Auto Sweep Account – Enable it in your Saving Bank Account

POSTED BY Jagoinvestor ON March 31, 2011 COMMENTS (558)

Do you have a Bank Account? Off-course you do! How much money do you have in your account? 5,000? 20,000? or a few lacs? If you have a lot of cash, lying idle in your Bank Account, and at the same time you don’t want to commit to long-term investment, you need to enable the Auto-Sweep facility in your Savings Bank account. This will make sure you earn good interest on a major part on the cash lying in your Savings account.

Auto Sweep Bank account

What is Auto-Sweep Account ?

“Auto Sweep” is a facility which provides, the combined benefits of a Savings Bank account and Fixed Deposits. Auto-Sweep facility interlinks your saving bank account with a Deposit account and makes sure any extra amount lying in your bank account above a threshold limit is automatically transferred to Fixed deposits and you earn better interest on your money.

How ‘Auto Sweep’ works?

This is how Auto-Sweep works. You define a “threshold limit”, and money up to that limit will be in the form of cash in your savings account and any amount above this, “limit” will automatically be converted into a Fixed Deposit and you will start earning normal FD returns on that part of the money. At any point in time, if you need money more than is lying in your bank account, the money lying in the Fixed Deposits is Reversed-sweeped into your savings account and you can withdraw the amount you wish.


Ajay opens a new Savings Bank account with SBI. He enables Auto-Sweep facility on his savings bank account and defines the threshold limit of Rs 30,000 . Now suppose he has Rs 10,000 lying in the bank, He will be earning normal 3-3.5% interest on this money. After that if he deposits Rs 60,000 in his account, his total balance would be 70,000. But as this is above his “threshold limit”, the extra amount of 40,000 will be converted into a fixed deposit automatically and start earning returns equal to normal Fixed deposits with SBI (for example 8%). This way he always has 30,000 in his account for his daily requirements, and he has 40,000 converted into Fixed deposits which again is available to him incase he requires it.

Now suppose he has to withdraw 10,000 from his account, he will actually withdraw it from the cash lying in saving bank , and his balance will reduce to 20,000. However on the other hand if he wants to withdraw Rs 50,000 . then in that case, as his account balance will be just 30,000, an additional Rs 20,000 will be auto-reversed from his Fixed Deposit and he can withdraw total 50,000 .

Opportunity cost

A lot of us don’t bother about how much idle money is lying in our account and for how long. This happens because we think “I might need it soon, so lets not commit to any investment.” But then, the money keeps lying in the bank for months and months and sometimes even years.

Suppose your account has Rs 1 lac for 1 year, it will earn 3.5% interest on it, which is Rs 3,500 for a year. However if you have auto-sweep enabled in your savings account with threshold limit of Rs 20,000, the additional 80,000 will actually be in form of a fixed deposit and it will earn an interest of 8% (assumption). In this, you will earn 3.5% of 20,000 which turns out to be Rs 700 and 8% of 80,000 which is Rs 6,400 , a total of 7,100 , which is almost 100% more than the first case .

A lot of people have much more than 1 lac in their accounts, not just 1 lac. You can earn some extra returns if you just enable auto-sweep on your saving account . So find out if your bank provides the facility, just do it, and get it right away!

Also note that different banks have different names for this facility. For eg., ICICI Bank calls it ”Auto Sweep” , HDFC Bank calls it “Sweep-In” account , and SBI calls it “Saving Plus.” . Here is a list of other banks and the name by which they call this Auto-Sweep facility (thanks for Gopal Gidwani for the info)

  • IDBI Bank – Sweep-in Savings Account
  • Axis Bank – Encash 24
  • Union Bank – Union Flexi Deposit
  • HDFC Bank – Super Saver Facility
  • Bank of India – BOI Savings Plus Scheme
  • Oriental Bank of Commerce – Flexi Fixed Deposit Scheme
  • State Bank of India – Multi Option Deposit Scheme
  • Allahabad Bank – Flexi-fix Deposit
  • Bank of Maharashtra – Mixie Deposit Scheme
  • Corporation Bank – Money Flex
  • United Bank of India – United Bonanza Savings Scheme

Disadvantages of Auto-Sweep Account

Auto-Sweep has some disadvantages too. In general the interest rates of normal fixed deposit and FDs under Auto-Sweep are same, but some banks charge a penalty if the FD under auto-sweep accounts are broken before some duration like 1 yr and 1 day . But I think that’s fine.  If not 8% , you will at least get 7%, still better than 3.5% .

Some banks are also known to give simple interest on the Auto-sweep Fixed Deposits and not compound interest as in case of normal fixed deposits .

Don’t over do it

While Auto-sweep is a wonderful thing for salaried class people who want to maintain liquidity, as well as want to earn more interest on their unused money, one should not over do it. If you are very sure that the money lying in your account will really not be used for long, better to use the normal Fixed deposit or Debt funds. Only if you are unsure of your money lying in bank and when you might need it, you should be using Auto-Sweep facility.

The way auto-sweep works, it makes it an ideal place to park emergency funds . So if you have kept 6 months of expenses as your emergency fund in Saving Bank, then you can enable auto-sweep facility and set threshold limit as 2-3 months of expenses, so that rest of the money can earn a better interest.

Comments: Did you know about Auto sweep account earlier? Do you think it will be helpful for you and do you plan to enable it?

558 replies on this article “Auto Sweep Account – Enable it in your Saving Bank Account”

  1. Hari says:

    How many sweep account sbi offers? i mean i already have two sweep account. now i have deposited some amount to the same account. but It doenst turn as sweep account. why? Is there only two sweep account allowed at a time?

    1. Hi Hari

      This is very specific query which you should follow up with the concerned authority only. We wont be able to comment on that


  2. ashok kumar says:

    Sir how much interest a candidate get on 4 lac rupees in 3 month in auto sweep mod account

    1. Jagoinvestor Admin says:

      Hi ashok kumar

      This is very specific query which you should follow up with the concerned authority only. We wont be able to comment on that


  3. MANOHAR says:

    Sir i try saving account to sweep account online through Net banking but display this msg “There is no transactional account available with your username which can be converted into Auto Sweep for Corporate Salary Account.” please help in this regard.

    1. This is complicated query , hence you need to contact your bank branch for this.

      1. udayan says:

        i received the same msg but activated sweep by going to requests and enquiries and then sweep creation for CSA

    2. Koushik J says:

      Hello Manohar, I am facing same issue. how did you resolve this issue?

  4. Samantha says:

    If more money is deposited in the account where the auto sweep is already active, will the extra money also be auto swept automatically ? How will interest be calculated if the amount increases periodically?

    What will happen if the additional amount (over and above the initial deposit) is withdrawn in between before 1 yr? Will it affect the interest rate?

    1. Yes, it will be auto swept automatically !

  5. chandranarayan says:

    Internet earned in auto sweep account is under TDS? Then can i give 15G/H for this tipes of acount? Is it possible or not?

    1. Hi chandranarayan

      This is very specific query which you should follow up with the concerned authority only. We wont be able to comment on that


  6. satyanarainnautiyal says:

    will TDS apply on this?if yes,will form 15G/H BE APPLICABLE?

  7. AJAY says:

    is there any limit for threshhold…?Suppose I want to set threshhold as 10/-.Will it be ok?

    1. No, it has to be above a limit. check with your bank

  8. yashwantkumar says:

    Multi Option Deposit Scheme or auto sweep facility is not given to clients having their Saving bank account in CENTRAL BANK OF INDIA, I could not understand how this bank can over rule the directives of RBI.
    I want to know is there any autonomy has been given to any of the banks to formulate such things.

    1. You should then complain to banking ombudsman !

  9. Bhanoji says:

    How can I view the Sweep Account ?

  10. anup says:

    Hi Manish,
    Thanks for the excellent post. Very clear and educational.

    My query – SBI has created the Auto sweep accounts for me – without my permission – but I don’t mind that.
    The excess amount from 25,000 in my savings is going into a different FD account every month and I now have 3 such accounts since this facility started in April 2016.
    Is this what it should be? Shouldn’t it go into a singe FD account?

    1. Hi anup

      This is very specific query which you should follow up with the concerned authority only. We wont be able to comment on that


    2. Chaitanya says:

      hi Anup,

      Depending on your bank, FDs get created periodically(usually it is monthly for banks like SBH,SBI) and a separate FD account gets associated with each FD. This will make sure that when you withdraw funds in excess of your existing savings a/c outstanding balance, only the latest FD is broken(since interest accrued would be lesser than older FDs.

      Hope this helps.


  11. Pankaj says:

    hi Manish
    i have 8-10 auto sweep account in SBI, during part term breakout or interest paid TDS has been deducted. i m not understand one thing when i pay income tax yearly, then why should i re-pay for the same in the form of TDS in auto FD’s. is any provision to save this deducted amount.

    1. Hi Pankaj

      This is very specific query which you should follow up with the concerned authority only. We wont be able to comment on that


  12. Vijay Pawar says:

    Hi Manish,

    As you said there are some disadvantages of this facility. Can we transfer money from Auto Sweep account to Saving account? I am asking this because it cuts some amount from account if there is less money in Saving account.

    E.g. I have 50000 in my Auto Sweep account and 1000 in Saving Account. If I withdraw or transfer 20000, it will cut 10 rs + 1 or 2 rs TDS from the amount.

    Also, how to increase threshold amount for the account?


    1. You need to check about this with the bank only because each bank has its own rules

  13. rk says:

    Suppose threshold limit is 25000/- for MOD with Autosweep facility in SBI. My expenses like ECS, credit card payments and withdrawing cash is 50,000/- then how will it work.
    RK Singh

    1. Hi rk

      I am not clear on what is your question. Please repeat it with more clarity


  14. Rahul says:

    As you give exapmple of a person Ajay. lets assume he withdraw a amount of 50000. now i am confused on that remained 20000 money. remained 20000 will be on 8% intrest or 3.5% intrest? what will be the a/c balance? or remained 20000 will be fixed deposit or not?

    1. Vishesh says:

      That remaining ₹20k will be considered as savings account balance n u ll get 3.5% return on that (as ₹30000 is the threshold limit).
      And ₹20k will be now considered as savings balance.

    2. Amount in saving account will be at 3.5% only

  15. Milind says:


    Will my EMI ECS dishonoured if saving balance is not enough but MOD is sufficient to clear it.

    E.g. I have SBI MOD @ 8% of 100000 from Jan upto Dec . In March my balance falls below 20000 which is my EMI .
    Will the ECS be cleared from MOD?
    how much interest will i get on that 20000 and the remaining 80000?

    1. I am not very clear of the answer here !

  16. Lakshita says:

    Hello sir,
    I need to ask you that if any bank interest which is received is not shown in pass book..can we ascertain it with the help of mod balance…that whether it has been credited in bank or not..?This is related to TDS work so please if you can help me out of it.

    1. Hi Lakshita

      Thanks for asking your question. However we do not have answer to your question.


  17. RK says:

    Hi Manish,

    Good explanation with instance.
    I have a problem with MOD balance in my sbi account.
    The available balance is rs.5000/- and my MOD balance is rs.1,00,000/-. Now, I want to pay my credit card bill of rs.65000/- through online by selecting the SBI in the netbanking. The transaction getting failed stating record not found. What could be the reason for this? I guess, the remaining 60k should be taken from MOD balance but its not happening.

    1. I am not sure on this. You will have to check it with SBI itself

    2. PS says:

      Rk, is your problem resolved by SBI? I have chosen auto pay for my bills. I’m afraid I might get into the same problem.

  18. Amit says:

    Lets say I have idle fund of 50K for 3 months…which is better Sweep account or Debt fund ???

  19. Dinesh says:

    Hi Manish,

    Thats a great post and thanks for sharing it. Can we enable this Auto Sweep account with Salaried Savings account ?


    1. Yes you can do that !

  20. AJAY says:


    1. Hi AJAY

      This is very specific query which you should follow up with the concerned authority only. We wont be able to comment on that



    Dear ,

    Really you made a good explanation of this scheme. Thanks. I have enabled an auto sweep facitility in my SB account with SBI. But one doubt, can one change the threshhold limit later?

    1. Yes, you can change the threshhold limit later if you wish to

  22. Ajay says:

    Suppose i have enabled swwep in facility in my SB account with threshold limit of Rs. 50000.
    1. Now if i require Rs. 70000 (i issue a cheque of Rs. 70000, then Rs 50000 would be taken from my SB a/c and Rs. 20000 would be sweeped in from my attached FD account. So after that my account balance would be zero right.. But as most banks have minimum balance requirement, will sweep in also sweep that minimum blalnce portion from sweep in FD account?
    2. Suppose i have a SB sweep in account with threshold limit of Rs 20000. And I wanted to withdraw Rs. 25000 from my ATM withdrawal.. Would it also sweep in from FD when required for ATM transaction?
    3. Also, I have an EMI payment evry month. Suppose I have a sweep in SB bank account with threshhold os Rs 50000. My current balance in SB account is Rs 25000. And My EMI is Rs 35000. When the date of EMI comes, would the system automatically adjust to pay my EMI with Rs. 25000 from my SB and and rest of the Rs. 10000 from my sweep in facility for EMI payment.

    1. 1. No bank forcefully keeps the minimum amount . SO yes, full amount will be deducted

  23. sandeep says:

    Hello Sir, Thanks for information. I have a doubt. As you said, we can set a threshold value above which our money will be treated as a FD money. Then one who wants to use this facility, should set the threshold value as low as possible (for example Rs. 100) so that his maximum money will get FD interest most of the time. Am i correct? Or Do i have some misconception about this facility? Please explain..
    Thanking you in anticipation….

    1. Hi Sandeep

      It works differently in all banks. I suggest put a mail to the specific bank where you have the account.

  24. SR Shinde says:

    In PNB no correct informations are getting. Management to look it in to very seriously . Nex time I will give wide publicity

    PNB SB A/C at Pashan Branch

    1. Thanks for your comment SR Shinde

  25. CSahu says:

    I want to sweep my saving account of PNB. level for Saving balance is to be 5000 & fix deposit for sweep account is 70000. is this facility is available in PNB.

    1. It would be there, but with some new name . Check with them

      1. Mallikarjuna says:

        I was not aware of this feature..!! Thanks…!!

  26. hana says:

    My available balance is 16k and available balance is 5k, does that mean that the total amount in my acc is 21k..

    1. hana says:

      Sorry mod balance is 16k and available is 5k

      1. Lokesh says:

        It means you can withdraw up to 5K and if you try to withdraw >5K, your MODS will break.

  27. Raj says:

    Sir i am not able to convert my sbi saving account to sweep account.
    After click sweep account there showing a message ” there is no transaction account with your username
    Please give me best suggestion


    1. Hi Raj

      This is very specific query which you should follow up with the concerned authority only. We wont be able to comment on that


  28. Sreekanth says:

    Hi Manish,

    I have savings account in SBI with home loan attached to it means, every month my home loan EMI will be deducted automatically from my savings account. If I put my EMI money in the account and enable sweep-in facility, whether that can be transferred from flexi FD to EMI automatically when my EMI date approaches??

    1. I think dont do it . It will get complicated

  29. Pabitra Maji says:

    What I can withdrawn money anytime through atm if my account is auto sweep account and if having money also available in my account ? Sir please given information me !

  30. Shishir says:

    I have an auto sweep account with SBI. How do you find the total balance in savings account? And also, beak up of how much is in sweep account and how much in savings account?

