Amount Kept in Savings
₹ 25,000
Amount Swept into FD
₹ 2,75,000
Total Interest Earned
₹ 20,000
Total Combined Maturity Value
₹ 3,20,000
About the FD Sweep-In Interest Calculator
Our free FD Sweep-In Interest Calculator helps you evaluate earnings from a sweep-in facility linked to your savings account. A sweep-in fixed deposit automatically transfers idle funds exceeding a predetermined threshold into a higher-yielding fixed deposit while maintaining immediate liquidity for your day-to-day banking needs.
How Sweep-In Fixed Deposits Work
When you maintain funds in a sweep-in bank account:
- Threshold Limit: Any surplus money above your specified threshold limit is automatically converted ("swept in") into a fixed deposit earning higher interest.
- Liquidity & Reverse Sweep: If you issue a check, make an online transfer, or withdraw cash that exceeds your savings balance, the bank automatically breaks ("reverse sweeps") only the required portion of the FD to cover the transaction, while the remaining FD continues earning higher interest.
How to Use the Calculator
Simply enter your fund details or use the range slider:
- Total Available Funds: The total lump-sum cash you hold across your linked accounts.
- Savings Threshold Limit: The minimum balance maintained in your low-interest savings account.
- Interest Rates: Input the respective annual percentage rates for your savings account and sweep-in FD.
- Holding Tenure: Choose between Years or Months using the toggle switch.
Click the Calculate Returns button to instantly view your allocated savings balance, swept FD amount, total interest earned, and combined maturity value.
Frequently Asked Questions (FAQs)
Are there any penalties for reverse sweeping an FD?
Most major banks in India do not charge premature withdrawal penalties on sweep-in FDs for the portion broken to cover a shortfall, though the broken portion may earn a slightly lower applicable rate for the exact days it remained active.
Is sweep-in facility better than a regular savings account?
Yes. Regular savings accounts offer minimal interest (typically 2.5% to 3.5% p.a.), whereas sweep-in accounts allow your idle funds to earn fixed deposit rates (6% to 7.5% p.a.) without locking up your liquidity.
How is interest taxed on sweep-in FDs?
Interest earned on sweep-in fixed deposits is added to your total income and taxed according to your individual income tax slab rate.
