SBI Sweep-Out FD - Meaning, Benefits, and How It Works

Most people want two things when it comes to managing their money: high returns and easy access to funds. SBI's Sweep-Out FDtries to offer you both- a higher interest rate from a fixed deposit and the liquidity of a savings account.

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Let’s understand what an SBI Sweep-Out FD is, how it works, its advantages, and how you can apply for it.

What is a Sweep-Out FD?

Sweep-out in Fixed Deposit (FD) is a banking feature where extra money in a savings or current account is moved to an FD automatically. This happens when the balance crosses a set limit. The goal is to earn higher interest on idle funds. If money is needed, the FD is broken into parts through a sweep-in. This ensures better returns while keeping funds accessible.

Example

Suppose you set ₹25,000 as your sweep-out limit. If your savings account balance reaches ₹35,000, the extra ₹10,000 is moved to an FD automatically. This way, your idle money earns better returns. If needed, the FD can be broken into parts (sweep-in) to ensure liquidity without breaking the full deposit.

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Fixed Deposits, Guaranteed Return Plans & Debt Mutual Fund

Guaranteed Return Plans, Fixed Deposits &
Debt Mutual Fund

Guaranteed Return Plans

Returns Before Tax

7.1% ^(TAX-FREE)

Returns After Tax

7.1%

Guaranteed Returns

Yes

Life Cover

Yes

Tax on Profit

Tax Free*

Risk

No Risk

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Returns Before Tax

7% ^(TAXABLE)

Returns After Tax

4.8%

Guaranteed Returns

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Life Cover

Tax on Profit

Taxable

Risk

Low Risk

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Returns Before Tax

8% ^(TAXABLE)

Returns After Tax

5.5%

Guaranteed Returns

Life Cover

Tax on Profit

Taxable

Risk

High Risk

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*For annual premium upto ₹5 Lacs

How Does SBI Sweep-Out FD Work?

Let’s look at an example to understand this better.

Threshold balance

₹35,000
Minimum balance

₹25,000
Sweep amount

₹10,000 (in multiples of ₹1,000)

If you have ₹45,000 in your savings account:

₹35,000 stays in the account.
₹10,000 is swept into an FD to earn higher interest.

Now, if you spend money and your balance falls to ₹20,000:

₹5,000 is swept out from the FD and added to your account automatically to maintain the ₹25,000 minimum balance.

This process happens without your intervention. The bank takes care of it.

Features of SBI Sweep-Out FD

Here are the main features of SBI’s Sweep-Out FD:

Auto transfer:

Whatever the account balance may be, money moves automatically in and out of the account.
Partial withdrawals allowed:

You have the liberty of withdrawing just the amount you need from the FD, but in multiples of ₹1,000.
Higher interest rates:

Since money is swept into the FDS, it earns FD interest, which is higher than that on the savings accounts.

FD interest rates India have fallen consistently over the last 12 years.

Invest in Plans that offer Guaranteed Returns for over 25 Years

Benefits of SBI Sweep-Out FD

Higher Interest Withdrawals

Your savings account will only give you interest of about 2.7%. But, with a sweep-out FD, the extra money will attract an FD interest rate of anywhere between 5.5% and 7%, depending on the applicable SBI FD interest rates and FD term. So, it helps the funds to grow quicker
Automatic and stress-free

You should not worry about opening a new FD as and when you receive extra income anymore. The whole process is automatic in nature. The system deposits and breaks deposits whenever the need arises.
Withdrawing money anytime you want

If you need money suddenly, you don’t have to break your FD or wait. The sweep-out feature ensures your account balance stays healthy by pulling only the amount required from your FD.
Flexible settings

You may specify how much balance to keep in your account and how much should be swept in. So you can easily customise it to your needs.

SBI Sweep-Out FD Interest Rates (As of May 2025)

Here are the Fixed Deposit interest rates you can earn under the MOD (Multi-Option Deposit) scheme:

FD Tenure	Interest Rate (General)	Interest Rate (Senior Citizens)
7 days to 45 days	3.00%	3.50%
46 days to 179 days	4.50%	5.00%
180 days to 210 days	5.25%	5.75%
211 days to 364 days	5.75%	6.25%
1 to less than 2 years	6.80%	7.30%
2 to less than 3 years	7.00%	7.50%
3 to less than 5 years	6.75%	7.25%
5 years to 10 years	6.50%	7.50%

Note: These are indicative rates. Please check SBI’s website for the latest updates.

How to Open an SBI Sweep-Out FD?

You can activate the sweep-out feature through either of the two methods:

Online Method (via Net Banking)
- Log in to your SBI Internet Banking account.
- Click on the ‘ e-Fixed Deposit’ tab.
- Select the ‘MOD (Multi Option Deposit)’ option.
- Choose your savings account and enter:
  - Amount
  - Tenure
  - Threshold limit
- Review the details and submit.
Offline Method (at the Branch)
- Visit your nearest SBI branch.
- Ask for the MOD facility activation form.
- Fill in the details:
  - Savings account number
  - Threshold and minimum balance
  - Sweep amount (in ₹1,000 multiples)
- Submit the form with ID proof.
- Bank staff will activate the feature for you.

Things to Keep in Mind

The minimum amount for the first sweep into FD is usually ₹10,000.
Sweep-outs happen in multiples of ₹1,000 only.
You may have to maintain a certain minimum balance in your savings account.
Interest earned is taxable as per your income tax slab.

Conclusion

SBI’s Sweep-Out FD is a smart way to earn more from the extra money in your savings account. It gives you the benefit of higher FD interest and still keeps your money available when needed. The process is automatic, so you don’t have to do anything once it’s set up. If you often keep a high balance in your account, this is a great option to grow your money without locking it away.

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Frequently Asked Questions

What is the difference between Sweep-In and Sweep-Out in SBI?
Sweep-In and Sweep-Out are capabilities of the Auto Sweep facility that connect your Savings Account with a Fixed Deposit (FD).
- Sweep out is a process whereby funds are automatically moved from a savings account to a fixed deposit (FD) when the savings account is in excess of a set limit.
- Sweep-in, on the other hand, is the opposite process, which is the transfer of funds from the FD to the savings account to bankroll the deficit, or, where necessary.
Is there any penalty when money is withdrawn from the Sweep-Out FD?

Yes, in most cases, withdrawal of money before the expiry of the term of a Fixed Deposit made using the Sweep-Out facility in SBI attracts a penalty. However, how this “penalty” is implemented is generally with regard to reducing the interest rate that you would have accrued on the amount withdrawn.
Can I choose the amount and time period for the Sweep-Out FD?

Yes, you can set both the amount and the FD duration.
Do I have to pay tax on the interest from the Sweep-Out FD?

Yes, the interest is taxable as per your income slab.
Can I open a Sweep-Out FD online through SBI NetBanking?

Yes, it can be opened easily through SBI Internet Banking.

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+ Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
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