Introduction:
In 2025, banks are getting smarter — and so should your savings.
One of the most powerful yet lesser-known features offered by banks today is the Auto Sweep (also called Auto Swipe) facility.
It’s a simple feature that allows you to automatically earn higher interest on idle funds in your savings account — without losing liquidity or convenience.
Let’s understand how it works and why it can be a game-changer for your money management.
💡 What is Auto Sweep in Banking?
Auto Sweep (or Sweep-in Facility) is a feature that links your Savings Account with a Fixed Deposit (FD) account.
When your savings account balance crosses a certain limit, the excess amount is automatically transferred (or “swept”) into a fixed deposit to earn higher interest.
✅ Example:
If you set a sweep limit of ₹50,000 and your savings balance reaches ₹70,000 — ₹20,000 will automatically move to a fixed deposit, earning FD-level interest (e.g., 6.5% instead of 3.5%).
⚙️ How Auto Sweep Works (Step-by-Step)
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Set a Threshold Balance – You decide a minimum balance limit (e.g., ₹25,000).
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Automatic Transfer to FD – Any amount above this limit is converted into an FD in multiples (say ₹1,000).
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Earn Higher Interest – The swept-in amount earns interest like a regular fixed deposit.
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Auto Reverse (Sweep-Out) – If your savings account balance drops below the limit, the bank automatically breaks the FD (in reverse order) to cover the deficit.
This means your money is always available, but it earns more interest when not in use.
💰 Benefits of Auto Sweep Facility
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Higher Interest Earnings: Idle funds earn FD-level returns.
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Easy Liquidity: Access your money anytime — no lock-in period.
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Automated Savings: No manual transfers needed.
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Better Cash Flow Management: Keeps savings and investments balanced.
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No Penalty on Withdrawals: Partial FDs are broken automatically as needed.
📉 Example Calculation
| Account Type | Interest Rate | Amount | Annual Interest |
|---|---|---|---|
| Normal Savings Account | 3.5% | ₹1,00,000 | ₹3,500 |
| Auto Sweep Account (FD rate 6.5%) | 6.5% | ₹1,00,000 | ₹6,500 |
💡 By using Auto Sweep, you earn ₹3,000 more annually — automatically!
🏦 Banks Offering Auto Sweep Facility in India (2025)
Many leading banks in India provide this smart feature, such as:
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SBI (State Bank of India) – Savings Plus Account
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HDFC Bank – Sweep-in Facility
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ICICI Bank – Money Multiplier
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Axis Bank – Encash 24
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Punjab National Bank (PNB) – Sweep Account
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Kotak Mahindra Bank – ActivMoney
⚠️ Things to Keep in Mind
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There’s often a minimum sweep-in amount (e.g., ₹10,000).
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Breaking an FD early may affect interest slightly.
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Some banks may charge for this feature; check terms carefully.
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Works best for people maintaining higher average balances.
🧩 Who Should Use Auto Sweep?
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Salaried individuals with fluctuating monthly balances.
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Freelancers or small business owners who receive irregular income.
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Anyone who wants better returns without risk or effort.
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Conclusion:
The Auto Sweep (Auto Swipe) facility is one of the smartest tools for modern banking.
It ensures your idle money doesn’t sit idle — it works for you, earning extra income while staying fully accessible.
In 2025, make your money management effortless by activating Auto Sweep in your savings account and enjoy the best of both worlds: liquidity + higher returns.