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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:

• 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.

🏦 Benefits of Sweep-In FD:

✅ 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.

🏁 How to Enable Sweep-In Facility:

• 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

📌 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.