This Article is From May 25, 2018

To Earn Higher Interest Rates, Open SBI Savings Plus Account

When you are unsure about the amount you can dispense with from a savings bank account, you can choose the flexi fixed deposit (FD) option

To Earn Higher Interest Rates, Open SBI Savings Plus Account

The SBI savings plus account is maintained in the multiples of Rs 1,000

If you want your savings bank account to garner the interest rate payable on a fixed deposit (FD), you can open an SBI (State Bank of India) savings plus account. In the SBI savings plus account, any excess amount in the savings bank is automatically transferred to the fixed deposit (FD) in the multiples of Rs 1,000. In SBI savings plus account, the savings bank account is linked to the multi option deposit (MOD) account. The surplus fund above the threshold limit from the savings bank account is transferred to term deposits opened in multiples of 1,000. The term deposit/fixed deposits (FD) range from one year to five.

In common parlance, it is also known as sweep-in facility or flexi fixed deposit (FD). When you open the SBI savings plus account or HDFC Bank Sweep-in fixed deposit or ICICI Bank flexi deposit, it's the same concept wherein the amount above a threshold (that varies from bank to bank) is transferred to the fixed deposit (FD). And in case the amount falls short of the minimum account balance, the deficit is transferred from the fixed deposit (FD) so as to maintain the minimum savings account. For the details on the tax savings fixed deposit (FD) of SBI, ICICI Bank, HDFC Bank, you can read here.   

SBI Bank Fixed deposit rates
TenorsExisting for Public w.e.f. 28.02.2018Revised For Public w.e.f. 28.03.2018
7 days to 45 days5.755.75
46 days to 179 days6.256.25
180 days to 210 days6.356.35
211 days to less than 1 year6.46.4
1 year to less than 2 year6.46.4
2 years to less than 3 years6.56.6
3 years to less than 5 years6.56.7
5 years and up to 10 years6.56.75

HDFC Bank Sweep-in Facility

When you use the sweep-in facility on your bank savings account, you can link multiple accounts to your savings account. Any deficit in your savings account can be brought in from the term deposit. The HDFC Bank follows the last in first out (LIFO) scheme of transferring funds from the term deposit to savings bank account.

There are several benefits of sweep in facility. The biggest is that the customer is entitled to earn higher interest on the money that is parked in the fixed deposits (FDs) when it is swept-in. One must remember that the customer must maintain the minimum account balance (MAB) for using the sweep-in facility. It is interesting to know that one can open basic saving bank deposit (BSBD) also known as the zero-balance accounts with SBI and HDFC Bank. However, the sweep-in facility can't be availed in the zero balance account. 

HDFC Bank Fixed deposit rates
Period< 1 Crore
Interest Rate **Senior Citizen Rates 
(per annum)(per annum)
7 - 14 days3.50%4.00%
15 - 29 days4.25%4.75%
30 - 45 days5.50%6.00%
46 - 60 days5.75%6.25%
61 - 90 days5.75%6.25%
91 days - 6 months5.75%6.25%
6 mnths 1 day- 6 mnths 3 days6.00%6.50%
6 mnths 4 days6.00%6.50%
6 mnths 5 days- 9 mnths6.00%6.50%
9 mnths 1 day- 9 mnths 3 days6.00%6.50%
9 mnths 4 days6.00%6.50%
9 months 5 days - 9 months 15 days6.00%6.50%
9 months 16 days6.25%6.75%
9 months 17 days < 1 Year6.25%6.75%
1 Year6.85%7.35%
1 year 1 day - 1 year 3 days6.50%7.00%
1 year 4 days6.25%6.75%
1 year 5 days - 1 Year 15 Days6.25%6.75%
1 Year 16 days6.25%6.75%
1 year 17 days - 2 Years7.00%7.50%
2 years 1day - 2 Years 15 days7.00%7.50%
2 Years 16 days7.00%7.50%
2 years 17 days - 3 Years7.00%7.50%
3 years 1day - 5 years7.00%7.50%
5 Years 1 Day - 8 Years6.00%6.50%
8 Years 1 Day - 10 Years6.00%6.50%

The minimum threshold limit for transfer to MOD is Rs 35,000 in the SBI account. After that a minimum of Rs 10,000 is transferred to the multi option deposit. The transfer happens in the multiples of Rs 1,000. It doesn't mean that the term deposit can't be withdrawn.

The customer can withdraw/ break open of the deposit. For this purpose, the customer must mention as to what principal to be followed: "first in first out" or "last in first out".

HDFC Bank official website says that if there is a lien marked on the Fixed Deposit, the sweep-in will not be maintained.

ICICI Bank Flexi-fixed deposit

The ICICI Bank flexi fixed deposit (FD) account can be opened for 15 days to 91 days (in days) as per the standing instructions of the customer.

ICICI Bank Fixed deposit rates
TenureGeneralSenior Citizen
7 days to 14 days44.5
15 days to 29 days4.254.75
30 days to 45 days5.56
46 days to 60 days5.756.25
61 days to 90 days66.5
91 days to 120 days66.5
121 days to 184 days66.5
185 days to 289 days6.256.75
290 days to less than 1 year6.57
1 year to 389 days6.67.1
390 days to 2 years6.757.25
2 years 1 day upto 5 years6.57
5 years 1 day upto 10 years6.57
The flexi deposit account is a term deposit and the rate applicable on term deposit as per rules will be paid. Senior Citizens will also get additional benefit as per rules.