Reviewed by: Fibe Research Team

If you often leave extra money sitting in your savings account, you may be losing out on better returns. That’s where the automatic sweep feature comes in. Many people search for what is auto sweep facility because it promises higher interest without you having to lock your money away.
You can think of it as a smart upgrade to your regular savings account. Whenever your balance crosses a limit chosen by you, the bank quietly moves the extra amount into a small fixed deposit. Your money starts earning a higher FD rate while you still enjoy the freedom to withdraw anytime. It’s simple, effortless and a great way to make your idle funds work harder.
An auto sweep facility is a smart banking feature that helps you earn more from your savings without changing the way you use your account. It works by connecting your savings account to a small FD in the background. When your balance goes beyond a limit you set, the extra amount is automatically shifted into this FD.
Two simple actions make the feature work:
This way, you enjoy better returns on your idle funds while still having complete access to your money whenever you need it.
Here’s how the auto-sweep facility works:
Here’s an example:
If your threshold is ₹25,000 and your balance comes to ₹40,000, then the excess ₹15,000 will be moved to an FD automatically. So if the FD interest is 6 percent, you earn higher returns on this ₹15,000 instead of the usual savings rate.
Here’s an easy step-by-step guide to activate your auto sweep facility:
Step 1: Log in to your bank’s net banking or mobile app
Step 2: Look for the ‘Deposits’ or ‘Sweep Facility’ option in the menu
Step 3: Choose the savings account you want to link
Step 4: Enter basic details like your threshold amount, sweep cycle and start date
Step 5: Verify the request using the OTP sent to your registered mobile number
Step 6: Submit the request. You’ll receive a confirmation once the facility is activated
Also Read: Best Banks For Savings Accounts In India
Here are some of the pros and cons of availing of the facility of auto sweep in a savings account:
| Pros | How It Helps |
|---|---|
| Higher returns | Extra funds earn FD-like interest instead of the lower savings rate |
| Easy liquidity | You can withdraw anytime. The bank automatically uses sweep-out if needed |
| Flexibility | You can choose your own threshold limit and FD tenure |
| Better money management | Idle funds get utilised automatically without any manual effort |
| Cons | What to Know |
|---|---|
| Possible charges | Some banks may apply a fee for activating or using the sweep facility |
| Premature FD penalty | Breaking the FD early may lead to a small penalty deduction |
Many financial institutions in India offer this feature on savings accounts. Here are some of the leading banks allowing you to opt for the auto-sweep facility:
You can visit your bank’s branch or contact customer support to know if the facility is offered for your savings account. You can also visit the bank’s website and log in to your account.
The money lying in an auto sweep account helps you create a corpus for emergency expenses or long-term goals. However, if you ever fall short on cash for your lifestyle needs, you can also rely on Fibe’s quick and hassle-free Instant Cash Loan.
You can get up to ₹5 lakhs and enjoy instant disbursal with affordable interest rates and flexible tenures going up to 36 months. Download the Personal Loan App or log in to our website to secure a loan with an easy and simple application process.
The auto sweep in a savings account is ideal if you often have a large balance in your account that you don’t need to access frequently.
The minimum balance in an auto-sweep savings account depends on the bank and your account type.
Yes, an auto sweep account offers the same level of liquidity as a regular savings account, which means you can easily withdraw the excess money whenever you need.
Yes, the automatic sweep facility offers interest on the savings account as well as the FD account created after the sweep-in. Moreover, the auto sweep account interest rate is generally higher than that of a regular savings account.