Bandhan Bank Sweep-out FD

What is Bandhan Bank Sweep-FD?

An auto sweep or a sweep out facility is a Bandhan Bank banking service that automatically links your savings account to a fixed deposit (FD). The main interest is to enable you to earn a high FD interest rate from Bandhan Bank and your spare cash without the need to save it. This process ensures you get the benefit of a higher interest rate without sacrificing liquidity, as you can access your funds when needed.

Advantages of Bandhan Bank Sweep-out FD

Below are the benefits of the Bandhan Bank sweep-out facility. 

• Higher Returns: The main advantage is that your idle savings earn the higher interest rate of an FD, which is typically much better than the standard savings account interest rate.
• Liquidity: Unlike a traditional FD, where you would have to break the entire deposit to access funds, a sweep facility allows you to use your money when you need it.
• Automatic Process: The transfers between the Bandhan Bank savings account and the FD are automated, so you don't need to manually manage them.
• Flexible: You can often set your own threshold limit, and the FD units created are often in small denominations, allowing for partial withdrawals without a penalty on the entire FD amount.

How to Activate Bandhan Bank Sweep-out FD

1. Online Activation 

   To activate the sweep-out facility on your Bandhan Bank account, you can use either their internet banking or mobile banking app, follow the steps - 

   • Internet Banking or mBandhan Mobile App: Log in to your account using your credentials 
   • Navigate: Go to the "Fixed Deposits" or "Deposits" section
   • Create or Activate: Look for an option of a new FD or a specific "Auto-Sweep" or "Sweep-out" facility.
   • Link Accounts: Link your existing Bandhan Bank savings account to a new or existing FD
   • Set Threshold: Specify the minimum balance.
   • Confirm: Review the details and submit your request to activate

2. Offline Activation 

   • Visit a Branch: Go to your nearest Bandhan Bank branch.
   • Request Account: Ask to open a savings account with a sweep-in/out facility
   • Complete Forms: Fill out the application and submit your KYC documents.
   • Set Threshold: On the form, specify the minimum balance you want to maintain in your savings account.
   • Review and Sign: Review the details and sign the form to finalize the process.

Wrapping Up 

The Bandhan Bank sweep-out FD facility is a useful feature that combines the high returns of a fixed deposit with the liquidity of a savings account. By automatically transferring the insufficient amount required from your FD to your savings account once a pre-set threshold is reached or during a time of bulk deposit, necessary transactions, or repaying a loan. With higher returns, liquidity, and an automatic process, it makes managing your accounts easier.