Citibank in Auto Sweep FD Facility

Citibank in Auto Sweep FD Facility

Auto Sweep Fixed deposit facility is really a great scheme by which you can earn higher returns than your regular bank savings account. So What is Auto Sweep FD Facility and How it works?

Well, Auto Sweep FD facility means the predetermined surplus amount of your bank savings account will be automatically converted into a Fixed Deposit (FD) and earn higher than just 4% annual interest rates.

And when you withdraw your money, that FD will be automatically broken. In this way, your surplus money in your bank savings account will automatically earn higher interest rates than the regular savings account.

How does the auto sweep facility work?

1. You decide the maximum amount that you want in your account. This is also called the threshold limit.
2. You decide the amount for which the FDs need to be created.
3. You decide the tenure of these FDs

Interest Rate

The interest rate offered on these auto sweep FDs is the same as the rate offered on regular FDs of that duration.

This means that instead of the paltry interest on the savings account, you can earn returns in the range of 8% - 9%.

Is is Smooth?

Well,yes. It is 100% Smooth facility.

If the amount that you want to withdraw (through an ATM, cheque, etc.) is more than the amount in your account, one of the FDs would be broken immediately (this happens automatically), and you would get the money. (This is called Sweep-out or reverse-sweep).

Which banks other than Citibank offers this kind of Facility?

• ICICI Bank
• State Bank of India (SBI)
• State Bank of Mysore
• State Bank of Patiala
• State Bank of Bikaner and Jaipur (SBBJ)
• HDFC Bank
• Axis Bank (UTI Bank)
• Corporation Bank
• IDBI Bank
• Kotak Mahindra Bank
• Development Credit Bank (DCB)
• Oriental Bank of Commerce (OBC)
• Indian Bank
• Global Trust Bank (GTB)
• Andhra Bank
• Jammu and Kashmir Bank
• Citibank
• Indusind Bank