UCO Bank Sweep-out FD

What is UCO Bank Sweep-out FD?

UCO Bank Sweep-out FD is a facility that automatically moves funds from your FD to your savings account to cover shortfalls, offering liquidity and higher interest on your idle money. The process happens without breaking the entire FD, ensuring you can access cash while the rest of your deposit continues to earn high FD interest rates. The sweep-out FD is a feature of the Flexi Fixed Deposit scheme that links your savings and fixed deposit accounts. Using this feature, you can enjoy the double benefit of higher UCO Bank FD rates and seamless liquidity.

Advantages of UCO Bank Sweep-out FD

• Earn Higher Interest Rates: You get better returns on your insufficient funds compared to a standard savings account.
• Liquidity: The sweep-out facility provides easy access to your money without needing to manually close the fixed deposit. This is a significant advantage over a traditional FD, which usually involves a penalty for UCO Bank FD premature withdrawal.
• Flexibility: You can withdraw a portion of the funds from the FD without closing the entire deposit. Withdrawals are typically allowed in specific multiples (e.g., ₹5,000 or ₹10,000).
• No Premature Withdrawal Penalty: The sweep-out mechanism avoids the penalty that would be charged for prematurely closing a regular fixed deposit. You only lose the interest on the amount that has been swept out.
• Automatic Process: The sweep-in and sweep-out are done automatically, so you don't have to monitor your account balance constantly or initiate transfers yourself.

How to Activate UCO Bank Sweep-out FD Facility 

1. Online Activation 

   These are the steps that can help you activate the UCO Bank Sweep-out facility online - 

   • Internet Banking / M-Banking Plus App: Log in using your credentials
   • Navigate Fixed Deposit: Look for the "Deposits" or "Fixed Deposits" section
   • Select Scheme: Choose the "UCO Flexi Deposit Scheme" or a similar option
   • Select Account Type: Select the savings or current account you want to link
   • Fill in Details: Specify the amount you want to convert
   • Tenure: Choose the deposit tenure
   • Fill the Application Form: Fill the form carefully
   • Submit the Request: Submit the request to create the linked account

2. Offline Activation 

   • Visit a Branch: Go to your nearest UCO Bank branch. The sweep-out facility is an integrated feature of a specific account (UCO Flexi Fixed Deposit Scheme).
   • Request Application: Ask the bank representative for the form to open a "UCO Flexi Fixed Deposit Scheme" account.
   • Fill and Submit: Complete the application form, providing your personal details, and submit it along with your KYC documents.
   • Define Terms: Specify the initial deposit amount and the tenure for the FD. The sweep-out feature will be linked to your existing savings or current account.
   • Processing & Activation: The bank official will process your application and activate the account, which includes the auto-sweep feature.

Conclusion 

UCO Bank Sweep-out FD facility helps in auto-linking your savings and FD account, which helps in transferring the access amount from the FD to the savings account at the time of an emergency or bulk transactions like loan repayment or bulk payments, without any penalty on premature withdrawal, and you can earn competitive FD interest rates.