Saving bank account is the most preferred method to keep extra money but saving bank accounts only gives interest in a range of 4-6%. What to do to earn maximum interest. Well, today we will discuss 10 best Saving Bank accounts with an auto sweep facility that can earn more interest.
If you have a lot of cash lying idle in your bank account and you don’t want to invest this money in long term. What you should do?
Well, one way is to make a Fixed Deposit of this money. But if you are too busy and forgot to make FD you may lose interest earning, another option is to enable the Auto Sweep facility in your saving bank account.
What is Auto Sweep Facility?
Auto sweep facility provides the combined benefit of saving bank accounts and fixed deposits. This facility interlinks your saving bank account with a fixed deposit account.
This facility makes sure that extra money crossing the threshold limit defined by you will automatically get transferred to a fixed deposit account and you will earn a better returns.
Example How Auto sweep facility can earn you more return?
Suppose your saving bank account has Rs. 1 lac for 1 year. In a normal saving bank account, it will earn interest 4% which is Rs.4000 for year.
If you have an auto sweep facility with a threshold limit of Rs. 10,000 than an additional Rs.90000 will form a fixed deposit and earn 8% interest.
At year-end you will earn Rs. 400 interest earned from Rs. 10,000 plus Rs.7200 interest earn from Rs.90000. So Total interest will be Rs.7600 which is far greater than the interest earn in first case.
10 Best Saving Bank Account to earn maximum interest
Today multiple banks provide auto sweep facility but they name it differently. HDFC bank calls it Sweep-in. ICICI bank calls it money multiplier and SBI calls it saving plus. Below is list of 10 Best Saving accounts which can earn maximum interest.
According to me this account is idle place to keep an emergency fund. So if you are keeping your fund in saving bank account make sure you take auto sweep facility to earn better returns.