    1. Hi Shishir

      You need to get the records and find out yourself , There is no auto mated way of doing it

      1. Devendra says:

        On login into your account. Go to account summary.
        In Transaction Accounts “Click here for last 10 transactions” then MOD Balance will be your total AutoSweeped Money
        Also in Deposit Accounts the AutoSweep and Normal FDs booth are displayed.

  31. AJIN says:

    Does federal bank provide sweep in facility ?
    How much is the interest rate for the amount that gets sweeped in SBT?

    1. Hi AJIN

      This is very specific query which you should follow up with the concerned authority only. We wont be able to comment on that


  32. MANPREET says:

    Dear Sir/Madam,
    i am a Salaried Person with Montly income of aorunf 25000 and 1 lakh maintained in My Sbi Account. I will have loan amount of Rs 100000 in my Account. I am interested in Converting into Sweep Account. So is it Benificial to Convert my Account into Sweep in as i have to Use Most of the Loan amount.
    Pls Suggest.

    1. Yes, you can do that

  33. Yash Pathak says:

    Dear sir i have rs 80000 in my sbi saving account i want interest on it but i cant do fd of it cause in some emergency sitution i need it alll money so wht shall i do ? can i convert it into sbiplus account ? and can i get all money from sbi plus account when i need it in emergency setuation? so plz guide me i m so confused sir

    1. Its better to make 50% of it in FD and rest in cash in saving bank

      1. Shree says:

        Thankyou it was really useful to know about it… Intrestingly the disadvantageous part

  34. ilyas says:

    thanks for the info..

    i want to know is there any acknowledgement for the amount that is available in fixed account???

    as one cant remember the total amount that is getting sweeped///

    1. I am not sure on that

    2. Gaj says:

      Yes, there’s an acknowledgement for the amount that is available in fixed. It is shown in passbook separately with other liquid balance. For example, ” Closing balance 25752 and 5,25,000 in mods / sweep / FD.

  35. Ramakant says:


    1. Hi Ramakant

      I suggest that you now take the RTI route. You can file the RTI and ask your queries to them. THey are bound to reply you on your queries.

      Its a bit long cut, but works well


  36. Nitin Singh says:

    Do you have any idiea about the facility providing by SBI? As i went there to inquire , but still not got clear picture, though now i am clear very much after reading this article . I just want to know about the SBi service.

    1. Hi Nitin Singh

      I am not aware of the exact name they use. BEtter check their website or talk to customer care. In worst case, find out from RTI !

      1. Ashish says:

        Hi Nitin
        I found this service also in SBI.
        If you have net banking in your SBI A/C you can activate this facility online no need to go to bank.
        For this logon to your sbi and go to fixed deposit tab and then you will found Auto Sweep Option
        click on that select your account and enter OTP & fallow next steps as you wish.

        Hope this help you……….

  37. irfan bhat says:

    I want to know like i hav a bal 50000. Then sbi sweeped 25000 then the bal was 25000. Now i withdraw money all. But my account show nil balance. When and how my money will get into my account back?

    1. I think the moment you try to take 50k , it will be in your bank account


  38. vinayak says:

    in which bank there is minimum saving account deposit to maintain this feature

    1. I think any PSU bank will have a lower limit

  39. nabarun says:

    in SBI my threshold limit is 25000. So i want to know that whenever my balance is crossed the limit then the extra amount is sweeped? or after a particular time the money was sweeped?

    1. I am not clear on your query

    2. Shailendra says:

      Either on month basis or week basis. Whichever you opted for while opening this account.

  40. nabarun says:

    can i get a separate passbook for the auto sweep account in sbi?

    1. Only SBI will be able to answer that

  41. Abhi says:

    SBI – Does “saving plus” a/c passbook says – Saving Plus ?
    As I have regular saving a/c with SBI. Opened new saving plus a/c too.
    Both passbook . 1st page , a/c type says – Saving a/c
    Doesn’t it should say “Saving Plus” in case of saving plus a/c ? Also since it is autosweep , should it open FD / eTDR automatically ?

    1. Hi Abhi

      Your cases is a bit complex and I think we are not the right people to comment on it.

      My suggestion would be hire someone who is professional in this area and consult them


      1. Abhi says:

        Thanks Manish.
        For my SBI saving plus a/c. autosweep worked automatically.
        Indian banks don’t differentiate a/c type on passbook. There should be column on passbook where it should clearly say a/c type – regular , premium, saving plus , titanium etc etc ..

        1. Glad to know that Abhi ..

  42. M Hari Krishna Chauhan says:

    Hi Manish,

    Very useful information. I have few questions reg this MOD and when I was searching on google I got a chance to visit your site. I hope u will be able to help me in understanding these MOD in a better way.

    I am holding a account in SBI which is a salary account.

    First thing, the bank didn’t even inform me about this account and on a fine day I saw that there is some discrepancy with my amount. Went online and saw that the 15000/- was moved to a different account. I called the cust care of the bank and when enquired they said that it is a MOD account without giving any further information they closed my call. Now when I was reading the article and few comments, I see that a form needs to be submitted (15G 0r 15H). Can you please help me understand what is these form and is these MOD really useful or will I face any consequences when I really need the money back.

    Please Yaar, help me in understanding.


    1. Hi M Hari Krishna Chauhan

      Please read this on Form 15 – . I am sure this will help

  43. SONIA RAJ says:





    1. Thats the problem with auto sweep in account


  44. subhanka77 says:

    what number of transaction(withdraw) is allowed in saving account per day or per month @ SBI as i do mobile top up a lot using net banking sometimes 2 top up a day?

    1. There is no limit on the number of transactions !

      1. subhankar says:

        thanx manish!

  45. anil says:

    what can i do for more interest want in saving a/c or f.d

    1. If you want safe returns, then nothing better than FD .. else you can put money in equity for long term !

  46. Very informative article Manish. It will help many.
    This will help many individuals who usually keep more amount in Savings account for short term needs. This is a good option for keeping the emergency fund which ensures better return and easy liquidity using the ATM card.

  47. Hem says:

    what is the name scheme for auto sweep FD in BOB, Dena Bank and Canara bank?

    1. Search for it on google

  48. Arun says:

    Thanks for the detailed explanation about the Auto Sweep functioning in banks, because this is the first time i got a message from banks that my account was debited and the transfer is somewhat sweep tfr in sbi. at 3 o clk early morning. i was shocked , because i did not done any transactions on that day. i was confused and strucked for a while .

    after that i thought , y dont we search about the problem in internet and browsed . nw i am clear about the auto sweep function in banks.

    Thanks for the detailed blog

  49. Rishabh says:

    Very nice article Manish.
    I have enabled MOD in my SBI savings account. Sweep in works absolutely fine. The problem is with the sweep out i.e money above a certain threshold being converted into an FD earining 9% p.a. I have 35k currently in my savings account, rest of 1.2 lakh is already in mod. I have no idea when the bank will automatically sweep out 25k from my account into MOD account? I have called up customer care and they say they have absolutely no idea about the dates when sweep in happens. But he told me thatthe threshold amount is 10k. Do you have any idea about the date when the excess amount in my account will be swept into my MOD account? I read on a site that it happens on the 30th of every month, another website says 15th and 20th of every month.

    1. I have no idea on that Rishabh !

  50. Pravin Praksah says:


    Very knowledgeable information
    I want to active sweep in facility in CANARA BANK. How this possible. I contact to bank but bank not provide me satisfactory solution.


    1. Use RTI and ask this question !

  51. Kshitij says:


    I have recently converted my SBI account to SBPlus, now every Wednesday, They will sweep excess amount,

    Now problem is in internet banking under deposit accounts i can see only first two SWEEP DEPOSIT Accounts, Although i have total 4 Sweep deposit a/c s now, Visited several times to branch but seems they are not able to help.

    Was this the same case with you, if yes any settings in onlinesbi which hides it ?
    *In main SB account i can see total MOD balance but not separate SWEEP ac/s

    Please help.

    1. As its with SBI , you can take help of RTI !

  52. Gokul says:

    Very Informative Article. Good Work. Thanks !

  53. Bala says:

    I want to activate that to my existing account. I want to know what if the total amount above threshold level is with drawn after 2 months. Will the interest credited?
    What are the charges for Sbi for mod, if any.

    1. Hi Bala

      There are few things, which you can get info about only from the customer care of SBI

  54. sandeep kumar jain says:

    I already have a saving bank account with HDFC Bank. Can I take the facility of auto sweep with my existing account or I would need to open a fresh account.

    1. Yes you can, contact HDFC bank and talk on this .

  55. prasanth says:

    Lets say , I opened a MOD (100000/-)in SBI on Jan 1 , 2013 for 1 year.

    I withdrawn 50000/- on 28 of march 2013(after 3 months).

    I withdrawn 30000/- on 30 of june 2013(after 6 months).

    I widhrawn 20000/- on 30 of september 2013(after 9 months).

    Amount in first 3 month , 100000/-
    Amount in 4-6 months, 50000/-
    Amount in 7-9 months,20000/-
    Amount in 10-12 months,0/-

    How will they calculate interest for this premature MOD?

    When will the interest credited back to my Savings account(only after one year from the date of joing or after 9 months or after each transaction from MOD account)?

    1. Hi Prashanth

      This question is for our forum

      1. prasanthv says:


  56. subhanka78 says:

    Actually my bank took 36hrs to convert a/c into mod , now i can see my mod balance.

  57. subhanka78 says:

    I have applied for SBI MOD at branch on 24/03/2014 but till now i cant see any MOD balance on account statement page online . I set threshold limit 5k and my current Saving account balance is 23K.

    please help regarding this issue.

    1. subhanka78 says:

      but my account description changed from SBCHQ-SBP-GEN-PUB-IND-NONRURAL-INR to SBCHQ-SBP-GEN-PUB-IND-ALL-INR but mod balance is 0.

    2. BEtter open a question thread on our forum –

  58. Ramesh says:

    Its the first experience with saving plus account in sbi, with min threshold of 5k.
    I had 35k in my account on 28 feb.
    But today on 1 mar 14, it is main bal INR 5598. and i get MOD balance of INR 30k.
    I am looking for the following answers in context of SBI bank.

    1. with main Bal 5598, MOD bal 30k. If i deposit 4k. Will this be credited into MOD or main bal?

    2. with main bal 5598, MOD bal 30k. If i withdraw 4k, will this be debited from MOD or from main bal? If from MOD, then oldest FD(of 10k as mentioned in sbi website) will be broken OR the latest multiple FDs (of 1k as mentioned in sbi website) will be broken?

    3. with main bal 5598, MOD bal 30k. If i withdraw 10k, Which FD will be broken? latest one or oldest one? If there is any penalty for it (as withdraw > 5k). If so what is the panalty?

    4. with main bal 5598, MOD bal 30k, if i withdraw 33k, What will happen to my account? what will be main bal and MOD bal? Will there be any panalty? If so what will be the panalty and for how much period? How much period will be given to me for deposit more than 5k and avoid any further panalties?

    Thanking you.
    Waiting for your answers on mail or here.


  59. Sumit Desai says:

    I recently had a shocking experience with SBI Saving plus account. A fixed deposit of some initial amount(I don’t remember what was the exact amount) was auto-generated in my saving plus account. I kept on withdrawing money from it. It’s maturity was on today , 1st March, 2014. The amount remaining in this FD was Rs 1000 and the interest which I was going to get was Rs. 90. But, after the expiry, only Rs 792 were credited to my main account. It is showing Rs 382 as the tax deduction. I saw it through internet banking under Closed accounts section. I don’t understand how can tax of Rs 382 can be deducted on Rs 90 interest?
    I live in a different city from the one I am having this account in. So, I can’t go and ask about it in the branch. Can anybody explain what might be the reason behind this deduction?


    1. Yes, this is weird . its not right to comment on this without knowing more details. Its best to talk to customer care on this and talk to them about the reason. Let us know what they say ?

  60. ASA says:

    Iam able to withdraw money gone into auto sweep account through ATM. But when i want to do internet transaction /payments etc the money in auto sweep account is not available so i can’t make payment more than that is available in the savings account, even though i have balance kept in auto sweep account. How this issue can be solved?

    1. I dont think that will work . You can only withdraw from ATM for this bank of yours . Can you check with bank on this

  61. Abinaya says:

    Hi Manish,

    I went to deposit some money in SBI and the manager who works there suggested to convert it into savings plus account and he did all the formalities. While noticing the procedures he did I found he added two threshold limit, one for Rs 5000 and the other for Rs 1000000. Please clarify as to why there was two threshold limit if you have any idea about it.

    And also I told him that all the money I deposit in this savings account is from my salary and I have TDS at office, so I don’t want any tax to be deducted. The manager gave me FORM 15-G and asked me to fill and give once the savings plus account is activated(he said if I fill that form and give they will not take any tax and just see if we pay the taxes from our PAN number) he suggested me to submit the FORM 15-G. This form should be submitted every year April 1st week to avoid tax deduction it seems.

    Great work done by you in educating people about financial planning!….


    1. Thanks for sharing that. Yes now no tax will be deducted directly from bank account.

      I have no idea on those two numbers filled by him at this moment, its good to get it clarified it from him itself !

  62. Prerna says:

    If i have opened a RD in my account, apart from the sweep facility turned on, and there is a standing instruction for RD, but there is not enough money in my account. Will the money be reverse sweeped into my account so that the RD premium can be paid? How does SBI handle this?

    1. I am not sure on this , its very specific query for SBI .. Better ask it at their customer care !

  63. Manish says:

    Yes bank has enabled sweep in facilty on FD. Like if one does an FD for 2 years for 2 lakhs and after 1 year is in need of 50K. So sweep in facilty can be enabled online on FD and 50K can be withdrawn from it (Interest on 50K will be for 1 year and 1.5lakh will remain in fd). This could also act as a emergency fund as in 5-10 mins i was able to withdraw money from my fixed deposit.

    Does any other bank gives this sweep in on FD?

    Which one is more beneficial opening a saving account and enabling auto sweep or opening a FD and going for sweep in case of emergency ?

    1. Hi Manish

      If YES BANK has this facitlity ,then I think its a good idea to open a FD and enable Sweep in with that, Note that consider this as your emergency fund only 🙂


  64. ASHOK says:


    I do not know how to set the threshold in SBI. I tried to make Multi Option Deposit Scheme in SBI and it is asking amount..I thought it is thresold, but after making the deposit, it is showing as Principal amount. Whereas i have more than 80k in my SB account.
    So, please guide me how to set the thresold in SBI..

    1. Hi Ashok

      I am not having SBI account, better put this query on our forum so that other SBI account holders can help you –

  65. Vishal Thakur says:

    How can I set threshold limit using SBI Internet banking ??

  66. Dibya says:

    Hi Manish,

    Thanks for this blog… a really helpful one for me. I have converted my main savings a/c to an auto-sweep a/c after reading your blog. Can you clarify me the following please:
    1. I have set a threshold limit of 10,000/-. My savings balance is now Rs 5000/-, and the sweep-in a/c has balance of about 50,000/-. Now if I withdraw Rs 15,000/- then my savings a/c balance will be 0/- and the Fixed-deposit a/c will be debited by Rs. 10,000/-. So will the remaining 40,000/- in FD a/c, go on earning interest at the FD interest rate?
    2. Will my savings balance increase in future? If so, how?

    1. Yes, in most of the cases this is what happens . 40k deposit will again be there and earn FD interest , but you have to enquire at bank level how they handle it .

