Most people use savings accounts to keep their money safe and accessible. While they do offer interest, the rate is typically low — usually between 2% and 3%. On the other hand, Fixed Deposits (FDs) offer higher returns, ranging from 6% to 9%, but the drawback is that your money gets locked in.
What if you could enjoy the flexibility of a savings account and the interest rates of an FD? The answer is a facility called Sweep-In FD, which many bank customers still aren’t aware of.
🔍 What is Sweep-In FD?
Sweep-In FD is a smart feature offered by many banks where the surplus amount in your savings account automatically gets converted into a fixed deposit. This helps you earn FD-like returns without compromising on liquidity.
🔧 How it works:
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You set a threshold limit in your savings account (e.g., ₹25,000).
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Any balance above that gets “swept in” to create a short-term FD.
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This FD earns higher interest, usually equal to regular FD rates.
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If you ever need the money, you can withdraw normally.
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Only a small penalty (usually 0.5%-1%) applies on premature withdrawal.
🏦 Benefits of Sweep-In FD:
✅ Better Returns – Earn up to 6–8% interest instead of the standard 2–3%.
✅ Automatic Transfers – No need to move money manually to FDs.
✅ Flexible Tenure – Most banks offer varied durations depending on the amount.
🏁 How to Enable Sweep-In Facility:
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Visit your bank branch or use internet banking to activate it.
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Choose your minimum threshold amount.
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Define the tenure and other preferences.
Most leading banks like SBI, HDFC, ICICI, Axis, BOB, and others provide this option under names like:
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Auto-Sweep Account
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Smart Deposit
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Flexi Deposit Account
📌 Final Words:
If you’re looking for higher returns on idle savings without locking in your money for long periods, Sweep-In FD is a smart move. With rising inflation and falling savings rates, using this feature can help your money grow — automatically and efficiently.
