SBI Sweep-in FD

Key Details of SBI Sweep-in FD

These are the few details of Sweep-in FD SBI:

Benefits of SBI Sweep-in FD

Some of the key advantages of an SBI Sweep-In FD account include:

1. Earning Better Interest Rates

   Instead of letting your surplus funds lie idle in a savings account, the Sweep-In FD in SBI ensures that the funds are moved from the savings account into an FD to garner higher interest.

2. No Need to Break the Complete FD

   Breaking only the required amount means the rest of the FD is left intact. Hence, you don't lose the FD interest rate.

3. No Charges

   There are no fees, penalties, or any other charges for utilising the sweep-in facility or withdrawing funds from the FD.

4. Highly Liquid

   Although your money is moved into an FD, you can access it easily anytime that you need, just like your savings account.

5. Perfect for Business Owners

   Those running a business with current accounts are spared overdraft charges. The money that is being swept in, meanwhile, earns interest and is ready for use.

How Does the SBI Sweep-in Facility Work?

Once you activate the sweep-in facility in your SBI account, your savings account will be linked to a fixed deposit. You can set a minimum balance, and any amount above this limit will be 'swept in' to a fixed deposit.

To Explain:

• You keep a minimum balance of ₹50,000.
• If your savings account balance becomes ₹60,000, SBI will rush and transfer ₹15,000 to the FD to maintain ₹35,000 as the minimum resultant balance.
• Since this FD earns higher SBI interest rate than a SBI savings deposit, it is more profitable.

You can also withdraw money at any time; the bank will break down the FD in reverse order (Last-In-First-Out) for only the amount required, ensuring that you do not lose interest on the total amount.

How do you apply for the SBI Sweep-in FD Online?

Activating this facility is quick and easy via SBI NetBanking, and you can also activate the sweep-in facility by visiting your nearest SBI branch.

Here are some steps to activate the sweep-in facility using NetBanking for SBI Sweep-In FD online:

• Log in to your SBI NetBanking account.
  
  
• Go to the ‘Fixed Deposit’ section.
  
  
• Select ‘FD Sweep-In’.
  
  
• Choose the savings account and the FD you want to link.
  
  
• Set the minimum balance limit for the savings account.
  
  
• Confirm your selections and submit.
  
  

Example to Understand SBI Sweep-in FD

Let’s understand SBI Sweep-In FD with a simple example:

Ms. Aditi maintains a savings account with SBI and has enabled the sweep-in (MOD) facility. She sets the threshold balance at ₹50,000

• Her current account balance: ₹40,000
• She receives a payment of: ₹30,000
• New account balance becomes: ₹40,000 + ₹30,000 = ₹70,000

Since the minimum sweep amount is ₹15,000, and the surplus (₹20,000) meets this condition, SBI will create a MOD FD. The ₹20,000 now earns higher FD interest, and Aditi can still access it anytime through automatic sweep-in if her balance falls below the threshold.

Things to Keep in Mind

• SBI Sweep-ins happen in ₹5,000 multiples only.
• The new minimum resultant balance in SB (Post Auto Sweep) is now ₹35,000.
• The minimum amount for term deposit receipts and special term deposit receipts is ₹15,000
• The interest is calculated based on the FD tenure of the swept-in amount.
• Withdrawals happen on a Last-In-First-Out (LIFO) basis.
• If your account is not eligible, you may be required to upgrade to a premium account or maintain a higher minimum balance.