      Note that all banks deal with this concept differently at minor level


      1. Dibya says:

        Thanks for ur reply. Thanks a lot. Well, should I treat my mod a/c as an investment in FD / or it’s a basic misconception?
        The auto-sweep a/c interest will not enjoy 80TTA Tax benefit, whereas, to get benefit under that section, interest rate will be much less [S/b a/c rate ~4% in SBI]. So how should I make the trade-off during threshold value decision?

        Well, I want to invest for wealth creation. Pls let me know what should I consider, and how can I build up a good investment portfolio with minimum risk factor.

        1. Yes its true that you will not be able to get the exemption , but then even with tax your returns would be close to 6.5% in the FD

          1. Dibya says:

            Thanks Manish! Your suggestions and way of speaking is superb!

            I want a chat session with you, so that I can ask you regarding how should I build my investment portfolio. Please let me know how and when can we chat.

  67. samrat says:

    i want to know that any demerit or problem will occur during withdraw and once we withdraw all amt. then again when we deposit it then auto sweep will active automatically or not…..!!!!!!!!!!

    1. Yes, it will get created again even if you have withdrawan it once !

  68. Sajan says:

    So what is the banks profit in this ?

    1. They get FD ! . they can use the money to lend others .You need to understand how banking works !

  69. Ganesh says:

    Thanks Manish 🙂

  70. Ganesh says:

    Hi Manish,
    Thanks for this info.

    Unknowingly I had enabled this option while opening my SBI account. I was shocked to see my balance suddenly going away and that’s how I reached this blog (Thank you so much for helping people).

    But seems now I cannot move the fund back in my regular account via netbanking (in case I require to transfer an amount online to somebody from my SBI account). I raised a ticket with SBI and they are asking to contact local branch!

    My questions:
    1). Can I move back the fund online back to my regular account? (The e-FD options says there are no FDs for premature closure).

    2). If I issue a cheque to someone will the bank be paying the amount (from my total actual deposited fund)?

    Thanks in advance…..

    1. I think you cant break it online (only offline) , but if you issue a cheque or want to withdraw the money through ATM, then its possible .

  71. Hansraj Deshkar says:

    If I had 3-4 FDs in form of MOD, and I withdraw some amount then which FD will break ?? The first one or the last one ?? as already the amount of interest accumulated in the first one is higher….

    1. It should be first one logically

  72. Pawan Shah says:


    Do MOD scheme is only applicable to Salary Account Holder in SBI. Cant it be open by Saving Bank Holder


    1. YEs, you can open it

  73. Pawan Shah says:

    Lets take a example : I have 50,000 and the threshold limit i have given is Rs 10000, now the remaining 40000 will be treated as FD. Now will i continue to get interest of savings account of Rs 10000 and suppose 1 day i require Rs 45000 then as said the FD will not be applicable so after that will i continue to get interest rate of saving account or not.
    Pawan Kumar Shah

    1. You will get FD rates for the time its created as FD and when it gets broken, it will get Savnig rate

  74. Anurag Batra says:

    Very informative article.

    I am unable to find details about it after logging in to my icici personal account.
    Anyone with an acc in ICICI pls tell me the path for available options for autosweep.


    1. Talk to customer care on this

  75. sujata says:

    Really these are valuable information for common people. Many persons are not aware of these type of information.

  76. Sathish says:

    Hi Manish,

    That was again a neat and detail post by you.
    I would like to open savings account in Yes bank and get a sweep-in option attached to it. How exactly my sweep in option works if i give threshold limit of 1 lakh, consider i am having 2 lakh in my account (above 1 lakh, they are giving 7% interest).
    i am little bit confused as to opt for sweep in to get 7% interest (min) or to park my amount in savings bank itself to get 7% interest (guar)??
    please guide me in this context.

    1. In case of YES bank , anyways you get 7% interest I believe ?

      1. Sathish says:

        So in this case, bank savings interest is best when compare to sweep in option correct Manish??

        1. Yes, it might be a little less, but worth!

  77. Manisha says:

    Hi Manish,

    I have SBI saving+ a/c and my auto swap has happen exactly 23months back. Now, I have withdrew all my money after 23 months.
    Bank has calculated interest of 8.5% for 1st year and the same has been credited to my account after completion of 1 year, however the rest of 11 month the interest paid was only 5.5%.
    I think I have been cheated by this saving+ ka thing…because my money was there all 23 months with the bank and I should have been paid interest of 8.5% for entire 23 months ..what is your opinion on this?
    Thank You..

    1. Can you check if this was a yearly FD which gets auto renewed ? Because if thats the case, then for next year it was not FULL year. Check for the explaination by bank on this !

      1. Manisha says:

        Thank you Manish for prompt response…

        Yes, It was yearly FD which got auto renewed last time once the previous year was completed. Now, I understand why it was not considered as full year. But I wondering how this has happened because I have not given any guideline or instruction of one year FD.
        But definitely, I will check this with the SBI home branch .

        Thank you for help..

        1. It mush be DEFAULT 🙂

  78. rohit kumar says:

    i have a/c in sbi and want to start this scheme.for this i need other new a/c or this facility can be start in old a/c?????

    1. It can be started in same account. BUt before anything, check is SBI has this !

  79. Amit says:

    Hi Manish,
    your explanation gave me a very good idead about mod balance and saving plus account but i have one issue to discuss
    i have opened a saving plus acccount last month with 75k, now its having 50k, with mod balance showing 50k, now i have deposited 20 thousand into my saving account but it is not seeping to FD as my thresold amout is 5k only as they said when saving plus account opend.
    does it takes time to seep to FD from saving or i need to ask to customer care?


    1. Hi Amit

      this is very much an issue which only bank can explain . Kindly meet someone in bank and tell them you need answer else you will move to banking ombudsman

  80. Bala says:


    how to transfer money from the sweep account to my savings account.. i want to pay online bill.. so i need more money than i have in my savings account.. in this case how we can use sweep amount..

    1. You will have to break your FD in that case !

  81. Mahender says:

    Autosweep scheme is a very good scheme

  82. Surya says:

    Hi Manish, It was nice article. I am using this facility and earning interest so need to pay tax also, so I searched many places that how should we pay tax on below case.
    I have salary account and after threshold limit all amounts are going into auto sweep FD. So whenever I am withdrawing amount more than threshold amount then by default my Auto sweep FD is getting break and then I am getting interest for the days money held at bank(with penalty) and even they are deducting 10% TDS also.
    Now here is my query I have to pay the remaining 20.9% tax (I am in 30% bracket). But from April to Jun suppose I get only 4000 interest then do I need to pay any advance tax on 15th July and if yes then how much? Should I pay advance tax for projected interest (assume 20k) for financial year or only for 4000/-

    Thanks in advance

    1. Surya

      You should open a thread to discuss here –

  83. Raghunath Rajendran says:

    Hi Manish,

    Your article was simply written for something which all bank account holders should be aware of. I came here as I was looking for more info on how this works… {you know the lack of trust when something seems simple.. you wonder how the bank makes money on it… hence the lack of full trust 🙂 }

    So, I thought I will add another question to this, as I couldnt find it in the comments too…

    I keep Rs 1 lac in my Savings account, which another Rs 1 lac is in ‘sweep-in’ FD of HDFC … 6 months latest, I withdraw 1.5 lac from my savings, so Rs 50000 gets ‘swept-in’ and now I am left with Rs 50000 in my FD… As I understand, Rs 50000 (remaining) earns a full FD interest (say 8%). While the other Rs 50000 (withdrawn in 6 months) earns me either (a) no interest , or (b) savings account interest, or (c) FD interest rate
    .. I am keeping the case of the penalty charges separate.. but if we include that in the scenario also, how will this plan out?….

    Note – I am thinking of the Sweep-in facility, but I know I will have complications in opening it up through netbanking, coz my account is held jointly. Till then, the clarifications will help.

    Looking forward to the clarification….


    1. Hi Raghunath

      This needs discussion , please open a thread on our forum –

  84. pratap kumar mohanty says:

    Is there any restriction for a minimum balance one must have before opting for auto sweep? If so what is the minimum amount? During this transaction what amount would be showing in SB pass book when I am having total balance of Rs.80000/= and leaving Rs.5000/= rest I opted for auto sweep.


    1. It can be told to you by your bank only. different banks have different limit

  85. Pinaki says:

    @ Nanda & Swathi
    You can not do it with internet banking.You must visit your home branch and ask for auto sweep application form.In that form those two data is to be filled up.You have to submit it to that branch.


  86. Rajesh Saini says:

    Auto sweep is a great option to earn more interest . and also thanks for explaining it in a very simple manner

  87. Sachin says:

    Hi Manish,
    Nice article. Auto Sweep-in is an excellent service , I was not aware of it.
    Thank a ton for this post. I have a question here…

    Can an EMI payment(through ECS) can auto reverse the amount from FD or the emi payment will be dishonoured due to insufficent balance?


    1. I am not very sure on that Sachin.. you will have to enquire this from bank itself .

  88. swathi bomma says:

    How can i set threshold amount and sweep date in SBI.
    kindly please say the steps.

    1. Not sure of the exact steps. did you find it in internet banking or not ?

      1. Swathi Bomma says:

        no i dint find it.
        i need to set the threshold amount and date.
        Please can you say how should i do it?

        1. Nanda says:

          Hi Swati… Did u find out the solution for this??…
          I am also waiting for the answer…
          Kindly lemme know if u know the steps for setting threshold limit
          Thanks a lot

  89. Pintu Francis says:

    Thanks very much for this informative note.
    I was searching to know about the SBI Savings Plus account and i found this very useful.
    I have a doubt.
    I have started a SBI Savings Plus Acc.(Salary Acc.) and set the threshold to Rs.15,000. and sweep time as 10th of every month.
    My question is that, When will the bank calculate the surplus amount that is to be tranfered to FD? As soon as I deposit more money than threshhold limit (in my case money above Rs.15,000) or only at the auto sweep date(10th of every month).
    What is the significance of this auto sweep time?

    1. I think it will happen as soon as your balance goes up ..

      1. Pintu Francis says:

        So is there any importance in the sweep date??
        It is asked in the account registration form rite?

        1. It might be the date when the actual creation of FD happens

          1. bhanukiran says:

            It happens on sweep date.. not when balance goes above threshold

    2. Pinaki says:

      In your case the money will be swiped 10th of every month at 24:00 hrs.

  90. nikhil says:

    I want to start this facility for my PNB acount . I checked this link
    ( ) for information but couln’t get it. Can you please explain by an easy example. your help would be greatly appreciated 🙂

    1. What point are you not getting there ? I think its clearly said that above 40k , it will be converted into FD’s .

  91. Shreyas says:

    How do i make an accounting for Auto sweep transaction in my books.?
    pls suggest some guidelines
    thanks in advance

    1. Yes that will be a little tough , just track your monthly statements !

  92. CHAMPA JOSHI says:

    My Saving Bank Account No. 30840499305 present in SBI, Lohaghat, District Champawat (Uttrakhand). It is therefore requested to provide Auto Sweep facility of my account please.

    1. You have confused us with SBI bank I guess , we are not bank 🙂

    2. Satya says:

      And you should not disclose your Account Id like this publicly.

  93. SujabB says:

    Thanks Manish for this great article.
    I had my SBI savings account converted to “saving plus account”, back in 2009. My experience with the facility was quite good as I generally deposit in the account, and withdrawals were few and far between and through cheques.
    Problem starts from Feb 2012, when the auto sweep stops suddenly without any notification. I did not tried much to restart it, as I can create FDs through net banking. But recently when I made a written request to break the linked FD accounts the problem resurfaced. The bank officials are saying that, they are trying to resolve it and have sent the matter to “data center”, but were unable to provide any timeline.

    1. Kiran says:

      open a ppf acount

    2. Ask them a deadline after which complain to banking ombudsman !

    3. BKM says:


      The timeline and experience you shared exactly matching with mine.My branch also not able to restart it.But they will not accept that it is their fault.They repeatedly asked me for address proof showing ridicules theory that if KYC is not proper auto sweep not possible.Even after multiple times of submitting the document they could not start it.Every time I visit they will make storm with keyboard and tell from next threshold date it must happen. As usual one month will pass with no result. By this way one year is gone.One of my co-worker complained it from SBI site. After one month SBI closed the complain without resolving it.
      I asksed PNB & BOB for opening auto-sweep accounts but they says that they have discontinued those type of account. Only ICICI and HDFC can open this kind of account but with TnC way impractical.

      With this experience I am getting a signal that banks are intentionally discouraging autosweep in non transparent way.If it is their policy they should disclose it also.

      Requesting Mr. Manish Chauhan to please investigate and update this topic if required.


  94. Subhash says:

    My Saving Bank Account No. 30446182309 present in SBI, Kathghat, District Moradabad (UP). It is therefore refquested to provide Auto Sweep facility of my account please.

    1. How can we help you , we are not the bank !

  95. Arif Antapur says:

    Hi Manish,
    Thank you for your simplest explanation after reading your article I have changed my SBI savings to SBI savings plus which means MOD in SBI this month. I have given threshold of 8000.Bank has confirmed that it is done.I have following queries.
    I want to know how can I check the same online?Still I cannot see any new account created.
    Also please let me know can I transfer funds from that account to own accounts or other accounts online in case of urgency?as we have option to withdraw anytime the all amount from ATM.
    If I withdraw my MOD will continue or will be closed?
    Thanks in advance

    1. It will still continue if you withdraw more money in emergency ! .. For more details , better read all the comments , its already discussed somewhere or just start a new thread on our forum –

  96. chita says:

    what is the difference between mod account and savings plus account in sbi

  97. Sheeba says:

    I have a 555 days FD which is maturing next month. How can I know if it will be 1 time investment or auto renewed for another 555 days again?

    1. You should have choosen that at the time of opening. By default its just one time and not auto renewal . Talk to Bank customer care , they will tell you about this !

  98. dushasan palei says:

    please send me a link about how to generate auto sweep facility in state bank ok india online

  99. atolani says:


    Today I called in ICICI to enable autosweep in my account & was informed that ICICI has discontinued this service. This service was introduced in 2008 & is now discontinued. Executive informed me that they have introduced a new scheme money multiplier instead of auto sweep, Which is similar but we have to create temp. FD’s manually (Yes, Its a turn off) I didnt opted for that, because I felt creating FD manually everytime I have surplus is too much.

    More info is here

    1. that might be the latest development ! , thanks for sharing it with all of us !

  100. Bikash says:

    Hi Manish,
    Tell me about re investment plan.I have seen this chart in SBI.ex Rs 100 6 months 103.5306.what does it mean?If I want to invest Rs100000 for 6 months.what will be maturity amount? please clarify.

    1. Bikash

      What plan is it , kindly explain a little detial

  101. Bikash says:

    I have seen the RD do not attract TDS by banks. some banks offering variable RD. if i give the 1st installment of Rs 300000 and then Rs 100 in each month will it attract TDS. Is is better than to invest Rs 300000 in FD to avoid TDS? thank you

    1. I dont think variable amount is possible in RD , for FD TDS is always there if your interest is more than 10k in a year !

      1. Bikash says:

        Hi Manish,
        Variable RD is possible in some banks like UCO, INDIAN BANK etc.In UCO bank the scheme is known as UCO SOWBHAGYA RECURRING DEPOSIT SCHEME. ?Now you please clarify your answer.

