Bank of Baroda Sweep-out FD

What is the Bank of Baroda Sweep-out FD

The Bank of Baroda Sweep-out facility helps in automating funds transferring from your FD to your savings account if the balance falls below a certain level. This ensures you always have enough money to complete transactions or withdrawals without a hassle and maintain your high Bank of Baroda FD interest rates. The funds are generally transferred back on a Last-In, First-Out (LIFO) basis, meaning the most recently created FD is broken first.

Advantages of Bank of Baroda Sweep-out FD

The Bank of Baroda sweep-out FD is often known for its liquidity and high returns. Below are some other benefits of this facility. Go through them carefully - 

• Automated Convenience: The process is totally automated. There is no need to transfer funds manually and monitor the balance. The bank does all the work of transferring the money in the background, so it is a hassle-free method of maximizing savings.
• No Penalty on Partial Withdrawals: Unlike in a traditional FD, where you would pay a penalty on premature closure, with the sweep-out facility, only a part of the FD is broken when the funds are swept. This enables you to draw the money you require without forfeiting the interest on the whole deposit.
• Hassle-Free Liquidity: With this facility, you get a high interest rate of an FD and the complete liquidity of a Bank of Baroda savings account. In case your savings account balance falls below the amount required to make a transaction, the system automatically sweeps out the required amount of money from your FD, so you do not need to worry about payments being delayed.
• Maximum Returns on Savings: Your surplus funds don't just sit in your FD. The moment your balance exceeds a preset threshold, the excess is automatically moved to a savings account where it earns a significantly higher interest rate.

How to Activate Bank of Baroda Sweep-out FD

To activate the Bank of Baroda sweep-out FD, follow several steps to avoid any confusion - 

1. Online Activation 

   • Netbanking or Mobile Application: Log in using your credentials and choose an Eligible Account
   • Search for the sweep-out option: The sweep-out feature is available for the Baroda Super Savings Account.
   • Click on the Apply Now: Click on the "Apply Now" or "Open Account" 
   • Fill the Form: Fill in your personal details, and your details for KYC verification.
   • Collect Reference Number: After submitting, you will likely receive a reference number.
   • Complete KYC Process: BOB often requires a physical visit to a branch to complete the verification 
   • Confirmation: Once the account is opened and activated, the sweeping facility is automatically enabled

2. Offline Activation 

   • Visit the Branch: Go to your nearest Punjab and Sind Bank branch.
   • Request Account: Ask to open a savings account with an auto-sweep feature, such as the PSB Flexi Savings Deposit. 
   • Complete Forms: Fill out the application and submit your KYC documents.
   • Set Threshold: On the form, specify the minimum balance you want to maintain.
   • Review and Sign: Review the details and sign the form to finalize the process.

Conclusion 

The Bank of Baroda sweep-out FD offers high returns on your savings and full access to your funds. This feature automatically sweeps out the money you need from your linked fixed deposit to your savings account, ensuring you can make transactions without a low balance. All while your fixed deposits continue to earn higher FD interest rates with no penalty on premature withdrawal.