09 April 2024 | By INDIE
Do you want to manage your money between a savings account and a fixed deposit (FD)? For frequent travelers, INDIE's fixed deposit auto sweep facility offers a hassle-free way to make the most out of your savings. With this unique financial product, you can enjoy the benefits of a savings account and earn returns basis an FD without the manual transfer of money. In this article, we will explore how INDIE auto sweep FD can help you maximize your savings while travelling. So, pack your bags and dive in!
Have you heard about the FD sweep-in facility? It is a financial product that can help you earn more on your idle money while also keeping it easily accessible.
Let's start with the basics. A fixed deposit is a type of investment where you deposit a lump sum of money for a fixed period. This way, you earn a fixed rate of interest on that amount. The longer the term, the higher the interest rate. However, you can only withdraw the money after the maturity date. Early withdrawal may incur a penalty.
This is where the sweep-in fixed deposit advantage comes in. It is a type of fixed deposit that allows you to link your savings or current account with your fixed deposit account. Any surplus money in your savings or current account is automatically swept into the FD account. It earns you a higher rate of interest than what you would earn in a regular savings account. When you need the money, you can withdraw it from your savings or current account. The required amount will be automatically swept out of the FD account without any penalty.
1. Auto sweep allows travelers to maximize returns on idle funds. With this feature, the money will automatically transfer to a fixed deposit. This ensures optimal utilization of funds for travel and savings.
2. With the transferred amount earning interest in an FD, you can enjoy higher interest rates and spend from savings accounts.
3. Auto sweep maintains liquidity for day-to-day expenses by keeping the minimum balance in the savings account. So, as you travel a lot, the money will be easily accessible to you.
4. Setting a threshold limit, such as ₹20,000, gives you control over when the auto sweep should activate. You have the freedom to customize the process based on your financial preferences.
5. With a portion of funds securely parked in a fixed deposit, you have a financial safety net for emergencies or unexpected expenses.
Also Read: Unlocking the Power of Auto Sweep FD on INDIE
Here is a table explaining the maximum liquidity of sweep-in FDs in INDIE, regular savings accounts and mutual funds -
| Product |
Maximum Liquidity |
Description |
| Sweep-in FD |
High |
Funds are readily available anytime. When your savings account balance exceeds a set threshold, excess funds are automatically swept into an FD. You can also sweep out funds from the FD back to your savings account if needed. |
| Regular savings account |
High |
You have easy access to your funds with features like debit cards, ATM withdrawals and online transfers. However, there may be limitations on the number of free withdrawals or transfers per month. |
| Mutual Fund |
Low |
Liquidity depends on the type of mutual fund. Open-end funds allow redemptions typically within a few business days, but the value of your shares may fluctuate. Closed-end funds have fixed trading days on exchanges, and their value can differ from the net asset value (NAV). |
Sweep-in FD thresholds: The minimum amount for a sweep-in FD and the threshold for triggering sweeps can vary depending on the bank and the specific FD product.
Sweep-out fees: Some banks may charge a fee for sweeping funds out of an FD before maturity.
The auto sweep FD by INDIE is a hassle-free way to make the most out of your savings. With the sweep-in facility, you can earn more on your idle money while keeping it easily accessible. The product offers several benefits, such as automatically transferring excess funds from your savings account to your fixed deposit. Other advantages include higher interest rates on fixed deposits compared to savings accounts.
This enables you to have easy access to funds through the sweep-out option and maximum liquidity with the sweep-in option. It maximizes your savings with minimal effort. This makes it an ideal financial product for frequent travelers and those who want to earn higher returns on their idle money without compromising on liquidity.
So, if you are looking for a smart way to manage your money, open an auto sweep FD with INDIE by IndusInd Bank today!