        1. Ok , never knew that ! .. thanks for that information !

  102. Bikash says:

    Hi Manish,
    I have opend a FD of Rs 150000 at 9.75 interest rate for the period of 1 yr at the middle of a financial year and opted for quarterly interest payment to my SB account.That mean i ll get two installment of interest payment and that ll be less than Rs 10000 in the current financial year.will the bank deduct TDS in this case?

    1. No , it will not 🙂 . good tip !

  103. soma says:

    Thanks for posting the article. However when I checked with my Financial advisor he adviced me to go for IDFC liquid funds rather than the sweep account as it gives better rates plus tax free and easy to transact also(just by sms). Can u throw light on this?

    1. Soma

      Yes he is correct in a way .. Note that this article just gives information , its not a comparitive article

      1. Francis says:

        Dear Manish,

        Return from liquid fund is tax free? Pls guide soma properly.

        1. No , its not like that .. Its taxable

  104. Shree says:

    I have heard about this and was not aware in details.
    This article is very much helped me to know more about auto sweep.
    Yes I will enable this option for my account by this week end itself.

  105. amit says:

    Dear Manish,
    I have SBI Auto sweep Saving account. I have a query regarding account balance.
    As My MOD balance is showing: 390000 rs and my account balance including all deposite account is 324425 rs. How they are not same. And i have even calculated and add the intrest as well. But still the figure is not matching. plz reply.

    thanking u
    amit baheti

    1. Amit

      Can you explain in more detail .. I request you raise this query on Forum :

    2. Pankaj Sharma says:

      Hi Amit,

      i am also facing the same.My MOD balance shows 20k more then the sum total of all deposit and account balance.
      if you know can you let me know how system calculate MOD balance.

      Pankaj Sharma

  106. pandaba ku singh says:

    Dear Manish,

    I am banker and impressed on your suggestion regarding solution on banking problem is very much attractive.plz continue in this way as u r having .
    one thing can u provide me ur cell no when i will be in need i may contact u,

    thanking you

    p k singh

  107. Sheeba says:

    Hi Manish

    Thanks for the previous answers.
    I have a “minor” account for my daughter and it is operated by me.
    Can I enable Auto-Sweep (Multi Option Deposit Scheme) in Minor acct?
    Also I’m not able to create eSTDR/ eTDR for the Minor acct. Can you help me?


    1. There are a lot of restrictions from banks on minor accounts , whatever banks say about your question should be considered as FINAL .

  108. BKM says:

    Hi Manish,
    Thanks for this beautiful article with a noble cause of educating the normal savings account holder about auto sweep facility. In the comment section there are some geeks challenging the efficiency of this product comparing them with MFs (non equity) and more attacking you as less known person. Hope and believe this will not bring you down and keep you away from good initiatives in future.
    Let me share my experience about auto sweep account in SBI. I am using it since 2008. So far it was fine experience. I find two issue with them.
    1> By default they will enable it for 12 months. There is no option ( though in papers) to me to select activation period. After using it for 4 years in different interest rate scenario now I can guess the reason. You have to apply for renewal every year. If interest rate is low they will kindly approve. If rate is as high as 9.25% (as it is right now) they will not reactivate it. Surprisingly they state ridicules reason for this (obvious all verbal) like a> system is not accepting right now. B> your KYC is not proper (even after submitting all document three times) c > you must have another SBI account in India where same PAN no is given. I came to know informally (from bank only) they have management directive to discourage customer to use auto sweep.
    2> They will never update 15G form in system. So whenever FDs breaks they will deduct tax. In last three year in these way lot of tax is deducted at source. In my case it counts. Upon asking they are telling they accidentally missed my form to enter. When asked how that happened all the last three years they were silent. Actually if you use if well there will be new account every month. So you have to deposit 15G every month. For these case they even have the system such that if you give 15 G in the beginning of a financial year all subsequent mod accounts need not 15G separately.(to believe it you should not ask for the source because the system software SBI is using developed by software giants and are most unlikely to miss that out). Knowing the existence of this also they will not provide this facility to customer saying this facility does not exists. Only intention for this behavior to keep you away from auto sweep account. This will only change if interest rate going down.
    3> Due to my recent frustration on SBI I am now looking for another bank who may provide auto sweep without any charge to its savings account holder.

    1. Better move to another bank , but i would say you also have option to complain to banking ombudsman about this behaviour from SBI and I am sure it will be heard , it can take some time though ! 🙂

  109. manoj says:

    what is the basis of interest payment under MOD scheme and when the interest will be credited in my saving account?
    my saving a/c is salaried a/c.

    1. Please ask your question is more simple manner with simple language

  110. Sheeba says:

    How can I withdraw money / break a specific SBI – MULTI OPTION DEPOSIT ACCOUNT?

    1. Sheeba

      You can just go to the branch and ask them for the breaking of the FD , Is there any issue you are facing in this ?

      1. Sheeba says:

        Hi Manish,
        Do I have an option to break it on-line?

        1. Sheeba

          If it was created online, I am sure it should be breakable online too

          1. Sheeba says:

            As you state, when e-STDR is created on-line, hope it is breakable on-line.
            But will be it part – broken if I withdraw cash as similar to auto-sweeped MOD?

            1. It would depent how many FD are created and of what amount . If there is only on FD , then it will be broken even if you withdraw a small amount

  111. Abhijit Dey says:

    Hi ,
    Thanks for having this forum.Really,could gather a lot of information.
    I am having few queries regarding MODS account for SBI.

    1. If the minimum balance in MODS account is 5000,and if I try to withdraw 2000 then my savings amount will be 3000.In that case I will be charged a penalty for not
    maintaining minimum balance in the account.

    2. It I try to withdraw 16000 and I am having a FD of 50000 then what will be my savings amount left.Will it be 0 and MOD balance=39000?Also in this case I will be charged
    the penalty amount.

    So the conclusion is if I withdraw money from this MODS account then I will be charged penalty..So is it really flexibel at the end of the day?

    1. Abhijit

      You can withdraw the money from your account or FD , but you also have to adhere to the minimum balance guidelines !

      1. Abhijit Dey says:

        Thanks Manish.I just wanted to know if the 2 points given below are correct.

        1. If the minimum balance in MODS account is 5000,and if I try to withdraw 2000 then my savings amount will be 3000.In that case I will be charged a penalty for not maintaining minimum balance in the account.

        2. It I try to withdraw 16000 and I am having a FD of 50000 then what will be my savings amount left.Will it be 0 and MOD balance=39000?Also in this case I will be charged the penalty amount.

        So in order to avoid the penalty charge one has to replenish the withdrawal amount.Is this correct?

        1. Abhijit

          This should be best answer by SBI customer care, their info will be too the point and more authentic and reliable

  112. Sushant says:

    Hi Manish,

    Needed one information. I have opened a sweep account and gave a threshold limit of 5000. I was in a impression that threshold limit and minimum balance in my account is two different thing. Now the issue is i have kept less than 5000 but higher than 2000 in my account for a quarter. Bank has deducted 225 saying that the minimum balance of sweep account is the treshold limit 5000. This was told by the SBI branch manager. Could you please let me know if that is correct or is there any way i can raise this concern as branch manager himself is denying that.

    Waiting for you advice

    1. Sushant

      It might be true .. most of the saving bank account have minimum balance of Rs 10,000 , so if you keep a threshhold limit below that then you are keeping low balance and on quarterly basis , you might face a penality


  113. deepak yadav says:

    it is very good deposit for every person for future saving account

    1. Deepak

      Its not any new deposit account, its just a feature .. thats all

  114. Vinayak

    10 are too much , why not just 2-3 FD !

  115. vinayak says:

    24th comment by Mr Jayprakash Reddy has answered most of my queries. i just wanted to know one more thing. i want to put about 50ooo rupees in this account. so should i create m m fd of 50ooo in one go or should i make 10 accounts of 5ooo. as i m not sure when i will need this money. which would be more beneficial

  116. vijay karthik says:

    Hi Manish,

    This article was very informative and definitely creates awareness about auto sweep facility. You have mentioned not to overdo or overuse this facility(in disadvantages section). Can you let us know whats wrong in over utilizing(because in any case we are gaining profit).

    I am planning to utilize this facility in SBI. Kindly let me know if SBI charges penalty.
    I have some doubts like
    1)what would be the term of FixedDeposit?
    2)what happens if we withdraw FixedDeposited amount prior to its maturity?
    will they charge penalty

    1. Vijay

      Overuse here means that take this facility as added advantage, dont try to make an FD using this way if you can yourself create the FD manually.

      1. That has to be decided by you and in most of the cases its more than 1 yr and if you break the FD , there are heavy penality charges
      2. Yes

      1. vijay karthik says:

        Thanks for the info, Manish 🙂

  117. vinayak says:

    i could not find autosweep in icici online account so i have started using moneymultiplier account in icici bank. it is the nearest thing i could find with sweep in facility. it has 2 format: standard and special. i have gone in for special with 590 days deposit and 9.5% interest rate. i hope its the same thing that we r discussing in this platform. please correct me if i m wrong.

    1. Vinayak

      I am not sure if its the same thing , because in auto sweep, you dont create the FD’s directly, it gets created on its own once your account balance goes above a level. Anyways , see if you are ok with what you have choosen , thats what matters !


      1. vinayak says:

        thanx for reply. i was bit confused as the customer care were also not helping much and on website also they have given fixed deposit and money multiplier account as 2 different things.

    2. Manish Awasthi says:

      Hi Vinyak,

      ICICI has stopped Auto sweep facility in their S/b account ( I dont know the reason) .What u gone for is standrad FD ….

      I’ve been fighting with icici branch mnager for past 2 months to re intiate the auto sweep in sb.
      Last week i become frustated of icici bank and end up opening a new sb account in Yes bank and transferred all my money from ICICI to Yes bank as interst in yes bank savings is 7% and had also written an email to ICICI Sr management about my action. I’m waiting for a reply from them.

      Manish Awasthi

      1. vinayak says:

        thanx for informing.

  118. Sujan Kumar Dey says:

    I would like to know whether this kind of account is treated as a PURE SAVINGS ACCOUNT? As the Govt has notified that customers earning interest upto Rs.10,000/- on Savings Account need not file IT return, so will it apply to this kind of accounts as well? Does the customer need to fill-up 15G/15H form to avoid tax deduction by the banks?

    1. Sujan

      The condition is not just that you should have upto 10k interest , you should also have income of less than 5 lacs to not file the tax return .

      Also these are saving bank account only , just that above a threshhold , your money will be earning FD interest

  119. sourav says:

    how can i gate the auto sweep facility???if i want to activate the auyto sweeep facility in my account then what will i do??

    1. Just talk to your bank ! and ask them to activate it

      1. AB says:

        Hi Manish

        I have SBI SAVINGS PLUS account.

        My threshold limit is 5k. I have some queries:

        1. If i withdraw 2k from ATM, my fd will remain unaffected and savings balance will be 3k ?

        2. My savings balance is 5k and i ve 2 FDs of ist — 65k and 2nd –41k. Can i withdraw 10k from atm ? If so, what will be my savings balance and fd balance? I mean , will my 2nd FD of 41 k break , or only 5 k will move from FD and 36 K FD will remain ?

        When do we get interest credeited to savings account? In my account it shows 9.25% interest and maturity period s 12 months.

        1. AB

          1. Yes

          2. I am not very sure how it will work in SBI , but one of your FD should break and then above 5k , the new FD should get created.


  120. Arun Sharma says:

    I am having an account in SBI, i haven’t started by Online Account due to some reasons and bad support of SBI.

    I am just a graduate and working in a company, so don’t have much spending’s.

    Recently i am having 30,384 Rs in my account, on 2 March i got my salary, 17,056

    and my total is 47,440 on 2 March i checked this through SMS banking facility at around 10.40PM on 2nd March.

    But on 4th March i.e today, when i check my account it shows balance of 5,440Rs

    I get nervous what happens now, i thought someone has taken my money from my account but how?? i haven’t shared anything with anyone.

    I go to SBI ATM and have Mini Statement its shows
    42000 — DEBT SWEEP

    i called SBI Toll-Free Number they told me that they transfer my money to MOD account.
    But why they have done so, without my permission, is it the normal case.
    I will go my Branch Office tomorrow and ask them.

    Right Now i am having 5440Rs in my account, suppose i want to withdraw 10,000Rs.

    How can i do so, Pls explain me, is it okay, Nothing to worry case.

    1. Arun

      There is nothing to worry .. Your account seems to have “auto sweep” activated 🙂 . so any amount excess to some point , that gets converted to FD , actually in a way its good for you if you are not going to use the money for a lot of time , but if you are uncomfortable with this option , please ask them to disable it

  121. Sachin says:

    Manish, I have Rs. 31000 in my SBI Savings plus account. The account description is shown as “SBCHQ-SBP-GEN-PUB-IND-ALL-INR”. My banker told me its a savings plus account. But my MOD balance is still Rs 0.00 Do they create the FDs without showing it on the internet account? Is there a specific date in the month on which they do that? What should i do? How do i know the amount of which FDs have been created?

    1. Sachin

      This question is very much specific to SBI PLus , better you discuss it on our forum :

  122. kris says:

    finally got autosweep enabled after 2 months(better late than to never come at all!)..manish i have a ques. suppose i have 10,000 minimum thresold mark and i have to pay 40.000 via debit card for online bill payment…now i have a MOD of 50,000 does the reverse sweep is true for online transaction also?? or have goto atm or write a cheque for that??

  123. meera says:

    Hi Manish,

    I really like your article.i just have one question what is the difference between saving plus and saving premium a/c in SBI and which one is better. I have applied for saving plus in sbi and also for gold international card but they have not mention 50000 minimum balance for this.As per sbi 5000 minimum balance for saving plus.I have one more doubt what is the total benefit for bank in this case if we can withdraw my money at any time and still we are earning higher interest without any penalty.i have applied for joint a/c with my husband and i am the primary a/c holder but i am not working right now. who will be liable for tax over interest.


    1. Meera

      You will be liable for tax over interest . I am not sure about the difference myself , better ask at

  124. Soman says:

    Thanks for the article.
    Whether the Auto sweep account is accountable for TDS and if yes how can we releived from it.


  125. Kiran says:

    Hi Manish,

    Thanks for the great info. I’ve recently opened and SBI Savings account and was inquiring about the Saving Plus (auto-sweep) there. To my surprise the staff there told me the minimum amount/threshold limit to hold a Savings Plus account is 50,000. Is the amount stated legally right or they are seeking it for their business to run since the branch is fairly new.

    I’m a salaried employee aged 28 with monthly income of 45K and my wife has a similar income. Below is my query:
    We are planning to divert about 20K each month into our SBI acct…(with intention of having a Savings Plus). In such as case will it be very cluttered and complex since each month a FD will be started. Assume we have a 50K threshold in the Savings Plus.


    1. Paresh says:

      I just opened a new SBI Saving Plus account and minimum balance required is 5000 and not the 50000!

      However if you need GOLD INTERNATIONAL DEBIT card they will want to have minimum balance of 50000

      Minimum balance for SBI Premium Account is 250000

  126. sanjay kumar says:

    can we draw more than available balance from atm in auto sweep facility at SBI ATM.Iam SBI account holder.

    1. Sanjay

      You must have overdraft facility for that


  127. Deepak kumar Prasad says:

    Hi Manish,
    Superb article. I just came across your site today and am thankful to you for providing excellent information.

    However, I have some queries. Lets divide this Auto sweep facility in 2 parts.

