Punjab National Bank Sweep Out FD

What is a Punjab National Bank Sweep Out FD

PNB sweep-out FD is a facility that offers the benefits of both a savings account and a fixed deposit account, i.e., the liquidity of a savings account and the higher PNB FD interest rates. The Punjab National Bank sets a "cut-off" level (e.g., ₹50,000 for individuals) for the account. Any amount exceeding this cut-off is automatically transferred to a savings account. The transfer happens in multiples of a predetermined amount (e.g., ₹5,000). The fixed deposit is created for a short-term tenure, typically 46 to 179 days, and earns the interest rate applicable to that specific FD tenure.

Advantages of Punjab National Bank Sweep-Out FD

Below are the various facilities available under the Punjab National Bank sweep-out feature. 

• No Balance Maintenance Charges: There are no charges for not maintaining the Quarterly Average Balance (QAB). This policy ensures account holders are not penalized for fluctuations in their account's average balance throughout the quarter.
• Automatic Sweeping: The funds are automatically transferred between your savings account and the FD, or vice versa, when the balance falls below a pre-determined limit, to create a smooth experience.
• Liquidity: The plan gives you quick access to your money in times of need without the penalties and administrative hassles of or any penalty for breaking out a standard fixed deposit.
• Flexibility in Tenure: The underlying fixed deposits have flexible tenure, with the tenure often ranging between 46 days and 179 days, offering flexibility in the tenure of your investment.

How to Activate the PNB Sweep-out FD Facility 

The Punjab National Bank (PNB) sweep-out FD facility is tied to a specific type of savings account, the PNB Prudent Sweep Deposit Scheme. Here are the steps to activate the PNB Sweep-out FD facility:

• Official Website or PNB One mobile app: Log in Official Website or PNB One mobile app using your credentials
• Go to Savings Account: Navigate to the Savings Account or Deposits section.
• Search for the Scheme: Look for and select the "PNB SF Prudent Sweep Deposit Scheme".
• Application Form details: Fill out the application form with the necessary details
• Temporary Reference Number (TCRN): Obtain Your Temporary Reference Number and make sure to save it
• Verification: After the verification for the PNB SF Prudent Sweep Deposit Scheme account will be opened
• Completion: After the completion, the account will be configured with the sweep-out feature

Conclusion 

Punjab National Bank's Sweep Out FD facility is an automatic feature that transfers the required amount from the FD to the savings account at the time of an emergency payment or daily transactions during a shortfall of funds in your savings account. This facility makes sure you don't need to pay any charges for not maintaining the amount in your FD. It offers you a flexible tenure ranging between 46 days and 179 days with the best automatic sweeping option.