Sweep-in FD
A facility that moves spare savings balance into a fixed deposit, and back when you need it.
A sweep-in FD tries to give you the best of both: FD interest on cash you are not using, and savings-account access when you need it. The bank does the moving for you. Thresholds, minimum amounts and early-break terms are set by each bank, so the details on your bank’s sweep terms page matter more than the name.
Questions people ask
What is a sweep-in FD?
A sweep-in FD links a fixed deposit to your savings account. When your balance goes above a level you set, the extra moves into an FD and earns FD interest. When your balance runs short, part of the FD breaks back into the account automatically.
Is a sweep-in FD a good place for an emergency fund?
It can suit one, since the money earns FD interest but stays reachable without you doing anything. Check your bank's terms: the threshold, the minimum sweep amount, and the interest paid on the portion that breaks early all vary by bank.
Does breaking a sweep-in FD cost a penalty?
That depends on the bank. Some pay the applicable rate on the part that breaks, others apply a reduced rate. Your bank's sweep terms say which, so read them before you switch it on.
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