To Earn Higher Interest Rates, Open SBI Savings Plus Account

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