The way auto-sweep works, it makes it an ideal place to park emergency funds.
In case if you have any emergence in a particular month, then you can withdraw the amount any time, the funds will get sweeped from the deposit account to saving account, and you dont have to pay any penalty, which you generally have to pay when.Yes, you can generate and print an MOD account advice containing all the relevant details.Only if you are unsure of your money lying in bank and when you might need it, you should be using Auto-Sweep facility.Some banks are also known to give simple interest on the Auto-sweep Fixed Deposits and not compound interest as in case of normal fixed deposits.Here you can select a threshold amount, when your saving account has funds above that threshold level, the extra money gets sweeped to the fixed deposit account, so you get the interest rate of fixed deposit on that amount.In case of joint accounts, the senior citizen benefit can be availed only if the first account holder qualifies for this benefit.The MOD (Multi Option Deposit) account is a combination of your transactional (debit) account and deposit account.Oriental Bank of Commerce Flexi Fixed Deposit Scheme.In general the interest rates of normal fixed deposit and FDs under Auto-Sweep are same, but some banks charge a penalty if the FD under auto-sweep accounts are broken before some duration like 1 yr and 1 day.'Since FDs created from autosweep accounts tend to earn interest only if monies remain there for a minimum period of time, liquid funds (mutual funds) may be better as their accrual is daily said Dhawan.Here is a list of other banks and the name by sweep the leg johnny gif which they call this Auto-Sweep facility (thanks for Gopal Gidwani for the info).Request initiated beyond this period will be scheduled for next opening hours.e.A lot the voice season 8 contestant dies of people have much more than 1 lac in their accounts, not just 1 lac.However if you have auto-sweep enabled in your savings account with threshold limit of Rs 20,000, the additional 80,000 will actually be in form of a fixed deposit and it will earn an interest of 8 (assumption).Requests initiated beyond this period will be scheduled for the next opening hours.There is a better alternative to saving account,which gives you the flexibility of a saving account and return of fixed deposit account, this account is called as Auto Sweep Account and is now offered by almost every nationalized bank in India. .
Check the frequency of your withdrawals and the bank's deposit rates for the relevant period.Suppose your account has Rs 1 lac for 1 year, it will earn.5 interest on it, which is Rs 3,500 for a year.Try to choose a bank that has lower limits on the autosweep savings account.But then, the money keeps lying in the bank for months and months and sometimes even years.No, you will have to visit your branch for adding a new nominee.If you have a lot of cash, lying idle in your Bank Account, and at the same time you dont want to commit to long-term investment, you need to enable the Auto-Sweep facility in your Savings Bank account.Losing on interest, even if you were to put over a lakh in the autosweep savings account at the start of every month, frequent withdrawals will mean lower returns than a normal savings account.This kind of deposits is completely liquid.The minimum days and minimum amount applicable for additional rate of interest for senior citizens will be as per Bank's discretion.