    (1). Amount above threshold limit is automatically debited from savings account and deposited to a fixed deposit.
    (2). Amount withdrawn from this fixed deposit in case savings account is running short of cash.

    I hold HDFC account. On their website they have mentioned only about part 2 above. They have not mentioned on the amount being automatically debited from savings account and deposited in a fixed deposit. No mention of threshold limit. I am also bit concerned if they open new fixed deposit account every time the threshold is crossed or will they deposit in the existing FD account.

    If we infer from HDFC site it shows we need to first open a FD and then convert it sweep-in with savings account . This is only the part 2 facility as I have mentioned above how does the part 1 actually works ?

    1. Deepak

      What is written in article is a general thing .. all banks their own tweaks in sweep in , in HDFC bank it can be differetn , go through comments .. there is lot of talk on HDFC there

  128. Murty says:

    I have 10Lakh rupees in my AUTO DEBIT SWEEP ACCOUNT and I do not want to take it out for an year. The Online Account shows I can earn upto 94000 Interest. My question is what is the tax implication on this earnedinterest? If it crossess 10000, I have to declare it and I will be losing 30% of it.hence i will get only 65800, which will be 6.58% and not 9.4 %. What is your opinion?

    1. Murty

      Its your wrong belief that the tax is applicable only if interest from bank deposits are above 10k in a year .. its not the case , even if you earn Rs 100 , it has to be shown in tax return and tax is to be paid .. If interest is above Rs 10k , then the TDS is cut by bank , else not , so advance tax is paid by bank on your behalf if interest is above 10k .

      So even in this case, whatever interest you earn will be added to your income and taxed . If you are so clear that you will not need the money in 1 yr, why dont you do a FD ?


      1. Murty says:

        Even the interest earned on FD will be subjected to Income Tax. What shall we do?

        1. Murty

          yes .. the interest on FD is always taxable , what do you mean by “What should I Do” , you cant do anything here… you will have to pay the tax, there is no alternative


          1. Murty says:

            When I ask you what should I do, I mean to say to look for other avenues which generate more than this rate of interest! When you get 6.8% pot tax, for a honest declaration, the effort is not encouraging enough. if you are in the middle age, and you don’t need that fund, I think PF/PPF/VPF would be much better, as it has an EEE mode of taxation. RIght? Or, rather, put 50% into FD, and the rest into PF accounts, the returns would be tax exempt.
            On the other hand, can we avoid tax and still get decent returns, legally?

  129. Sushil says:

    How would you weigh the auto sweep against the recurring deposit? Say the tenure to be maintained is 1 year , then i guess RD would yield better returns ? Also is the intrest also taxable from auto sweep facility ?

    1. Sushil

      RD will deliver better interest but its done when you know about the cash flow in future .. sweep in accounts are for fuzzy future where you are not sure what amount of cash will be there in your account .


  130. kris says:

    Hi manish,
    thanx 4 the really nice article.
    i have a savings(not saving plus a/c) account in SBI since 2005.after reading ur article i went to my home branch and enquire them abt it.they did ask for pan,votter card,ration card xerox etc.submitted it all on 7th dec 2011.they told me i can chek the mod,avail bal etc in my passbook.till today my passbook is showing the same saving bal,no mod bal.when i asked abt it they said there are some “menu setting” problem for which this facility cant be started.they simply didnt utter another word abt it.i tried 2 search it in google but no satisfactory result come in the official website or others.
    my question , is this facility for opening of new savings plus a/c only or it can be started on existing SBI savings a/c

  131. Preeti says:

    Which banks dont charge any penalty for sweep in facility in these type of accounts??

    1. Preeti

      Almost all banks do ..

      1. Preeti says:

        Thanks. Its better to take short term FD then, if i know i am going to withdraw all money say after 6 months.

        1. Rohit Verma says:


          Open an ICICI B2 account, they don’t charge any penalty on premature withdrawl from the flexi account. Only TDS is deducted.

          This account can be opened online at

  132. Preeti says:

    Can anyone tell me clearly about HDFC sweep out facility. I was thinking to apply for this. Do they charge 1% penalty when the FD is broken??

    1. Preeti

      This 1% penality means that you will get 1% less interest on your FD , you dont have to pay anything from your pocket


  133. IDBI Customer says:

    Without informing, IDBI bank started charging for NEFT and also imposed Quarertly Average Balance (QAB) on savings and current accounts. All this despite of voluntarily maintaining over Rs 50,000 daily balance on zero balance savings and current accounts.

    Really feeling cheated after getting friends to open accounts with this bank.

    IDBI is no longer a friend to all

    1. A lot of banks have started that .. NEFT charges are now applicable


  134. Dr. Shreyans says:

    A wonderful information given in detail… Thanks for that.. I infact searched for many sites to get information about savings plus and got goodly from here only. Thanks a lot.

    1. Dr Shreyans

      Good to hear that .. finally you got what you wanted . So finally you are clear on everything ?


  135. Rahul says:

    Sir, give the name of PNB saving scheme that offers above the same
    like SBI MOD account.
    i have SBI and PNB A/c
    i already opened SBI MOD account but i also want to open same for PNB
    but don’t know the scheme name

    1. Rahul

      Just search on the PNB website , you will get it


  136. Preet says:

    Sir,i have saving a/c in sbi.pls suggest me for the min threshold amount in sweep a/c.means if i crossed the threshold thn wht wil loss for me.

    1. Preet

      The threshhold has to be decided by you


  137. Mahavir says:

    I want to have a repeat confirmation that ATM WITHDRAWLS can continue in SBI savings plus scheme as in normal savings bank a/c irrespective of the threshold limit as long as money is available in the related MOD deposits.Also con firm that ATM withdrawl limits remain same as in normal saving bank accounts.

    1. Mahavir

      yea . .thats true .. what are the answer given by the bank on this ?


  138. Laxman says:

    Hi Manish

    It’s for Tax saving.
    You told that there are some plans which would be better than others.may i know which plans are good ?


    1. Laxman

      Which plans and which comment of mine are you reffereing to ?


  139. Laxman says:

    Hi Manish

    Please let me know which insurance company ULIP plan is good.


    1. Laxman

      Why do you want to invest in ULIP’s .. there are some plans which would be better than others , but in general common investors are not suitable to handle a ULIP


  140. ghiuj says:

    good one.

  141. Shan says:

    Hi Manish,

    Can someone do open more than one SBI account at different branch and City or within city?

    It is valid/legal to have more than one account in same bank?

    – Shan

    1. Shan

      Yes, its legal


      1. lokesh says:

        but don’t hide your deposits from income tax….

  142. Laxman says:

    Hi Manish

    I have not received any reply from you,pls let me know.

    1. Laxman

      Actually your question is not very clear . Please rephrase it in simple sentence


  143. Laxman says:

    It is related to Sweep in account

  144. Laxman says:

    Yes Manish..

  145. Laxman says:


    Thank for the articale….it is very helpul.

    1)Is there any Mode balace facilities in Canara Bank.
    2) will get interest on monthly basis or anually for mode balance ?

    1. Laxman

      Is this related to sweep in account ?


  146. Amu says:

    what is difference between multi option deposit scheme and premium savings account in SBI?

    1. Amu

      Thanks for asking the question . For the best answer , I think it would be best if you can ask it on our forum . There are dozens of experts waiting to help you , I will also try to put my answers there , so that others can also benefit from your question.

  147. Harish says:

    The interest generated will be taxed at the tax rate slabs and hence the net return will be less, will it be good if it kept in the Liquid funds.

    1. Harish

      How will it help if one puts in Liquid funds ? Even the return there is taxable .


  148. Sharad Jain says:

    Hi manish,
    plz let me know how banks deduct TDS on FD’s created under Auto Sweep Facility? Whether they deduct TDS at the time of sweep In (i.e at the time of withdrawing money from the account) or at the time of maturity?

    And if they deducted TDS, how will i know about this deduction?


    1. Sharad

      there is confusion on this , looks like when you withdraw the amount , and when you sweep in is broken , the TDS is deducted , look at comments where people have talked about this .


  149. Nirvan V. Jain says:

    Can you please Guide me which is this scheme in Bank Of Baroda ?

    Is this “Auto Sweep” kind of functionality ‘Tax Direct Source’ ?

    Plz help.


  150. Pingback: Sweep In Fixed Deposit, Fixed Deposit in India
  151. Peenuts says:

    Very useful information indeed. Thank you

  152. Vrishali Talele says:

    Thanks for the article…..Very informative….
    My husband is serving for Indian Navy. He has converted his salary account into Defence salary package (DSP) in SBI. The questions I need to be answered are:
    1) Is the threshold limit set by the bank or customer?
    2) Let us suppose that threshold limit is set as 50000 and the amount in the account is 150000. So once the account is converted into DSP, Rs. 100000 will be shown in MOD (Multi option deposit) balance and Rs. 50000 will be shown in Balance. Now if I hav Rs. 10000 left in my balance and I want to withdraw Rs 15000, then will Rs. 5000 from deposit account (fixed deposit) be automatically transferred to transaction (savings) account so that it can be withdrawn? Is it possible to withdraw more money than shown in savings account balance?
    3) What does easy overdraft upto 2 months means?

  153. Saichaitanya Toshniwal says:

    I have made the Fixed Deposit of Rs. 60,000/- on 3rd May’11 with the interest rate of 7.70% and after a week I have applied for “Super Saver” facility.
    For this facility, the “Overdraft Limit” amount is Rs. 45,000/- (i.e. 75% of the FD amount which is Rs. 60,000/-). The maturity date of FD is on 19th Nov’11 i.e. the FD period is for 6.5 months.

    As the interest rate charges applicable on the Overdraft facility will be 2% P.A. over and above the Fixed Deposit Rate. i.e. 9.70% of FD amount will be the charges for “Super Saver” facility (Correct me if i am wrong)

    In case, if I won’t use the Overdraft limit amount, then is there any charges applicable for availing “Super Saver” facility?

  154. Saichaitanya Toshniwal says:

    Dear Manish,

    This is regarding the Query on “Super Saver” facility with HDFC Bank.

    I have made the Fixed Deposit of Rs. 60,000/- on 3rd May’11 with the interest rate of 7.70% and after a week I have applied for “Super Saver” facility.
    For this facility, the “Overdraft Limit” amount is Rs. 45,000/- (i.e. 75% of the FD amount which is Rs. 60,000/-). The maturity date of FD is on 19th Nov’11 i.e. the FD period is for 6.5 months.

    As the interest rate charges applicable on the Overdraft facility will be 2% P.A. over and above the Fixed Deposit Rate. i.e. 9.70% of FD amount will be the charges for “Super Saver” facility (Correct me if i am wrong)

    Incase, if I won’t use the Overdraft limit amount, then is there any charges applicable for this facility?

  155. Mehul Makwana says:

    Hi Manish,

    I already have a auto sweep enabled with my Bank of India account since more than 8 months which is joint savings account with my parents.As myself and my parents are earning members we do transfer the surplus amount from our respective saving accounts to this account which can earn more interest.
    By the way manish keep the good work, i have been a regular follower of jagoinvestor since one year.

    Mehul Makwana

    1. Mehul

      Thanks for sharing your experience . Keep reading


  156. Sunnydoc says:

    Nice Article, I have opened such an account at Syndicate Bank where I have parked my emergency fund. Its called Premium Savings Account.

    1. Thanks for the information 🙂

  157. Sunil says:

    Very nice to read this article.
    Ironically CITIBANK doesn’t have any such facility. 🙁

    1. Sunil

      Is it ? Such a big bank should have that faciliuty which every other bank has

      1. Vidyasagar says:

        Citibank has a account called “Multi Deposit Account”. This is the closest to the auto-sweep account in Citibank.

          1. Sahil Bhatia (v-2sahb) says:

            Multi Deposit is not a separate account from Savings account.
            CITIBANK has a Multi deposit feature incorporated in a regular savings bank account.
            This is very similar to Auto Sweep in.
            However here are some more details that I found out today :-

            1) You can only open a Multi deposit / Flexi Deposit, only if you have balance more than Rs. 50,000 in your account.
            2) For Example, if you have Rs. 2,00,000 in your account, then a Multi Deposit can be of a Max of Rs. 1,50,000.
            3) When you open a Multi Deposit through online banking it says that the final amount generated after the tenure will be applicable for TDS. However as per CITIBANK Customer care Executive, “the Interest generated above a total of Rs. 10,000 only is applicable for TDS ” .

            Thanks again for such a nice post. Keep sharing.


            1. Sahil

              Thankls for sharing that part


  158. Sampath says:

    I am using ICICI b2 a/c since last 2 years, the experience is just awesome.
    I never had any issues with them.

    Every Saturday night, they run the sweep in multiples of 5000 and start considering it as a Fixed deposit. When i try to withdraw money, they try to break it in multiples of 1000. For eg: if 5000 is in FlexiDeposit, and if i withdraw 6000/- , they will break 1000 from FlexiDeposit [4000 will still remain as FlDeposit]

    Disadvantage i saw is
    1) Its a pure online account, withdrawing/transferring money can be done to another account. (NEFT)
    2) After the Flexi Deposit reaches 1 year, the Principle+Interest will be reinvested as a fresh deposit. (Instead of continuing the same interest % rate )

    Over all i would recommend this account to others, since its a zero balance account.

    1. Sampath

      Thanks for sharing your experience . I would use the knowledge in next coming posts


  159. Rohit says:

    Thanks for all information. can you please tell me how much bank charge to activate this service. And how can we close auto-sweep account.?

    Thank you so much manish sir


    1. Rohit

      I dont think there is any charge for activating this . You should be able to close this service anytime you want.


  160. Ramanji says:

    In ICICI ,there is a account called b2BranchFree bank,(no physical branch exist, No ATM).
    in this automatically FD will be created for default duration of one year,
    or else we can create manually also, by specifying duration,
    there is NO premature withdrawal penalty charges on any type of FD created in this account.
    both auto sweep and manual sweep facility is availble.

    i am using this facility from last 2 yrs .


    1. Vishnu says:

      Wow.. That’s really good.

      I have planned to open an ICICI/HDFC account for my mother/father to get their FDs opened online and still get senior citizen benefits..

      With Zero Balance, I think it is good.. Let me check with the customer care or rep…


  161. manivannan says:

    Thanks for your reply. Having read the post and all the comments I have come to the conclusion that the sweep account is best used with the contingency/emergency fund. When emergency comes you are anyway going to spend so you don’t care about the less interest when you break the FD.

    When there is no emergency if you take short term FD like one year then the fund will grow due to enhanced interest.

    This is also an ideal account to create an FD ladder with small amounts:

    I hope my understanding is correct.

    1. Manivannan

      You are correct . Emergency funds can be best created with sweep in account, because of the simple fact of “unsurity” of use of the funds , so untill you really use it above a limit , that part will earn a good return. Atleast better than the salary account .


    2. Vishnu says:

      Hi Manivannan..

      Ladder is very good way (only) if Sweep-in option is not available for you.. Because, it gives you convenience that at least one FD matures every month and available for you (assuming that you can manage till the end of the month).

      When you have Sweep-in option, you can have the entire emergency fund into one Sweep-in FD with the tenure of your choice (which gives highest interest). Because, you can withdraw any amount on any given day during emergency.

      Since you have to choose FDs with different tenures (e.g. 1-6 months for 6 month emergency fund) it means you will get less interest, especially when you don’t end up using the emergency.


