YES Bank Sweep Out FD

What is YES Bank Sweep-out FD?

A YES Bank Sweep-out FD is a facility that automatically transfers the funds from your FD to a savings account to earn better interest and fills the gap of the required balance. When the savings account balance falls below a pre-set limit, the required funds are automatically transferred back from the FD to the savings account. This provides the twin benefits of higher Yes Bank FD interest rates and the liquidity of a savings account. While setting up the auto sweep feature, you need to define a minimum balance requirement in your savings account to trigger the sweep-out feature.

Advantages of YES Bank Sweep Out FD 

The YES Bank sweep-out facility has many advantages, some of which are mentioned below.

• Automatically Sweeping: When the required amount is automatically transferred from your FD to your YES Bank savings, your idle money earns higher interest.
• Liquidity and Flexibility: Whenever there is an emergency or any daily transactions need to be made, the FD amount is swept directly into your YES Bank savings account, ensuring the money is easily accessible. 
• Combines High Interest with Easy Access: This facility combines the liquidity offered by a savings account with the higher earning potential of a fixed deposit.
• Automated Transactions: The automatic feature of sweep-out FD in YES Bank provides a smooth banking experience by eliminating the need for manual transfers between accounts.
• Financial Safety Net: The sweep-out FD facility serves as a good safety net. It helps avoid cases where you bounce a cheque or fail to carry out a transaction because of a lack of funds, since the system will automatically ensure that your savings account is topped up when necessary.

How to Activate YES Bank Sweep-out FD Facility 

1. Online Activation 

   • Internet Banking or Mobile Application: Access using your YES Bank credentials 
   • Navigate to the "Fixed Deposits" section: Go to "Open Fixed Deposit" or "Create a New Fixed Deposit."
   • Select the "Money Multiplier" option: Within the fixed deposit creation section, now enable the "Sweep-out" facility. 
   • Configure the details: Enter minimum balance, minimum amount, and tenure
   • Review and Confirmation: Review the details and confirm the transaction. 
   • Activation: The FD will be created, and the sweep-out facility will be activated.

2. Offline Activation 

   • Visit Branch: Go to your nearest YES Bank branch.
   • Request Activation: Ask to activate the "Money Multiplier" or "Smart Access" facility.
   • Complete Forms: Fill out the application and submit your KYC documents.
   • Define Threshold: 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.

Conclusion 

The YES Bank Sweep out FD facility allows you to transfer your funds from a Fixed Deposit into a savings account if the required balance falls short. It offers an easy and automated mechanism for maximizing your returns without compromising on its liquidity. The sweep-out FD facility combines the convenience of easy access with the security of a financial safety net, with the benefit of higher returns due to the intelligent management of your finances between a high-interest Fixed Deposit and a liquid savings account. This is why it is suitable for investors who do not want to spend time on transferring funds and managing their accounts manually.