A sweep-in facility links your savings account to a fixed deposit. When your balance exceeds a specified threshold, the excess automatically sweeps into a fixed deposit to earn higher interest. When funds are required, the deposit is partially broken in multiples (e.g., ₹1,000) and swept back into the savings account.
| Parameter | Sweep-in details |
|---|---|
| Threshold limit | You decide the balance level above which surplus is swept into an FD |
| Minimum investment | Usually multiples of ₹1,000 |
| Tenure | 1–5 years (similar to regular FDs) |
| Interest rate | Same as regular FDs for the tenure |
| Withdrawals | Partial withdrawal permitted in multiples without breaking entire FD |
Advantages
- Automatic savings maximisation: You don’t need to transfer money manually.
- Higher yield: Surplus cash earns FD interest instead of lying idle in a savings account.
- Liquidity: You can access funds instantly when needed.
Sweep-in FDs differ from flexi deposits in that the transfer is completely automated based on thresholds, whereas flexi deposits may require manual top-ups. This facility is suitable for people who maintain fluctuating balances and want their idle funds to work harder.