  162. manivannan says:

    Dear All,

    This article :

    on page 2 shows a nice graphic about how this works. Looks like if you break the FD is some banks effective interest is only 2.5% for the amount broken.
    So if the money is not going to be idle then this facility seems same as SB in terms of interest. If the money is going to be idle then isn’t FD better?

    If the money is going to be spent short term then the interest earned in that period will anyway be same so loss to investor is not that much

    This requires careful consideration and reading of rules. Its not all that attractive as it seems at first sight. More clarity is required.

    1. Manivannan

      Yes , the graphic there is really nice one .

      Note that sweep account is not for the investors who have that much of clarity on where their money will be in short term , Its mostly for those who are unsure about the cash flow coming in and out , especially “out” .


  163. Manish says:

    Suppose i have 1 lac 50K in my account and i set up , cut off limit off 50K for Auto sweep. …. so 1Lac K will be automatically transferred to Fixed deposits

    Now suppose i utilized 25K from my bank account…………… Now , money in my account is less than cut off limit set up by me …

    So in this case the Bank FD is broken by bank and money is transferred to my account or not ?

    1. Manish

      No , your FD will be like that only . Now you will have 25k in your account and next time when you deposit some money , the excess money than threshhold will again be in a FD . Like if you again put 40k in account ,your total is 65k , so 15k will go in FD


  164. Manish says:

    Good One Informative article…………..

    Will surely go for this option

  165. Nilesh G says:

    Hi Manish,

    Excellent Article, something which I really needed an info about.

    However, quite a few points here:

    1. When I spoke to HDFC representatives (both at branch & over the phone), they claimed that they do have this facility, but any extra amount lying in my savings account above a threshold limit “wont be automatically” transfered to fixed deposits. I will have to do it manually by accessing my account over the internet.So every time I feel that the threshold limit is crossed, I’ll have to create an FD & link it to savings account using FD sweep-in option.

    2. So, I can do that manually – Not a problem. But if I have Rs. 1,20,000 in my savings a/c & I want Rs. 20,000 available i.e my threshold, then the remaining Rs. 1,00,000 has to be converted into FDs. My question is – should I create a single FD of Rs. 1,00,000 or multiple FDs of Rs. 1,00,000 say 10 FD of 10,000 each. Pls suggest.

    3. With regards to the penalty, I undesrtand the 1% penalty is on interest and not on principal. But would it be on FD interest (say 8% – 1%) or savings a/c interest (say 3.5% – 1%). As per the ET Wealth supplement(dtd. 4th April 2011), penalty is on savings a/c interest rate on the amount ‘swept-in’ from FD to savings a/c. It would be great if you can show us the calculation.

    4. Finally, which deposit type is better, (a) Days (betn 7-180 days) (b) Monthly Interest payout (c) Qrtrly Interst Payout or (d) Reinvestment of interest. Please remember that sweep-in facility is being opted since it is my emergency fund

    Thanks once again for your great efforts.

    1. Nilesh

      1. Someone talked about it i guess , see this comment :

      2. Breaking it into multiple FD’s would be good . However dont make 10 FD of 10k , better make 4 FD of 40k , 30k , 20k and 10k . that would make sure you have less FD’s and you can take out any amount 🙂

      3. It would mean that you will get 1% less return

      4. d option looks good to me


  166. Rahul Seth says:

    Thanx for sharing this arcticle Manish.
    My experience of using SBI Auto-Sweep:
    1. Auto sweep-out will not work for any online transaction. Works only at ATMs.
    2. They follow LIFO.
    3. No penalty if broken before maturity.
    4. Interest enarned on daily basis.
    5. Interest rate are flexible. I expereiced from 6%-9.5%
    6. They won’t maintain minimum thershold of the saving account.
    7. All sweep-in & sweep-out are in statement.

    1. Rahul

      Thanks for sharing it point by point, it was the best way one has given a review 🙂 . Thanks


      1. Rahul Seth says:

        Thanx Manish. I am the regular follower of ur blog..Love all of it…Told my relative & frnds..It’s really nice of you to be open source..oops! lil technical 🙂

        1. Rahul

          lol .. we have a windows version too incase you want to look at it :


    2. Bhaskar says:

      Like to add some more about SBI auto-sweep. Using it since last three years.

      1> Sweep out works for instant/scheduled fund transfer(linked/3rd party/Bill pay).

      2> Facility expairs automatically after one year.You have to reapply and resubmit Form 15G. (As explained by my branch manager and her immidiate junior official.

      3> If anybody have different opinion/experience regarding my point no 2 then it is evident that SBI employs incompitent persons as branch manager for their outside metro branches. So non metro customers should think twice availing auto sweep facility in SBI.

      1. Bhaskar

        Thanks for providing that info on SBI Auto-sweep ! , it will really help some of the readers !


        1. Neelesh Singh says:

          How is interest credited , tax and penalty deducted when some amount is sweeped in the savings account from MOD?

          @Rahul Seth
          It works with online transactions.Minimum balance is 5000.after that amount excess of 5000 is sweeped out in multiples of 1000 on 30th of every month.


          1. dattatreyahg says:

            In SBI,the transfer is done immediately on exceedThreshold. Does not wait till month end

  167. Dinesh says:

    Earlier having this account was a boon but since interest rates have gone up bank have started charging 1% on the amount sweeped in the savings account. Now will that be still cost effective calls for some study on it. but i have since stopped it and have an OD on my FD account in case of emergencies.

    1. Dinesh

      Which is your bank ? Also 1% penalty on sweeping back money from FD to saving bank looks ok to me as its a general penalty charged by anyone ,. At the end you have to see if you are earning any better than normal saving account .


  168. Sumeet Kataria says:

    Awesome article Manish 🙂

    Slowly and steadily following ur blog 🙂

    1. Sumeet

      Great.. keep reading , slow and steady is better

  169. Paresh says:

    I got following response from ICICI bank

    With effect July 1, 2005, the auto-sweep facility in the savings account has been withdrawn. Instead, the creation of linked Fixed Deposit will be done only on specific request from the customer.

    1. Paresh

      I found out from a ICICI operations person that ICICI is giving this auto-sweep facility to old customers only , and not the new one’s . How old customer are you ?


      1. Shamim says:

        Auto Sweep facility is currently avaliable for NRO Customer as well

  170. Atul says:

    I have been using this facility using ICICI Bank for the last few years and its really useful.



    1. Atul

      Thanks for letting us know that . Some users have complained that ICICI has stopped this service, but its stopped only for new customers .


      1. Atul says:

        Hi Manish,

        Not at all. In fact my father activated the same recently few months back.



        1. Vishnu says:

          Hi Atul,

          I & my wife has ICICI account for more than 5 years. We too were informed that Auto-Sweep facility is no more available.

          However, Flexi FD can be opened either through phone or in-person. i.e. every month, we have to open the FD not through an auto-mated process.


          1. Shamim says:

            I have recetly applied for the facility at ICICI Bank and the facility for Auto sweep is avaliable.

            But you have to select the tenure for Deposit as 6 months 1 days or 12 months 1 days as these are the only 2 option avaliable


            1. Shamim

              The duration has to be selected by you only. others can take that decision for you .


  171. SEEMA CHHABRA says:

    I was not knowing it before. Thanks a lot for this information.
    I have logged into my ICICI bank a/c and SBI bank a/c also but could not locate this facility. I want to do it online. Is it possible? Please guide.
    Please provide the name of feature for Andhra Bank and Punjab National Bank also.
    Thanks a lot once again for this article.


    1. Marshal says:

      in case of SBI you have to visit branch and submit application to activate MOD facility

  172. vinay kukreti says:

    Dear Manish,

    Thanks for sharing.Just want to know which one should I prefer for short term, sweep-in by HDFC Bank or Liquid Fund online service looking into return part and emergency need.

    Again Thanks

    1. Vinay

      If you are clear about how much long can you lock in the money , then Liquid fund or some debt fund would be a better choice .


      1. vinay kukreti says:

        Dear Manish,
        I am regularly reading your articles and QA.
        Under Q&A,I have noticed that gradually when we move towards bottom of blog page,its initial word getting disappear(problem with page set up),making it difficult to read.Please look into the matter.

        1. I didnt understand the exact issue , are you using IE 6 ? If yes, that is not supported now, upgrade your browser .


  173. SIVANANDHAN says:

    karur vysya bank calls it as rainbow savings account

    1. Sivanandhan

      thanks for the info 🙂

    2. Vishnu says:

      I made my mother open this Rainbow Savings account in KVB. After having this account for more than 1 year and after maintaining 5k-10k balance in this account, she almost had “0” interest at the end.

      With no use after speaking to the customer care, we closed that account.

      1. Vishnu

        I feel your threshhold limit might be very high , did you enquire ?


        1. Vishnu says:


          Now, I don’t remember the threshold… But, I was sure that the amount lying in the account was at least double that of threshold…

          1. Vishnu

            In that case ask the bank to give you details of how you didnt get any extra interest .


            1. Vishnu says:

              Yeah… I should have done that… Now, it has been more than a year since I closed the account.

  174. Vishnu says:

    Hi Manish,

    Good article about one of the hidden features of consumer banking.

    I have been using this Auo-Sweep facility for more than 2 years regularly. It earned me at least 2k/year for the surplus and emergency money. The only drawback with this is it is very easy to break the rules and the FD. 🙂

    I have tried this in 3 Banks at least. In my experience, HDFC is the best for below reasons.

    1. You can start the FD and enable Auto-Sweep online. Everything will be effective in matter of minutes.
    2. If you have multiple FDs, the FDs will be broken on FIFO basis. So, you will not loose interest.
    3. FD will be broken to the nearest 1 rupee. So, if u want 1001 rupees, only 1001 rupees will be broken from your FD, not 5k or 10k like other banks.
    4. For the broken part of the FD, the interest will be credited the day it is broken. (No need to wait till the Quarter End or till the FD Maturity)
    5. If the FD gets broken during day time, and if you deposit the broken amount (online or anyway) before the close of banking hours, your FD will not be broken. (Very useful in case of emergencies)
    6. No penalty for Breaking FDs. But, the interest rate will be as per the number of days the principle was with the bank.
    7. For Salary Accounts, Auto-Sweep is free. For others, it will be free if you open a FD of 50,000 without Auto-Sweep. (I think now it is free for Salary Accounts also, not sure).

    1. som says:

      This was good info !! Thanks …

    2. Sameer Bhiwani says:

      Hi Vishnu,

      I have also had this same setup for 2+ years now, can you tell me how exactly you know that how much amount is in FD, does the a/c balance become low? How do you know on what amount you have received the interest? Does it show anywhere how much amount is earning FD interest?

      Sorry for the multiple questions, but I’ve been following this thread for proof but I’m not seeing any.


      1. Vishnu says:

        Hi Sameer…

        Every time, your FD gets broken, there will be two transactions in your statement.

        1. How much of your FD was broken (and deposited in your savings)
        2. How much interest was earned?


        31 Jan 2011—SWEEPIN CR-00774*******16———5457.00
        31 Jan 2011—INT. ON SWCR ON-00774*******16–97.67

        1. Sameer Bhiwani says:

          Interesting, I have never seen such transactions in my a/c at all..ever!
          Must check with the bank on this!

          1. Sameer

            Check if its really activated in your account or not 😉 , LOL


            1. Sameer Bhiwani says:

              Yup, I found few settings-type pages that let me chose which source a/c and target FD a/c, etc but still no go.
              Will have to call the bank for this one.


            2. Sameer Bhiwani says:

              Ok major clarification of terms for me –
              Sweep-IN – is when the money from an FD is moved IN to the savings a/c to honour cheques or withdrawls.
              Sweep-OUT – is when the money above a threshold automatically moves to an FD.
              Sweep-in is automatically set for when Sweep-out is set. But, reverse is not true.

              In the case of HDFC, sweep-in comes with SavingsMax a/c, which I took. Sweep-out comes with MoneyMaximizer that is an option given to SavingsMax a/c holders. I wasn’t aware that this is optional, due to mis-selling + my own ignorance and since it has been a while I had this a/c and took no action – due to laziness.

              While I will get this activated, I think having 1 lakh sitting in the bank just to get an auto FD is a waste, so will certainly move this money to a debt fund soon.

            3. Sameer

              Is this “sweep-in” and “sweep-out” thing true for every bank ? I think by default the original facility is same as “Seep-out” which you have mentioed , but its called “Auto-sweep” or “Sweep-in” by banks .


          2. Vishnu says:

            And, you can link the existing FD to Savings Account online… In your Netbanking you should be able to see if it is already linked or not.

      2. dattatreyahg says:

        I got a statement as on 31 mar 2012 from sbi,which clearly showed how much interest has accrued in each of the MOD transfers separately as also the interest credited for s/b a/c separately.

    3. Vishnu

      Thanks for the detailed review and information . It will help a lot .


    4. Karun says:

      Hi Vishnu

      FD shld be broken in LIFO order otherwise customer will lose..


    5. Karun says:

      Hi Vishnu,

      Pls check again if there is no penalty for breaking FDR on pre mature basis.
      I think HDFC must not have debited the penalty amount but would have directly credited 1% less interest to you,


      1. Vishnu says:

        Hi Karun,

        Yeah, it was my mistake… HDFC started this penalty only recently I think.

        Otherwise, ‘No Penalty for premature Withdrawals’ was one of the promotions of HDFC when I started using this facility.

    6. Hi Vishnu,

      I think the FDs should be broken in LIFO method and not FIFO method. Coz when I had this facility activated with ICICI Bank they used to break the FDs in LIFO method and in multiples of Rs. 5000. The logic for LIFO is that the previous FDs which have been there for a longer period stay intact and complete 1 year before they are automatically renewed and the customer gets the maximum benefit of the higher interest rate.

      Please check with HDFC Bank if they are following LIFO Method or FIFO Method of breaking FDs for pre-mature withdrawals.

      Best Regards
      Gopal Gidwani

      1. Gopal

        I think some one mentioned above that HDFC has it in FIFO method , does not serve teh purpose , as explained by you very clearly


      2. Vishnu says:

        Hi Gopal,

        ICICI uses LIFO and HDFC uses FIFO method for breaking the FDs. I think LIFO is more beneficial, which I did not realize until now.

        Any one has any thoughts, when FIFO will be beneficial? Or is it, LIFO wins hands down?


        1. Vishnu says:

          A small update on HDFC FDs.

          Though HDFC bank breaks the FDs in FIFO basis, you have option tp close the FD (in any order) through online.

          Thru Netbanking, use the option “Liquidate Fixed Deposit”. The catch is that you cannot break the FD partially. The entire FD has to be liquidated. The interest accrued will be shown in the final page before confirmation.


          1. Vishnu

            Thats a good update . I am sure many will understand their banking better 🙂


          2. Viswanadham says:

            Another catch is that HDFC Bank does not allow you to liquidate online the FDs created offline.

    7. KRANTI says:

      amazing info to the core!!!

  175. som says:

    I shall tell my experience about the Sweep-in feature:

    I opened a sweep-in account with SBI in September,2010.I had to write a proper application addressed to the BM, for the conversion.It was not done at the outset although i had explicitly mentioned in the account opening form.So we have to check explicitly.

    What i could do:
    – I could set the “threshold value”, bu default it is 5000 in SBI [anything above 5k is swept to the FD account called the “MOD Balance” ]
    – I could not set the duration, the system does it for 12 months by default.

    I got 6.75% tied to my MOD balance.
    In the netbanking info of my “MOD Balance” clearly shows the swept-in amount as a separate account comeplete with the duartion, interest rate etc.
    And the normal SB account shows the rest amount with 3.5%.

