Sweep-in or Multiplier Account

 

Sweep-in or Multiplier Account

• This account provides the liquidity of a savings account coupled with high interest earnings of a fixed deposit which is achieved through a fixed-deposit linked to the savings account.
• The balance in this account is never idle. Fixed deposit(s) from the surplus funds in your savings bank account subject to a minimum balance of Rs 10,000 is created in multiples of Rs 5,000 for tenure of one year or more as instructed and provides maximum returns.
• The account also provides maximum liquidity. All linked fixed deposits are enabled for automatic reverse sweep in multiples of Rs 5,000 on a last-in-first-out (LIFO) basis when the balance in the savings account falls below Rs 10,000. This way the amount that is reversed earns interest rates applicable for the period that the deposit was held with the bank.

Features vary across banks and also depend on the bank’s relationship with the corporate client. Service tax @ 10.30 % is applicable over and above the charges levied on facilities offered with this account.

If your  money is sit idle in savings bank accounts just earning 4%.   There is an option to  earn  higher interest on your idle money parked in  savings bank accounts.  Most of the banks in India have a deposit scheme called Flexi-Deposit offering higher interest income to the depositors. 

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