5 January 2024
Auto Sweep Fixed Deposits (FDs) have become a go-to financial instrument for individuals aiming to optimize savings and garner higher returns. The latest offering from IndusInd Bank, INDIE, introduces an innovative financial product combining the advantages of a savings account and a fixed deposit. Let's dive deeper into this flexible yet lucrative investment option.
Understanding Auto Sweep FDs
Auto Sweep FDs function by automatically transferring surplus funds from a savings account to a fixed deposit when the account balance surpasses a predefined threshold. This unique feature ensures that idle money doesn't linger in a low-interest savings account but is instead redirected to a higher-yielding fixed deposit.
Key Features of Auto Sweep FDs
1. Threshold Amount: The minimum balance required to activate the auto sweep mechanism varies across banks and financial institutions, typically ranging from a few thousand to lakhs of rupees.
2. Flexibility & Liquidity: With the flexibility to withdraw funds as needed, auto sweep FDs ensure liquidity, making them a convenient choice for those requiring access to their savings on short notice.
3. Capital Preservation: The fixed deposit component guarantees capital preservation, making it a relatively safer option compared to investing solely in equities or riskier assets.
Major Differences between Normal FD and Auto Sweep FD
While both Normal FDs and Auto Sweep FDs contribute to financial stability, their differences cater to distinct financial preferences. The former suits those seeking fixed returns with minimal engagement, while the latter appeals to those desiring a balance between liquidity and optimized returns. INDIE by IndusInd Bank offers high returns of up to 7.50% p.a. on both FD types. Auto sweep FD involves setting a threshold amount in a savings account, and the mechanism automatically helps you book an FD in multiples of ₹10,000 over and above the set threshold.
Maximize Savings with INDIE’s Auto Sweep FD
Embark on a seamless fixed deposit journey with a minimum threshold balance of ₹20,000, unlocking FD returns of up to 7.50% p.a. while enjoying the liquidity of a savings account. Choose the auto sweep FD feature on the INDIE app when initiating a fixed deposit and set your minimum balance above ₹20,000 for automatic fund deduction. Additionally, relish the flexibility to make payments directly from your FD when your savings account balance runs low.
Key Takeaways
Auto Sweep Fixed Deposits provide a strategic way to optimize savings by combining liquidity benefits with higher interest rates. Look beyond traditional FDs with the auto sweep feature on INDIE FD, enjoying the best of both FD and savings accounts. As an investor, understanding the nuances of this financial tool and carefully selecting the right threshold and tenure can lead to a more efficient use of your money, contributing to your overall financial well-being. INDIE by IndusInd Bank’s Auto Sweep FD emerges as a compelling choice for those seeking a harmonious blend of liquidity and returns in their financial portfolio.
