Auto Sweep Facility In Canara Bank
Auto sweep facility, also known as the sweep-in or sweep-out facility, allows you to link your savings account with a fixed deposit (FD) account in order to maximize the interest earned on your idle money. When you enable the auto sweep facility, any surplus funds in your savings account beyond a specified threshold are automatically transferred to a fixed deposit, where they earn a higher interest rate than a regular savings account.
Threshold Amount
You need to specify a minimum balance (threshold amount) in your savings or current account. Any funds above this threshold will be automatically transferred to a fixed deposit account. In tax law, the threshold amount could refer to the income level at which an individual or business becomes eligible for specific tax deductions, credits, or rates.
In the context of financial transactions, a threshold amount could represent the minimum or maximum sum of money that triggers additional actions or regulations. When discussing environmental regulations, the threshold amount could refer to the maximum allowable level of emissions that a company or industry can produce without incurring penalties or violating regulations.
In health insurance, the threshold amount might signify the sum of money that an insured individual must pay out of pocket before their insurance coverage starts covering the costs of medical services. In telecommunications or internet services, the threshold amount could represent the maximum data transfer rate or bandwidth allowed for a particular service plan. In legal matters, the threshold amount may refer to the minimum level of damages or financial losses that must be incurred by a plaintiff before they can initiate a lawsuit.
Fixed Deposit Tenure
The bank will create fixed deposits with tenures of your choice using the surplus funds.
- 7 days to 14 days
- 15 days to 30 days
- 31 days to 45 days
- 46 days to 90 days
- 91 days to 120 days
- 121 days to 179 days
- 180 days to 269 days
- 270 days to less than 1 year
- 1 year
- Above 1 year to less than 2 years
- 2 years to less than 3 years
- 3 years to less than 5 years
- 5 years to 10 years
Fixed deposit tenures typically vary by bank and can range from a few days to several years. The specific tenure options and interest rates offered by Canara Bank may have changed since my last update
Interest Rates
The interest rates on these fixed deposits will be as per the prevailing rates at the time of creation. The interest rate on fixed deposits is generally higher than that on regular savings accounts. The rate is determined by the bank and can vary depending on the amount deposited and the duration of the deposit.
It’s usually higher for longer tenures and larger deposit amounts. The interest can be paid at different intervals, depending on the terms of the FD. It can be paid monthly, quarterly, annually, or at the time of maturity.
Liquidity
The funds in these fixed deposits are not locked in, and you can withdraw them as needed. However, if you withdraw before the fixed deposit matures, you may receive a lower interest rate or face penalties, depending on the bank’s terms and conditions.Liquidity refers to the ease with which an asset or security can be quickly bought or sold in the market without causing a significant price change. It is a measure of how readily an asset can be converted into cash or cash-equivalents without affecting its price.
High liquidity means that an asset can be quickly bought or sold with minimal price fluctuations, while low liquidity means that it may take longer to buy or sell the asset, and the price may be more volatile.Liquidity is essential in financial markets because it provides efficiency and stability. Assets with high liquidity are usually more attractive to investors because they can be easily traded, allowing investors to enter or exit positions without causing drastic price changes.
Interest Calculation
The interest is typically calculated on a daily or monthly basis and credited to your savings or current account at regular intervals. Canara Bank usually calculates interest on savings accounts on a daily or quarterly basis. Canara Bank offers fixed deposits with various tenures, and interest rates may vary based on the tenure.
The interest rate is predetermined and applies to the monthly deposits made into the RD account. If you have a loan account with Canara Bank, the interest on the loan is typically calculated on a monthly reducing balance basis.
Account Status
You can view the status of your MODS account and the linked fixed deposits through your bank’s online banking platform or by contacting your bank branch. You can go to your nearest Canara Bank branch and inquire about your account status with a bank representative.
If you have registered for Canara Bank’s online banking services, you can log in to your account through their official website or mobile app. You can also contact Canara Bank’s customer service helpline for assistance. You can check your account balance and recent transactions at a Canara Bank ATM using your ATM card.
How To Activate Auto Sweep Facility In Canara Bank Online
Log in to Internet Banking
Visit the official website of Canara Bank and log in to your Internet Banking account using your User ID and Password.
Navigate to Fixed Deposit or Auto Sweep Section
Once you are logged in, look for an option related to fixed deposits or auto sweep facility. This may vary depending on the layout of Canara Bank’s online banking platform. You may find it under Fixed Deposits, Investment Options, or a similar section.
Select Auto Sweep Facility
Within the fixed deposit or investment section, there should be an option to enable the auto sweep facility. Click on this option.
Choose Account
Select the account from which you want to link the auto sweep facility. Typically, you would link it to your savings or current account.
Set Threshold Amount
You will be prompted to set a threshold amount. This is the minimum balance that you want to maintain in your savings or current account. When the balance in this account exceeds the threshold amount, the excess funds will be automatically transferred to a fixed deposit account, earning a higher interest rate.
Confirm and Review
Review the details you have entered, including the threshold amount and the linked account. Make sure everything is correct.
Authenticate
You may be asked to authenticate the transaction using your Internet Banking credentials, like an OTP (One-Time Password) or a transaction password.
Submit the Request
Once you have reviewed and confirmed the details, submit the request to activate the auto sweep facility.
Confirmation
After successfully submitting the request, you should receive a confirmation message or notification. You may also receive an email confirmation.
Monitor Your Accounts
Keep an eye on your accounts to ensure that the auto sweep facility is working as expected. You can check your fixed deposit accounts and savings/current account balances periodically.