Auto Sweep In Axis Bank
Auto Sweep is a banking feature offered by Axis Bank and many other banks in India. It is designed to help customers maximize the interest earned on their savings while maintaining easy access to their funds.
This feature is particularly useful for individuals who have both a savings account and a fixed deposit account with the same bank.
The Auto Sweep facility works based on the concept of linking your savings account with a fixed deposit account. Here’s how it generally works:
Threshold Balance
When you open an Auto Sweep account, you set a threshold balance. This is the minimum balance that you want to maintain in your savings account for your regular transactions and expenses.
Surplus Amount
Any amount above the threshold balance in your savings account is considered the surplus amount. This surplus amount is automatically transferred to a linked fixed deposit account in predefined units, typically in multiples of a certain amount.
Fixed Deposit Conversion
The surplus amount in your savings account is converted into fixed deposits for a specific tenure, often ranging from 1 month to 1 year or more. These fixed deposits earn a higher interest rate than what a regular savings account offers.
Access to Funds
In case you need funds that exceed your threshold balance, the fixed deposits are broken sequentially (starting from the earliest one) to cover the deficit. This ensures that you maintain your minimum threshold balance while still having access to additional funds when needed.
Interest Earnings
The fixed deposits linked to the Auto Sweep account earn interest at the applicable fixed deposit interest rate. This can potentially lead to higher overall interest earnings compared to just keeping funds in a regular savings account.
Automatic Sweep-in and Sweep-out
The process of moving funds between the savings account and the fixed deposit account is often referred to as “sweep-in” (when funds are moved from savings to fixed deposit) and “sweep-out” (when funds are moved from fixed deposit to savings).
How To Turn On Auto Sweep In Axis Bank
Visit the Bank
Go to your nearest Axis Bank branch or log in to your Axis Bank internet banking account.
Speak to Customer Support
If you’re at the branch, you can speak to a bank representative to inquire about the auto sweep facility and its availability for your account type. If you’re using internet banking, you might find information about this feature in the account services or settings section.
Internet Banking
Log in to your Axis Bank internet banking account. Navigate to the “Services” or “Accounts” section. Look for options related to “Auto Sweep” or “Sweep-in/Sweep-out.” Follow the on-screen instructions to enable the facility.
Form Submission
In some cases, you might need to fill out a form to request the activation of the auto sweep facility. These forms are usually available at the bank branch or on the official website.
Linking Accounts
You’ll likely need to link your savings account with a fixed deposit account for the auto sweep feature to work. If you don’t have a linked fixed deposit account, you might need to open one.
Terms and Conditions
Make sure you understand the terms and conditions associated with the auto sweep facility, including minimum balance requirements, the threshold amount for transfers, and any charges that might apply.
Specify Parameters
During the setup process, you might need to specify the minimum balance you want to maintain in your savings account, as well as the excess amount that should trigger the transfer to the fixed deposit account.
Fixed Deposit
Fixed deposits have a fixed tenure or maturity period during which your money is locked in the account. This period can range from a few days to several years.
Complete the Process
Once you’ve entered the OTP and any other required details, follow the prompts to complete the setup of the auto fixed deposit.
