interest for money that is above the threshold limit. Threshold limit can be defined as the highest amount that the customer wants to be in the form of cash in his savings bank account. Any amount that is above the threshold limit is transferred to the fixed deposit and the customer gets to earn higher rate of interest for his value. Auto sweep facility is named by different names in different banks.
PNB and Prudent Sweep
Auto sweep facility in PNB (Punjab National Bank) is known as Prudent Sweep Scheme. The guidelines provided by the RBI holds good for opening a Savings Bank account in this bank. The minimum deposit amount for this scheme is Rs. 500/-. A minimum quarterly average balance is required to be maintained. For rural and semi-urban areas, the minimum quarterly average balance should be Rs. 5,000/-. On failing to maintain this minimum balance, Rs. 150/- will be charged as incidental charges. For, urban and metro areas, the average minimum quarterly balance should be Rs. 10,000/- failing which Rs. 300/- will be the incidental charges. This is the same for operative and in-operative accounts.
Sweep In and Sweep Out facility in PNB
Punjab National Bank maintains different threshold limit values for different categories of areas. For the rural and semi-urban population, the sweep in and out procedure will take place after the level of Rs. 15,000/-. After this limit there should be a minimum sweep in and sweep out of Rs. 10,000/-. Thereafter, every time multiples of Rs. 10,000/- will be in sweep in and out to/from the fixed deposit. For the urban and metropolitan population, the cut-off level is maintained at Rs. 40,000/-. A sweep in and out of Rs. 10,000/- and for subsequent sweep in and out to and from the fixed deposit is Rs. 10,000/-.
The FDR for this will be issued for a minimum of 7 days and a maximum of 179 days.
The withdrawals made from the “PNB PrudentSweep” Account through clearing or transferring or cash will be treated by withdrawal from the Fixed Deposit on the Last in First out (LIFO) Basis, as discussed hereafter. In case the population is rural and semi-urban, then the balance will first be deducted from the Prudent Sweep Account. The limit in this case is Rs. 15,000/-. After this limit, withdrawal will be allowed from the Fixed Deposit in multiples of Rs. 10,000/- on LIFO basis. In case of urban and metropolitan population, the deduction from the Prudent Sweep Account will be Rs. 40,000 and for subsequent withdrawal from the Fixed Deposit will be allowed in multiples of Rs. 10,000 on the LIFO basis.
There are certain benefits that the customer gets to enjoy, such as free ATM facility (annual maintenance charges apply), free Retail Internet Banking Services and 50% concessions on annual maintenance charges for De-mat Services for the first year.