Types of fixed deposits
Sweep-in FD (Auto-Sweep Facility)
Earn FD interest on idle savings balance while keeping instant access — how auto-sweep works, thresholds, break order and interest.
Updated 30 September 2026 · 25 banks trackedHighest FD rate now
7.45%
Bandhan Bank · 2 – <3 yearsWhat you need to know
A sweep-in (flexi or auto-sweep) facility links an FD to your savings account. Balance above a threshold moves automatically into FDs; when the savings balance falls short, the FD is broken in units to cover payments. You earn FD interest for the days the money stayed in the FD.
How it works
- Set thresholdE.g. keep ₹25,000 in savings; excess above this sweeps out.
- Sweep-outSurplus moves into FDs in fixed multiples (e.g. ₹5,000/₹10,000) for a set tenure such as 1 year.
- Sweep-inIf a payment needs more money, FD units are broken — usually last-in-first-out — and credited back.
- InterestBroken units earn interest for the period held; many banks waive or reduce the premature penalty on sweep breaks.
Sweep-in FD vs savings account vs regular FD
| Savings | Sweep-in | Regular FD | |
|---|---|---|---|
| Rate | Savings rate | FD rate for period held | FD rate |
| Access | Instant | Instant (auto-break) | Penalty to break |
| Best for | Daily spending | Emergency fund | Known goals |
Frequently asked questions
Is there a penalty when the sweep FD breaks?
Varies by bank — some pay the rate for the period held with no penalty; others apply a small one. Check the bank’s terms.
Information is for education and comparison. Rates and rules change — confirm with your bank and a tax adviser before investing. FinancePortal is not a financial or tax adviser.