SBI Sweep-out FD

Key Features of SBI Sweep - out FD

• Purpose of the Sweep-out: To earn higher returns from SBI FD interest.
• High Liquidity - You can access your money anytime without manually breaking the entire fixed deposit.
• No Extra Charges - There are no penalties or fees on the auto sweep FD facility.
• Threshold Limit-  Savings balance above ₹50,000 automatically sweeps into FD
• Minimum Balance - A minimum balance of ₹35,000 remains in your savings account after an auto-sweep

How to Open an SBI Sweep-Out FD?

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

1. 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.

2. 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 ₹5,000 multiples)
   • Submit the form with ID proof.
   • Bank staff will activate the feature for you.

How Does the SBI Sweep-Out FD Work?

Sweep-out in a 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 FD rates on idle funds. If money is needed, the FD is broken into parts through an SBI sweep-in FD facility. This ensures better returns while keeping funds accessible.

• Minimum Threshold Limit: ₹50,000
• Minimum Resultant Balance: ₹35,000
• Minimum Amount of TDR/ STDR: ₹15,000 (in multiples of ₹5,000)

Example

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

Benefits of SBI Sweep-Out FD

1. 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 a higher FD interest rate. Also, SBI senior citizens FD rates are higher as compared to general citizens. 

2. 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.

3. 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.

4. 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.