Earn FD Interest in Your Savings Account! Activate Bank’s Secret 'Auto-Sweep' Trick Today
Bank Auto Sweep Facility: Earn 7%+ FD interest rates directly in your savings account without losing liquidity. Learn how Auto-Sweep (SBI MODS, HDFC MoneyMax) works and activate it online today.
8/6/20263 min read
Do you usually keep extra cash or an emergency fund sitting in your primary savings account? Did you know that major banks pay a meager 2.5% to 3.5% per annum on savings account deposits—an interest rate that struggles to keep pace with inflation?
This means your hard-earned money loses real purchasing power every single day it stays idle.
What if you could earn a high Fixed Deposit (FD) interest rate of 7.0% to 7.5% on your savings account balance without locking up your money? Thanks to a built-in banking mechanism known as the Auto-Sweep Facility, this is 100% possible.
In this guide, we reveal how the Auto-Sweep trick works, how it keeps your money liquid, and step-by-step instructions on activating it in your bank account today.
1. What is the Auto-Sweep Facility?
The Auto-Sweep Facility is an automated feature offered by most commercial banks that links your regular savings account directly to a high-yielding short-term Fixed Deposit.
How It Works: You set a threshold balance for your savings account (e.g., ₹25,000).
Whenever your savings account balance exceeds this ₹25,000 threshold, the excess funds (in multiples of ₹1,000 or ₹10,000) automatically "sweep out" into a linked Fixed Deposit.
Instead of earning 3% interest on that extra cash, you immediately start earning 7%+ FD interest rates.
2. What Happens When You Need Cash? (The Reverse Sweep)
The most common concern investors have is: "If my money is swept into an FD, what happens if I swipe my debit card, send a UPI payment, or withdraw cash from an ATM?"
The answer is simple: The bank automatically triggers a Reverse Sweep without charging any penalties!
Real-World Scenario: Suppose your threshold is set to ₹25,000 and ₹50,000 has swept into an FD. You suddenly need to make a UPI payment of ₹40,000.
You don't need to visit the bank or break an FD manually. Simply complete your payment via UPI or ATM.
The bank automatically uses the ₹25,000 available in your savings account and "breaks" just ₹15,000 from your linked FD to complete the payment seamlessly.
The remaining ₹35,000 inside the FD continues to earn 7%+ interest!
3. Savings Account vs. Normal FD vs. Auto-Sweep Account
4. What Top Indian Banks Call Their Auto-Sweep Feature
Different banks market this facility under different proprietary names:
State Bank of India (SBI): SBI Multi Option Deposit Scheme (MODS)
HDFC Bank: MoneyMax Account / Auto-Sweep Facility
ICICI Bank: MoneyMultiplier Facility
Bank of Baroda: BoB Suvidha Savings Account
Punjab National Bank (PNB): PNB Spectrum Savings Deposit
5. Step-by-Step: How to Activate Auto-Sweep Online
Activating this service takes less than two minutes and requires no paperwork or branch visits:
Log in to Net Banking or Mobile App: Open your bank's official app (e.g., YONO SBI, HDFC MobileBanking, iMobile).
Navigate to Fixed Deposits / e-FD: Look for Auto-Sweep Facility, Sweep-In, or MODS (Multi Option Deposit).
Set Your Threshold Limit: Choose the minimum balance you want to retain in your savings account (e.g., ₹15,000 or ₹25,000).
Select FD Tenure: Pick your preferred deposit duration (typically 1 year or 555-day tenures offer peak rates).
Confirm & Enable: Accept the terms and conditions and hit submit. The feature activates instantly.
💡 Final Thoughts
Leaving surplus funds sitting in a basic savings account earning 3% is an unnecessary loss of passive income. Enable the Auto-Sweep Facility on your bank account today to enjoy seamless liquidity alongside high 7%+ FD returns!
Frequently Asked Questions (FAQs)
Q1. Is there any premature withdrawal penalty when an Auto-Sweep FD breaks?
No. Most major banks exempt Auto-Sweep deposits from premature withdrawal penalties when funds are pulled back via reverse sweep.
Q2. How is interest earned from Auto-Sweep taxed?
Interest generated through auto-sweep deposits is categorized as FD interest and taxed according to your applicable income tax slab rates.
💡 Related Reading: Still keeping your emergency cash in a basic bank account? Check out our detailed comparison on Savings Account vs FD: Discover How to Get Maximum Returns to stop inflation from eating away your savings.
🏠 Planning to Buy Your First Home? Learn how to claim up to ₹1.80 Lakhs in interest subsidies with our step-by-step guide on Pradhan Mantri Awas Yojana (PMAY): Complete Guide to Benefits, Eligibility, and How to Apply Online.