Using The Facility Smartly

The hybrid accounts can be used smartly by accounthold­ers to make the most of facility. Firstly, it should be noted that since the rate of interest for a tenure of less than 90 days is usually less than the rate of interest available on an SB account, it would be unwise to opt for a short tenure. One should choose the tenure so as to earn a higher rate of interest, but obviously it cannot be less than 90 days as one would stand to lose due to lower rate of interest on FDs of short tenure.
Secondly, while going for an auto sweep facility, it is advis­able to keep the threshold limit reasonably high so that the amount converted into FD remains there till maturity to earn higher rate of interest and does not get transferred back to SB account frequently. •