Auto Sweep In SBI

Auto Sweep, also known as the SBI Multi Option Deposit Scheme (MODS), is a feature offered by the State Bank of India (SBI) and some other banks in India.

It’s a type of savings account that allows you to maintain a certain minimum balance in your account while automatically transferring any excess funds above that threshold into a fixed deposit account.

Minimum Balance

You need to maintain a minimum balance in your savings account, which is predetermined by the bank. This balance is usually higher than the normal minimum balance required for a regular savings account.

Threshold Limit

Any amount exceeding the minimum balance is treated as surplus funds.

Auto Sweep

The surplus funds are automatically transferred into fixed deposit accounts in multiples of a pre-defined amount, often referred to as a “threshold limit.”

Fixed Deposits

These fixed deposits are created with tenures usually ranging from 1 to 5 years, and they earn higher interest rates than regular savings accounts.

Withdrawals

If you need to use the funds from the fixed deposit portion, they can be broken and transferred back to your savings account. However, this process might involve some penalties or loss of interest.

How To Turn On Auto Sweep In SBI

Visit a Branch or Use Online Banking

Depending on the features and options available, you can either visit your nearest SBI branch or use SBI’s online banking portal.

Access Your Account

If using online banking, log in to your SBI online banking account using your username and password.

Locate Auto Sweep Facility

Look for the option to set up an auto sweep facility. This might be under headings like “Account Services,” “Deposits,” or “Facilities.”

Choose Accounts

You’ll likely need to select the accounts that will be involved in the auto sweep facility. In most cases, this involves linking a savings account with a fixed deposit or term deposit account.

Set Threshold Amount

Decide on a minimum balance threshold for your savings account. When the balance exceeds this threshold, the excess amount will be automatically transferred to the linked fixed deposit account.

Select Tenure

Specify the tenure or maturity period of the fixed deposit account. This is how long your money will remain locked in the fixed deposit.

Confirm Terms and Conditions

Review and confirm any terms and conditions associated with the auto sweep facility.

Complete Setup

Follow the prompts to complete the setup. This might involve confirming the transaction with an OTP (One-Time Password) if you’re using online banking.

 Confirmation and Communication

You should receive a confirmation of the auto sweep setup. Additionally, you might be able to monitor the auto sweep activity through your online banking portal or receive statements.