Punjab and Sind Bank Sweep-out FD

What is the Punjab and Sind Bank Sweep-out FD?

The Punjab and Sind Bank sweep-out FD feature is a component of the PSB Flexi Savings Deposit Product. It automatically manages your funds to provide a balance between the high FD interest rates from Punjab and Sind Bank and the liquidity of a savings account. When the savings balance falls below a specific threshold, the facility works by sweeping in the required funds from the linked fixed deposit to cover the shortfall.

Key Features of Punjab and Sind Bank Sweep-out FD

The Punjab and Sind Bank sweep-out facility has many advantages, some of which are given below.

• Eligible Accounts: The sweep-out facility is specifically tied to the PSB Flexi Savings Deposit Product and the PSB Smart Business Flexi Current Deposit Scheme. It is not a feature you can enable on any standard Punjab and Sind savings account.
• FD Tenure: The fixed deposits created through the sweep-out facility have a tenure ranging from 46 days to 180 days.
• Minimum Balance: To maintain this account, you must keep a minimum quarterly balance of ₹25,000. Non-maintenance of this balance may incur charges.
• Activation: Existing savings account holders can be given the option to convert their accounts to the PSB Flexi Savings Deposit Product. This is typically done by visiting a bank branch and submitting a mandate form.
• Partial Withdrawals: The sweep-out facility allows for premature withdrawals without breaking the entire fixed deposit. The bank breaks the most recently created FD first to cover the shortfall, under the Last In First Out (LIFO) rule.

How to Activate Punjab and Sind Bank Sweep-out FD 

1. Online Activation

   • Log In: Use your credentials to log in to the Punjab and Sind Bank NetBanking portal or the PSB UnIC Mobile Banking App.
   • Navigate to Deposits: Go to the "Deposits" or "Fixed Deposits" section of the platform.
   • Choose the Sweep-in Option: Look for and select the "FD Sweep-in" or "Auto Fixed Deposit" option.
   • Set Parameters: Link your existing savings or current account and define the sweep parameters. This includes setting the threshold balance and the tenure.
   • Confirm: Review all the details, complete any OTP verification, and submit your request. You will receive a confirmation message once the facility is activated.

2. Offline Activation

   • Visit a Branch: Go to your nearest Punjab and Sind Bank branch. 
   • Request the Form: Ask the bank representative for the "Auto Fixed Deposit Declaration Form" or the application form for the PSB Flexi Savings Deposit.
   • Fill and Submit: Complete the form and provide your account details and instructions for the sweep-in feature. You will need to submit the necessary KYC documents.
   • Define Threshold: On the form, you must specify the minimum balance you wish to maintain in your savings account. Any required funds above this threshold will be automatically swept into a fixed deposit.
   • Activation: The bank will process your request. Once approved, you will be notified by the bank.

Conclusion 

The Punjab and Sind Bank sweep-out FD is a feature that allows funds to be swept out from an FD to the savings account during a necessary transaction. It is a key feature of its PSB Flexi Savings Deposit, designed to optimise returns on idle savings while offering liquidity. Depositors must maintain a minimum balance of Rs. 25,000 to use the feature.