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.
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.
You set a threshold limit in your savings account (e.g., ₹25,000).
Any balance above that gets “swept in” to create a short-term FD.
This FD earns higher interest, usually equal to regular FD rates.
If you ever need the money, you can withdraw normally.
Only a small penalty (usually 0.5%-1%) applies on premature withdrawal.
✅ Better Returns – Earn up to 6–8% interest instead of the standard 2–3%.
✅ Liquidity Maintained – You can still access your funds when needed.
✅ Automatic Transfers – No need to move money manually to FDs.
✅ Flexible Tenure – Most banks offer varied durations depending on the amount.
Visit your bank branch or use internet banking to activate it.
Choose your minimum threshold amount.
Define the tenure and other preferences.
Most leading banks like SBI, HDFC, ICICI, Axis, BOB, and others provide this option under names like:
Auto-Sweep Account
Smart Deposit
Flexi Deposit Account
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.
