A Sweep In/Sweep Out Facility helps you earn a higher rate of interest on your idle funds whilst your money remains accessible. How? It combines the benefits of a savings account and fixed deposit by automatically transferring surplus funds from your savings account into a fixed deposit once the balance exceeds a predefined threshold. This helps you earn a higher rate of interest on your idle funds. That’s not all. It also transfers funds back to your savings account when your balance falls short. This ensures you have uninterrupted access to your funds, whenever you want!

Let’s understand this with an example. Suppose you opt for Sweep In/Sweep Out feature (also known as Auto Sweep facility) and set a balance threshold of ₹30,000 on your savings account. 

• If your balance increases to ₹70,000, the excess ₹40,000 gets directly swept to a high-interest-yielding fixed deposit. This is called the “sweep out” feature.
• But if your balance falls to ₹20,000, ₹10,000 is automatically swept back from that fixed deposit to restore your savings account balance to predetermined threshold. This is called the “sweep in” feature.

The Auto Sweep feature helps you enjoy the best of two worlds: Higher returns on surplus funds and the flexibility to access your money whenever needed. Let’s have a look at some of its key benefits: 

Higher Returns: Instead of letting excess funds sit idle in your savings account, the Auto Sweep facility directly moves the surplus funds into the linked fixed deposit. This allows you to earn a higher interest rate than a regular savings account.

Simple Activation: You can easily set up and manage the Auto Sweep feature through the IndusInd Mobile Banking App, subject to account eligibility, KYC status and applicable bank policies. You can also visit the nearest IndusInd Bank for setting up your Auto Sweep Facility.

Maximum Liquidity: The Auto Sweep facility helps strike a perfect balance between liquidity and earnings. While your excess funds earn higher interests through the linked FD, you can still access them whenever additional funds are required in your account.

Customisation: You can customise your account balance threshold from the available range based on your financial goals and cash flow needs. This ensures that you always have sufficient funds for your day-to-day transactions whilst your surplus funds work for you through the linked FD.

Better Cash Management: With the automatic sweep in and sweep out feature, you don’t have to manual move funds between your savings account and linked fixed deposit. It makes it super easy to manage your surplus money.

No Withdrawal Charges: You can easily access funds from the linked fixed deposit as there are no penalties on “Sweep In” transactions. This ensures convenient access to your money and greater financial flexibility.

Interest Flexibility: You earn interest on your Sweep-In/Sweep Out fixed deposit even if you withdraw a portion of the deposit. The remaining balance continues to earn interest at the applicable FD rate, helping you maximise returns on your surplus funds.

If you don’t want your excess funds to sit idle, check whether you meet the eligibility parameters for opting for a Sweep In/Sweep out facility:

Before opting for the Auto Sweep feature, it is important to understand how this facility works, how the interest rates are calculated and some other key details. Here are some key terms and conditions you should know:

1. Sweep Out: Excess funds above the prescribed threshold will be automatically swept out from your savings account to the linked fixed deposit.
2. Sweep In: Necessary funds will be automatically transferred from the linked FD into your savings accounts whenever there is a shortfall in the account balance.
3. Interest Rates: Sweep FD that remains active for a 180-day tenure earns interest of 6% p.a. Interest is paid based on the actual FD run period and applicable rates.
4. TDS on interest: TDS will be applicable on any interest earned through the Auto Sweep facility. The TDS will be levied as per the prevailing income tax regulations governing fixed deposits.