Auto sweep facility in SBI 

In the last two decades, retail banking inIndiahas undergone a radical change.

The change is very much perceptible from operations to products. One such change is the introduction of auto sweep facility in many banks. This is a good option by which you can earn some extra amount from your idle money in your savings bank account. Most of us have some extra amount lying idle in our savings account. Now with the introduction of this facility, it is possible to earn some extra amount from that money.

Now days, almost every commercial bank offers this auto sweep facility. This is a combination of a savings account and a fixed deposit. People, who opt for this option gets two accounts, a savings and a fixed deposit account, which are interlinked. However, the customer must know that the name of this scheme is different for each bank. It is known as ‘Encash 24’ in Axis Bank, ‘Super Saver Facility’ in HDFC bank, and ‘Multi Option Deposit Scheme’ in State Bank of India and so on. Although, the basic features remain the same, there are slight differences in the different banks, depending upon the minimum amount and threshold amount.

Auto sweep facility in SBI: Multi Option Deposit Scheme

The Multi Option Deposit Scheme has been a popular choice for account holders in State Bank of India. It enables people to earn a higher rate of interest on his or her deposit. When needed, one can withdraw from their deposit account in units of Rs.1000/- by means of a cheque. State Bank of India allows flexibility in the period of term deposit from one to five years. The minimum amount needed to open a Multi Option Deposit Scheme in SBI is Rs.10, 000/- only. This service is available in all branches of SBI.

The Multi Option Deposit Scheme at the State Bank of India offers nomination facility as well. However, before opening an account, one must read carefully the rules and regulations of tax implications, premature withdrawal, automatic renewal, and other related information.

Auto sweep facility in SBI: Advantages

Auto sweep facility is something, which every account holder should opt for because of it advantages. Many account holders of SBI have opted for this facility as one can earn a good amount on the idle money in the account. This option is particularly good for salaried people, who do less transaction. In SBI, the advantage is more, as the minimum amount is Rs.10, 000/- and hence, more account holders these days are going for the Multi Option Deposit Scheme. If you think that your case is the same, if you have money lying idle in your bank account, and if you want to earn from that idle account, then opt for this auto sweep facility and get good returns.

8 comments to Auto sweep facility in SBI

  • Sanjana Mutha

    Auto sweep facility is very good option for people who can’t block there funds for ascertained periods.
    For ex you have idle amt of Rs.20000 in your saving account and you dont know when your require these fund at the same time you dont want to invest it or do fd for long term.
    You just have to is that write an application to your branch and start mod in your saving account.

    Many people presumes that rate of int is always 9% pa.
    So i want to clear there doubts.
    In sbi interest calculation is as follows:
    Eg. If yopu withdraw money from mod in 50 days.

    (i) Rate for which you have deposited your money in mod eg. 50 days (say 7.5%pa)
    or
    (ii) Rate for 1 year (say 9% pa)
    whichever is lower
    (-) 0.5% penalty for early withdrawl.

    In short,if only you deposit amt in mod for 1 year you will get full 9% otherwise your will get arounds 7%.
    But anyways its better then 4% in saving account.

  • a k singh

    i want to know interest rate on sbi sweep account facility. what is the procedure for calculating interest on sweep acct, whereas sbi is sweeping amount on regular interval i.e. monthly. pls give detailed information about this. thanks

  • s.n.singh

    i want to know that avail auto sweep facility for current account?

  • SREEJITH NAIR

    Sir,

    My branch has sweeped almost 16000 from my account into another account without asking my consent. Though ,it being a good thing that they offer higher interests, I wanted to ask that if I wish to close my deposit account …. Can it be done?

  • Indrajit Sarkar

    Sir,
    I want to know more about the sweep code a/c of sbi. Will I be able to withdraw money from ATM.at regular interval after transfering my a/c to sweep code.I also want to know rules and regulation for the same.

  • RAJESH SHARMA

    Sir,
    Auto Sweep facility is seems to be a very good option. I would like to know any disadavanges of this scheme if any…..

  • sir/madam
    i would kike to know that about auto sweep facility in sbi.i have applied to modi my s/b a/c to auto sweep mode in the month of feb 2011 but it is activated in the month of 10 mar 2012.
    sir/madam ,please suggested me for why time taken more than 01 years to activate this facility.

  • Alok Das

    Dear sir/Madam
    I would like to know that auto sweap facility of Central Bank of India and minium maintable balance is required in saving account and other conditions.

    Regards
    Alok

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