    Now my question is if now i start pushing in more money what will happen ?

    Will i get the 6.75% interest or i shall get the current FD interest which is around 7.75%[for 12 months] ?


    1. Marshal says:

      you will get current rate of return. in my case since am availing this facility from last one year, i have accounts with 6, 7 and 8.25% rate.. every month a new account is created provided you have more than 15k in your SB account..

      1. som says:

        Thanks Marshal … this info will be of great help to me.

      2. Marshal

        Thanks for the info 🙂

  176. Nitin Gupta says:

    there is a limitation for HDFC account holder, dont know the what is the reason for this…

    This facility is available on NetBanking only to customers having a Savings or Current account with the Bank where the holding pattern is SINGLE i.e. there are no JOINT holders

    1. Nitin

      thanks for sharing this information . I am not sure if other banks also have any kind of restriction like that .


    2. Hi Nitin,

      For joint account holders this restriction is there because some joint account holders select the mode of operation of the account as “Jointly” which means for every withdrawal both the account holders have to sign the cheque. So for the bank they will not be able to assess while making a fund tranfer / withdrawal from the internet whether both the joint account holders agree to the transfer or not. So because of this I think this restriction must be there for internet banking for joint account holders.

      For a joint account if the mode of operation of the account is “Either or Survivor” then even if one account holder signs the cheque still the withdrawal will be allowed.

      Whereas in a single account where the mode of operation of the account by default is “Singly” such restriction will not be there as the single accounholder himself is the whole and sole operator of the account

      Best Regards
      Gopal Gidwani

      1. Gopal

        Thats a good explaintion . makes sense !


      2. Nitin Gupta says:

        But they shud allow if it is a joint acc with either or survivor mode…

        1. No idea why they have this restriction , some banker will be able to tell us that


  177. pattu says:

    Yes its a good feature. However in my view its for the couch potato investor who has idle money in the bank. If one is saving regularly for ones goals then typically not much money would left in one salary or SB account except the emergency fund. For those the sweep is irrelevant since they would typically earn more interest from other investments.

    If one is tempted to sweep part of your emergency fund one should think again (You also state this in the article). If its in an FD it cant be accessed by an ATM right? I would expect it to take at least half/one business day or to get it back into the SB account. So this would spell trouble for dire emergencies. Credit cards cant help at all times. So a good amount of emergency cash in the SB account is needed. If you invest the rest in a disciplined manner I don’t see any need for the sweep facility.

    1. Nitin Gupta says:

      Ooops, i had the impression from the article that, we can withdraw(sweep out) the money using ATM also….

      Manish pls confirm on this..

      1. Marshal says:

        @Nitin, SBI MOD facility allows ATM withdraw and its automatic.. that’s the whole idea of auto-sweeps in/out

      2. Nitin

        Not all banks , but some give that facility and technology takes care of it , You have to find out more about your bank yourself and share it with us here 🙂


  178. M Anand Kumar says:

    Hi Manish,

    Very good article on sweep account. As we know that tax is deducted on earned interest of FD’s. Can you let me know the tax deductions wrt sweep account. Does it depend on the tax slab i belong to or is it same for everyone? i hope the tax deductions is uniform across banks…..

    1. Anand

      FD interest will be added to you income for the year and taxed accordingly . Tax does not depend from Bank to bank , it depends on the govt slabs


      1. M Anand Kumar says:

        Hi Manish,
        My doubt is how will the bank be aware of which tax slab the person is currently. Do they track it via PAN card info provided? I am not clear with tax deductions wrt sweep account. Additional info wrt would be helpful.

        1. Anand

          bank does not need to know that , they cut the TDS if your interest is more than 10,000 , but incase its less, they dont cut it , Its your responsibility at the end to pay the tax .


          1. M Anand Kumar says:

            Thanks for the information Manish:-). I have been using the sweep facility in SBI from 1.5 yrs. Accumalated interest was around 15k but due to immediate in need of money i had to break all the Sweep deposits. I got 8k only instead of 15k . I didn’t enquire the details with the bank wrt this either.

            1. Anand

              I think you should atleast ask them how they cut 8k , getting just 7k when you could have got 15k is a big blow . thats 55-60% loss by just breaking the FD ?


            2. M Anand Kumar says:


              Yes i definately had a loss of 50%. Whenever sweep account FD is breaken it only gives the info of the credit interest, the amount withdrawn from the respective sweep FD (FIFO) and not the details of charges for early breaking. After searching i figured out that the tax deducted is almost 2k (e-tax statement in online SBI) and probably remaining 5k for breaking before the term. I should collect the sweep account rules from SBI Bank.

            3. Anand

              So if you say that 50% loss was after considering taxes also , then it does not look that bad , as it was looking earliar ,. If you are into the top most tax bracket , then 30% tax will anyways go away + your penalty and it should be good enough !


            4. M Anand Kumar says:


              I agree with u Manish but, I am under the tax bracket of 10%. In the e- tax details, the sweep accounts yielding interest more than 2k were deducted under the tax bracket of 20% and the rest were 10%. Need to collect details from bank

  179. Rupali says:

    Hey Thanks Manish

    I was really looking for something like this so i was thinking of recurring deposits but just because of unware of this option. Now that i got to know this i will definitely going to take advantage, really helpful info.

    1. Rupali

      good to know that it helped you .


  180. I remembered once my ICICI CC told me about it and I deposited money into FD.. So when ever I needed extra money it always cut down from my FD… Though what we did was manual.. Never knew there is an automated facility for this.. Thanks for this.. Enabling this feature now..

    1. Great

      you can enable it and all things will happen in the background .


  181. dr maj gowri shanker says:

    dear manish
    sorry you are not correct in explaining this concept
    an educated investor will park his surplus money in SB account only when he needs it in the very short term- say 20 to 30 days and any thing more than that should go to liquid fund (if the requirement is less than 6 months) and more than that to short term debt fund for a requirement of 1-2 years

    liquid funds give a return of 5-6% and short term debt funds a return of 7-8% (even 10% based on the prevailing interest rates)
    whereas the money parked in auto sweep -fixed deposit will attract the interest only for the period it was held. sbi offers 5.5 % for three months,4% for two weeks (and not at least 7%)

    now let us assume that one withdraw the money in 40 days. the liquid fund will give 5-6% for 40 days. whereas SBI will give 5%(for lessthan 45 days deposit it is 5%) minus penality charge of 1%

    if you are in 30 % tax slab the amount that you keep either in bank account or FD sucks away more making the liquid/debt fund (liquid/debt fund returns attract short term/long term capital gains tax based on the time period they hold which is attractive than the other)

    the liquid fund encashment also happens in 1 working day (what big liquidity crunch is going to happen as long as you have credit card + cash less medical policy+25000 in your bank balance )

    and another reason manish just think why all corporates park their liquid money in liquid funds and not sweep in accounts !

    as you say small things matter a lot – and this too

    1. Gowri Shankar

      I have mentioned in the article that sweep in facility should be enabled by anyone who has no clarity on for how long his money will be lying idle in an account . If a person is very clear that his money will not be needed for a specified time period , then yes , what you say makes sense .


    2. Anunay says:

      Liquid fund never gives you auto facility which manish is taling about in this post. Also liquid fund needs lot of human interference and never ever you can access that without visiting amc or you have to be really net savvy to transact every other day be it buying new units or redemption.

      Also dealing with liquid funds is really painful and works only if you have heavy amount. for small amounts pain will be always higher than returns

      1. dr maj gowri shanker says:

        hi Anunay
        even learning to cycle and swim is also painful
        but once you under stand the concept of what i said and start practicing , it is absolutely painless
        all the best
        gowri shanker

    3. Vijay says:

      This facility is very much useful when you want to put some money against your future commitments like post dated cheque/ECS, where in you want to make sure that sufficient balance is available when ECS request comes.

    4. Francis says:

      Dear dr maj gowri shanker,

      You have mentioned, “now let us assume that one withdraw the money in 40 days. the liquid fund will give 5-6% for 40 days. whereas SBI will give 5%(for lessthan 45 days deposit it is 5%) minus penality charge of 1%”

      May I know which liquid fund gives 5-6% return for 40 days? For SBI Savings Plus breaking the MOD is without any penalty. Pls get your facts correct.

      You are correct liquid funds are tax efficient, but that is for people in the higher tax brackets. That advantage will also be removed, if DTC comes into effect.

  182. khalid says:

    Hi Manish,

    Very nice and descriptive article as usual. I know about this Auto Sweep for last 6-8 years as my account in ICICI is giving me this feature.

    1. Khalid

      Thanks for sharing it , someone above said that ICICI auto sweep has some issues . can you check that


  183. Saurav Sinha says:

    Hi Manish…. gud article once again… I knew about it through Mr.Gopal Gidwani’s …. just decided to go for it…. I have a salary account in SBI so my queries are to U n Marshal whos a fellow SBI account holder :

    1)To Manish – What is the difference between min balance & threshold limit in case I switch from salary-account to Savings Plus account?

    2) To Marshal – What kind of deposit options do I get ( Fixed-deposit/Term Deposit/Special term Deposit) & which is better in terms of returns/tax-implications?

    3) To Manish – What is the meaning of ” Quarterly compounded Interest ?” if I opt for Special Term Deposit? Is it compound-interest on money available in account every quarter-end? What will be the tax implications?

    4) To Marshal – Can it be operated from outside India? I mean if I open Savings Plus account now & after few months I move outside India then will I be eligible/able to maintain this account simply by maintaining quarterly avg balance?

    5) To Manish – Just for learning may I know the formula to calculate the money one receives after maturity of a particular fixed-deposit/term-deposit/special term-deposit after taking into account tax implications?

    Thanks everyone for bearing with my lllloooonnnnnggggg comment !!!

    1. Marshal says:

      @Saurav sinha,
      my replies
      #2. term and special deposit..which is better i don’t know.
      #4. yes it can be operated from outside india.. via netbanking.
      more details on SBI MOD facility is available here,1,19,114,189

      1. manivannan says:

        Dear Sir,

        Thank you for very nice article. Regarding comment by Mr. Marshal and link he provided about SBI,

        It says withdrawal can be made through overdraft facility. What is this?
        It also vaguely says ATM can also be used. Can we break FD with ATM also. Can someone please confirm this?

        Full details in each bank is hard to find. So difficult to choose where to use this facility.

        1. Overdraft means you can withdraw more than what you have in your account as bank considers you as preffered customer .

        2. Marshal says:

          with respect to ATM usage, i can tell you my experience of SBI. every month a new FD account is created from Saving bank account(SB). if my SB account have a balance of 25k then FD account is created with 20k. It means only 5k left in SB. Now if i do a ATM withdrawal or NEFT transaction of worth 6k then automatically (to be more precise instantly) 1k is sweeped-in from FD to SB using LIFO method. Instantly interest is credited and also tax is deducted. as of now am not clear on tax calculation and penalty charges. but am sure that am getting more than 3.5% returns.
          p.s. Also its not an overdraft 🙂

    2. Saurav

      1. Minimum balance is the saving account minimum balance which has to be maintained by you in any case . Threshhold limit is set by you above which hte money becomes FD , so minimum can be 5k and threshhold limit can be 30k , just an example

      3. Monthly Compounded interest means that the interest will be calcualted each quarter and the interest will be added back to the amount . So if one says 8% interest compounded quarterly , then you get 2% interest each quarter . the yearly return turns out to be more than 8% in that case .

      5. You first find the maturity value by A * (1+r)^T , where r = rate of interest and T is total tenure , This is yearly forumula , If interest is compounded quarterly then r will become r/4 and T will become T*4 .

      You then take hte totla profit and add it to income , and pay tax


  184. Karun says:


    Kindly also mention in your article that in this resp case FDR cannot be made for special days.

    For eg SBP was giving special rate of 9.75 % for 999days and 555 day. UBI is giving sp rate for 1100 days.

    Sweeps In cannot be made for 999 or 555 days. It would be made only for straight fwd time periods like 6 mon, 1 yr, 2 yr etc etc


    1. Karun

      Yea .. I have also mentioned that one should not over do it . If one knows that the money will be locked for many months , then better to go for other products .


    2. Vijay says:

      ICICI bank provides Linked FD(Money Multiplier) with spaecial rates(390/555 etc). Through net banking, there are two options for customer, first is special interest and another is normal one.

  185. Karun says:


    Why the pasbook is cluttered? I dont see any reason for the same.

    Kindly remember interest in credited to A/c on quarterly basis in most of the banks.

    If you money sweeps in or out how does it affect your annual statement? Only the interest component should affect it.

    Thirdly I think in most of the banks there is a sys to show TOTAL BAL and AVAILABLE BALANCE in A/c statement or passbook/


    1. Karun

      Yea even I think there is no much problem with the clutter .


  186. Anunay says:

    I believe its not worth, although the returns of upto 10% looks attractive but when it comes to quantum of interest then interest earned is not substantial . It only increases the complexity and I am sure even a financial expert will find it difficult to reconcile the statement especially when FD is broken in units of less than Rs. 5000.

    also savings ac gives interest of 3.5% on daily balance now making the sweep facility not very attractive. Earlier this facility was USP of Private banks but now a days even customers also dont show any interest in this type of product.

    1. Anunay

      Why do you think daily interest on saving bank will give enough return , it still comes out to be around 3.5-3.7% .

      Also Financial experts dont go that deep into your Passbooks to look at number . Can you share what exactly is the reason you think this is not worth the hassle ?


      1. Anunay says:

        Hi Manish

        I had opened a auto sweep and reverse sweep account with ICICI bank in 2002, however after 1 and half year the interest I earned was around Rs. 2800 considering my average credit was Rs. 48000 pm and my minimum balance was Rs 15000 at any point of time.

        Being a financial expert myself i found that understanding and reconiling of my statements was a herculen task. Trust me being well educated in finance and even being a financial expert I had to spend a lot of time to reconcile my bank statement, I wonder what a normal person would go through if he would have been at my place. 6-10 years back every bank was boasting of offering auto sweep and reverse sweep facility which I am sure no bank boasts of. even if they are providing this facility they never boast of or even mention about this facility in any of its brochure.

        Net net, reward earned by this facility will never match the expectations according to the balances kept in the savings account. .

        For the person whose average credit is Rs 10000, the kind of returns he would get will never be the worth considering the trouble he would go through reconciling his statements and it would be the same with a person with average credit of Rs 5 lacs monthly.

        On percentage returns perspective it might really be very attractivebut when it comes to absolute returns its not a good proposition

        1. Anunay

          Ok , so by “net return” , you mean everything considering number returns + inconvinience too ? I dont know many who actually reconcile their bank statement personally ,they are mostly interested in seeing money in thier account . thats all

          For those people what do you think ?


          1. Anunay says:

            Ha ha…. those people cant even make out how much they have earned they will just have a feel good factor that they are earning FD interest rate (Upto 105 in today’s scenario)

            1. Karun says:


              Just coreecting you here its 109.75 in todays scenario (FDR for one year)


  187. Marshal says:

    thanks manish for sharing, am using SBI MOD facility from past one year and i think i did mention this somewhere in your blog as a comment .. and it is really worth barring cluttered pass book or online statement..

    1. Marshal

      But dont you think its better to get 3-4% return even if your pass book is bit cluttered .


  188. Ahmad Zaib says:

    No I didn’t know about this and as always this is some nice information! 🙂

    Thanks Manish once again!

