Sweep-in FD

What is it

A sweep-in FD automatically converts any amount in your savings account above a threshold (say ₹50,000) into a linked fixed deposit earning a higher rate — and if you need the money, it 'sweeps back' automatically to cover the withdrawal. You get FD-like returns on idle balances without ever manually moving money.

Sweep-in (or 'auto FD') facilities have been offered by most major Indian banks for over a decade as a way to help customers earn more on idle savings balances without requiring them to actively manage separate fixed deposits.

Who it's best for

Anyone who wants their savings account balance to automatically earn FD-like interest above a threshold, with zero manual effort.

Who should avoid it

You'd get a meaningfully better rate with a standalone FD or liquid fund and don't need the instant-access convenience.

Pros

• Fully automatic — no manual transfers needed to earn a better rate
• Instant access — funds sweep back automatically the moment you need them
• No separate paperwork; usually a checkbox feature on your existing savings account

Cons

• Rate is typically a notch lower than a standalone FD of the same tenure
• Breaking the underlying FD (via withdrawal) may lose some interest, similar to regular FD premature closure rules
• Only available if your bank offers the feature, and terms vary widely

Key ratios to check