    1. Ahmad

      Great 🙂 . Use it now and spread the word


  189. Paresh says:

    Thank you for this information.
    Really,smaller things can change to bigger if we provide proper attention and take care of it.
    Information you provided is really in welfare of investors.

    Just one thing I would like to update,,to avail sweep in facility of IDBI bank one needs to maintain average annual balance of Rs.50,000/- in FFD.
    Thank you.

    1. Paresh says:

      one correction in my above comment:
      quarterly avg balance of Rs 50,000/- to be maintained in ffd ,,its not annual avg balance.

      1. Paresh

        Differnet bank have their own limits . IDBI has a bit over streched limis i guess 🙂


        1. Paresh says:

          yes.but idbi advantage is the zero balance account with all facilities and no service charges for imp. services.even they don’t charge for DD,,outstation cheques etc….

          1. Paresh

            I think thats more important thing for a normal customer . IDBI has been positioning it self very well in last 1-2 yrs as a customer friendly bank which does not charge for basic things .


  190. Ganesh says:

    So what about the tax part of this. We all know that if you take the tax part into consideration FD gives a pretty bad returns.

    1. The taxation part is same as FD ,all interest is added to your income .


  191. Hi Manish,

    I dont think there is a charge for this service from the bank. This is offered as a complimentary service with the Savings Account to encourage people to keep money in their Savings Bank Account rather than putting it in a debt fund. If they penalise customers for availing this service then customers will not opt for this service and it will beat the entire purpose of this facility.

    When I was doing research on the same topic, I did visit websites of a number of banks offering this product. But I did not find anywhere mentioned if any bank is charging for this service. If you are talking about any specific bank which is charging for this service then I am not sure and I may be wrong. But as a general trend since this product is a complimentary product and this benefits banks more than the customers (even though customers get the liquidity of a savings account and returns of a fixed deposit) so it makes no sense for banks to charge for this product as it will dissuade customers from availing this product.

    I did read some readers complaining about their account statements cluttered because of additional accounting enteries due to this facility. But I feel the cluttered statement is worth it if it helps the customer earn an additional 4-4.5% over and above the normal return of a savings account of 3.5%

    Best Regards
    Gopal Gidwani

    1. Gopal

      Agree with you on all points . Just that some banks are not that excited to make this facility easy enough for customers . There many blockages and rules which keep people stay away from this service.


  192. Pratik Agarwal says:

    I too have an experience with Bank Of Baroda, and my experience regarding the clutterness in pass book was same. Its very very hard to tackle the transactions from FD to normal account,

    regarding interest rate & charges I am not aware, I just once tried my brain to see if all debits & credits were genuine, 🙂

    1. Pratik

      So do you feel that the extra money earned by this facility is not of value compared to the uncluttered ness in your Pass book ?


  193. Rakesh says:


    Once again very good article.
    I had checked with HDFC bank few months ago and they said i cannot link it to my existing savings account and would have to open a new account and link it.
    That’s just too much pain to manage another account.


    1. Vishnu says:


      U can do it online through netbanking without any request.

      1. Somen Jana says:

        dear Vishnu,
        Can you kindly tell me the procedure to activate the auto sweep facility through net banking?
        Thanks in advance

    2. Rakesh

      Ask them for a link on the website where its mentioned that you cant enable it on your existing account, if they can give you the link , then its fine .

      Else tell them you will complain to Banking ombudsman about it, lets see what do they say in that case


  194. Sameer Bhiwani says:

    I have one of these accounts from HDFC, but I have never seen any FD transactions, or got any sweep in/out notifications. I really have no way to find out what part of my money is earning what interest.

    Moreover, the sales exec who sold me the a/c said anything above 50k will get FD interest; I told him that I’ll take it only if the amount is 25k, not 50k. He said he will get it done.
    But when I got the a/c docs, it showed 1 lakh – i.e. only amount above 1 lakh will get FD interest. When I called him again, he made excuses.
    But for amount even about 1 lakh, I don’t see any activity or have any way to really say that this has worked.

    Is there anything else that needs to be done to enable this? How do you know on what amount, how much interest you got and for what duration?

    Sorry if this sounded like a rant, I just had to ink it! 🙂


    1. Sameer

      Thanks for that info, Generally bank will ask you in the form what amount you need as “Threshhold” limit . banks will have their own “minimum limit” . If you have sweep in enabled , then you should be getting the benefit , It cant happen that Bank is not giving it to you and incase they are not providing you benefit, its a clear case of service defeciancy and you should be complaining abiout it to Bank and then to Banking Ombudsman (coming next in the article) .

      You need to take a step and enquire about it, because you are loosing some potential money .


      1. Sameer Bhiwani says:

        Thanks Manish. This is where I have a doubt – perhaps any HDFC customer using this can answer – how do you know what is the amount earning FD interest? Should we just see the interest amount and be happy (like savings interest)? or do we have a right to know how they arrived at that amount (like regular FD)?

    2. Karun says:

      Hi Sameer,

      My experience tells me that pvt sector banks charge a lot of money for small services.

      In your case keeping aside 1 lac in savings A/c at 3.5% defeats all the purpose of opening a Auto Sweep In A/c.

      SBP provides this facility for 10k with interet rate of9.75% (for 1 year).


      1. Sameer Bhiwani says:

        Yes, that’s the reason why I negotiated it to 25k, but the ‘senior sales exec’ was a fraud, his ethics were not as good as his english!


        1. Sameer

          ok , so this becomes a clear case of negligence by the bank , Have you complained to bank about it and it has been 1 month passed from that date ? Now you have to approach banking ombudsman and I am sure they will take care of this , may be a little late but, be a bit patient .

          See my next article on Banking ombudsman !


  195. P Venkatesan says:

    Nice article.Somebody only know this facility.But some banks give lot of facility,like SBI give the total balance in passbook( balance,avail balance).But Dhanalakshmi Bank,only balance availability in passbook.

    1. P Venkatesan

      Thanks for sharing that info . I think one account in SBI is something which one should definately have . What do you say ?


  196. chandermani says:

    One problem i have faced in the past when i used such a facility was that the account statement becomes very cluttered. There are entries for all sweep in outs and making sense of the account activity is nearly impossible.
    This factor should be kept in mind while using this facility. My experience was with ICICI bank.

    1. Chandermani

      Thats a good info to know , I was not aware of it 🙂 . Yes if a person is too sensitive about uncluttered ness than one will have to think about it


  197. shyam says:

    But, surely this will be valuable to many viewers.

    1ce again Manish, Thkx for the effort.

  198. Vikas says:

    Lovely article Manish. I think this is something which many people can make use of. Thanks for sharing.

    1. Vikas

      Thanks . Share it with your friends too


  199. shyam says:

    I knew abt the Auto-sweep account earlier, but surely i hv learnt something extra here abt the penalty charges from banks and the various names under which the banks offer.

    1. Shyam

      Thats great to know . Share something with us which we have no covered here


      1. Ninad says:

        In case of HDFC they have penalty of 1% on part of the FD which breaks. IDBI bank does not have such penalty.

        One more thing with HDFC bank is the FDs break in FIFO method. ie oldest FD breaks first. My own experience was that due to this none of the FDs completed their full term. Now a days I manually break the FD online (mostly the last one created) in case of emergency funding.

        1. Ninad

          hmm.. Breaking FD’s in FIFI style does not look to good to me. As you said it does not help you gain the maximum returns . It should be LIFO style


          1. KRANTI says:

            Hmmm….manish LIFO-FIFO must have reminded u of ur computer engineering days!! 🙂 and the same is for me too!! Nice to hear these terms!!!

        2. viswanadham says:

          I heard that HDFC Bank does not allow online liquidation of an FD created manually in a branch. Nothing about it is written on its website, but do you have some experience on this issue?

          1. Tribhu says:

            This is true that FD created from a branch can not be canceled from site. I got this information through mail from HDFC.


            1. Tribhu

              I am nt sure if thats true for all the banks , i think in ICICI its possible


      2. tarun says:

        8979658160 hello…………………………….

  200. Amarnath says:

    This is what ICICI says about auto-sweep account !.

    Dear Mr. Reddy,

    Effective October 1, 2005, funds from your savings account will be moved to create fixed deposits only on your specific requests.

    We are unable to service your request to continue the facility of Auto-sweep in your account as the last date (January 31, 2006) to place a request for continuation of the facility is completed.

    This is intimated to all our customers along with the account statements.

    However, you can give specific request to the bank to create a Fixed Deposit by sweeping money from your savings account and link the FD so created to the savings account.

    Features of Money Multiplier account ( earlier known as auto invest account or quantum optima):

    The creation of linked Fixed Deposit (FD) will be done only on specific request from the customer.

    1. You have to give specific request to the bank to create a Fixed Deposit by sweeping money from his savings account and link the FD so created to the savings account.

    2.Minimum balance in the savings account should be Rs.15,000 to generate a linked FD request

    3. FD requests will be made in multiples of Rs.5,000 only.

    4. You may have more than one FD linked to the same account. you need to give specific request for each FD creation and linking.

    5. The linked FDs will be under the same Customer ID.

    6. All FDs linked to the account will be enabled for automatic reverse sweep in multiples of Rs.5,000 when the balance in the savings account falls below Rs.10,000.

    7. FDs will be broken in LIFO (Last In First Out) basis for reverse sweep.

    Kindly note that Money Multiplier Account is also updated in the “Terms and Conditions” section on the web site

    1. Amarnath

      Thanks for sharing this, when did ICICI send you this email ? because it seems auto sweep with ICICI will not be that attractive !


      1. Amarnath says:

        it was last month when I try to enquire on the product. Yes they made it very difficult enroll , they allow online FD’s / Insurance / and other products. But not the sweep-account , may be they dont want to encourage ppl to use the sweep-account facility as it cost more to them .

        1. Amarnath

          Thats bad . Other readers have also enrolled for this facility and they seem to be ok with it , check other comment


        2. JayaprakashReddy says:


          I’ve been using this service since last couple of months. Yest, there is a difference in this facility from other banks. This facility is one way automatic. If you have excess you can create FD above 15k and they will reverse sweep the amount whenever your balance goes below 10k. It looks good to me and whenever I deposit amount in the account I’ll create money multiplier FD and throughout the month whatever payments are going from my account, they will reverse sweep the amount from FD to savings account and also they add interest for the amount you kept for that duration even if it is 1rs.

          1. Thanks for the update from your side

    2. Vijay says:

      I called ICICI bank customer service and they said auto sweep facility is not available now. Instead they have money multiplier in which customer has to create Linked FD which will earn FD interest. This amount will paid if customer doesn’t have sufficient balance to serve cheque request.

      1. Vijay

        Its only for existing cusomters right now .


  201. Sanghmitra says:


    It’s astonishing how we didn’t knew such easy way of parking money…Good info…
    Will go for it soon..
    Just need to clarify, does it work like “every excess amount at month end frequency ( correct me if wrong) gets transferred to FD at particualr interest rate ( which is what?). When will be the maturity date?

    1. Sanghmitra

      When you enable the service , you will have to tell the bank about all these details that how long the FD should be like 1 month , 3 month or 1 yr etc . Depending on your inputs , it will be functioning .


      1. som says:

        I think in SBI the system by default takes it for 12 months.In case of Bank of Baroda it is by default for 180 days.

        1. Som

          But dont they ask you for your personal prefference ? I thought if a investor does not mention any personal preference , then only the default numbers come into picture ?>


          1. Amrit says:

            Hi Manish,
            I think you are right. by default SBI put the sweep account money for 1 yrs. I have an experience for that. I had opened the account in SBI but i was not aware about the rules and regulation of sweep account. I deposited around 20,000 in my account and few day later i saw them in sweep account for 1 year, then only i came to know that there is something like sweep account.

            1. So for your case sweep account was activated by default ? that should ideally not happen !

            2. Devendra says:

              Some of bank Managers are really very known of about these features so they activate at the time of account opening. But still there are lots of old age managers which are not aware of new interface of computer software and its facilities.

            3. Yea especially in old banks like SBI or Maharashtra bank

  202. Hitesh says:

    Hi manish,

    the link is the same as you mentioned but under the heading sweep in facility there is 3rd point of services and fees. but when we click on it it does not show the fees.


    1. Hitesh

      That link is a general “fees” link and not for this particular service .


  203. Abhilash says:

    Lets say that I enable the autosweep facility on my account. I then breat it and sweep back the entire amount after 6 months. So do I get the FD interest rate for 6 months on the auto swept amount assuming that there is no penalty?

    1. Abhilash

      Yes , you get the interest for any duration for which FD was there . Also note that you dont have to do anything manually from your side ,. For you it will appear as if you have all the money in cash , this sweep in converstion of extra cash into FD is all by technology .


      1. shanu says:

        pls tell in more detail if minimum period for fd is 1 year .
        can we get the intrest for 6 month for fd in auto sweep ?

        1. You will get interest for whatever duration you open it

  204. raju says:

    Hi Manish,

    Nice article once again.
    It will be good,if we can get the info of the banks which offers this kind of facility with different names.
    Because people have savings account in different banks not just ICICI,HDFC,SBI.
    As I know, IDBI ,Indian bank also offers similar option with some different name.

    Once again thanks for your article.


    1. Raju

      IDBI calls it Sweep In account , not sure about Indian bank


      1. Murali says:

        Hi Manish

        How to avail this facility if we already have a savings bank a/c (salary a/c) with idbi.


        1. Talk to their customer care !

    2. Hi Raju,

      Some of the banks that offer this product under different names include:
      IDBI Bank – Sweep-in Savings Account
      Axis Bank – Encash 24
      Union Bank – Union Flexi Deposit
      HDFC Bank – Super Saver Facility
      Bank of India – BOI Savings Plus Scheme
      Oriental Bank of Commerce – Flexi Fixed Deposit Scheme
      State Bank of India – Multi Option Deposit Scheme
      Allahabad Bank – Flexi-fix Deposit
      Bank of Maharashtra – Mixie Deposit Scheme
      Corporation Bank – Money Flex
      United Bank of India – United Bonanza Savings Scheme

      This list is a little old. If any bank has withdrawn the product or changed the name for the product then I am not sure of it.

      Best Regards
      Gopal Gidwani

      1. Gopal

        Thanks for the info , I have added it on the main blog


  205. Hitesh says:

    I have checked at hdfc website and it states that it has some service charge attached to this sweep in facility. In that case the interest % may reduce more.

    1. Hitesh

      Can you give me the link you are checking, I looked at this site :

      also in general this facility is not chargable , but if bank decides to charge for it , I am not sure if we can do anything ,you have to choose or not-choose .


      1. Sidharth says:

        Hi manish,

        Once again very informative article.

        I am just 1 month old to this website & so excited that, i read all the articles from 2007 in just 1 week.
        its help me a lot in my finanancil planning
        ex-no. of mutual funds reduced to 10 from 17.
        -restart few discontinued SIP.

        Thanks for all your hard work.

        1. Sidharth

          Thanks for sharing your experience, I am happy that you took some actions by getting motivated from this blog . thats really inspiring , these actions are the thing which will take your financial life from one level to another .

          Keep reading 🙂


      2. Nitin Gupta says:

        The hdfc link, has a statement “You can avail of both, a SuperSaver Facility as well as a Sweep-In Facility if you have linked your deposits to a Savings Facility”. It means that super saver and sweeo in are different.
        I am confused.

        1. Nitin

          Are you NRI ? because Super Saver seems to be a Sweep-in kind of facility for NRI customers from HDFC


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