How To Transfer Money From Auto Sweep Account In SBI?

An auto-sweep facility links your savings account to a fixed or term deposit so that any surplus above a set threshold automatically moves into a fixed deposit to earn higher interest. When your savings account needs more funds (for withdrawal, cheque, or other debit), the required amount is “swept back” from the fixed deposit into your savings. So, how to transfer money from auto sweep account in SBI? 

To transfer money (withdraw or use money) from an auto-sweep account in SBI (i.e. move money back from the FD component into your savings account), these are the things to know / steps to follow:

1. SBI’s auto sweep / MODS has a “threshold” amount (above which surplus funds get swept into the term deposit) and a “resultant balance” that must always be maintained in your savings account.

2. If your savings account balance dips below that resultant balance due to a debit transaction, SBI will reverse-sweep from the fixed deposit to bring the savings account up to the minimum.

3. If you try to make a withdrawal or payment, or if there’s a cheque or debit, and your savings account does not have enough funds (below the threshold/residual), the bank will automatically redeem part or all of the FD (term deposit) portion to cover the shortfall. This process is known as “reverse sweep”.

4. If you want a larger sum (more than what auto reverse sweep would automatically cover), you can instruct the bank (via branch, or via your internet / mobile banking depending on what SBI offers) to break the fixed deposit portion.

5. The bank applies FD interest rate rules (which may include penalties if breaking before maturity) on the amount broken.

6. The fixed deposit portion will earn FD interest for the duration it stayed in TD / MOD. If you redeem early (reverse sweep / manual break) before the maturity period, then interest may be calculated for the actual time and sometimes lower for that portion, also possible premature withdrawal penalty or less favourable rate may apply.

7. When your Savings Bank (SB) account linked to MOD has a debit demand (cheque/ATM/online debit) that your SB balance cannot meet, SBI automatically reverses (“breaks”) the required portion of the MOD (Fixed Deposit) to bring sufficient funds into the SB account.

8. You can also withdraw money directly / break part of the MOD deposit proactively. Features allow you to withdraw from MOD in multiples of Rs. 1,000 (or units applicable, e.g. Rs. 5,000 in some versions).

9. Additionally, upon maturity of the MOD, the remaining balance (principal + interest minus any earlier withdrawals) is automatically credited to your linked SB account. 

You need not dismantle the whole auto-sweep or break the entire FD. Only enough amount would be transferred back to your savings to satisfy the withdrawal / payment. The rest remains in term deposit.

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Hey Pal,

Do you have an auto sweep account in SBI? You must be wondering how to transfer money from auto sweep account in SBI? Let me assist you with this. A savings account and a fixed deposit account are combined in the auto-sweep facility. It benefits from having both facilities available. Your savings account is connected to a fixed-deposit account with an auto-sweep account, and a set spending cap is established. 

Anytime the balance in the savings account exceeds that predetermined threshold, the excess funds are immediately moved into the fixed deposit. By doing this, you can increase the interest rate on the money in your savings account over what it would have been earning in a standard savings account.

The threshold limit, which you can specify, is the maximum amount you're willing to keep in your savings account. Anytime your balance exceeds the threshold limit, the excess will be deposited into your FD account. Sweep-in is the technical term for this procedure. The accounts each receive their own interest payments. The benefit of a sweep facility, however, comes into play in this situation; transferring into an FD does not result in the loss of the amount's liquidity. When you request money from your account in excess of your threshold limit, the requested amount will be moved from your FD account back to your online savings account. This process is referred to as a "reverse-sweep" in cricket, just like the phrase.

You can transfer money from an auto sweep account just like any other fund transfer. However, if there is any deficit in the account balance then automatically money will be sweeped out from the most recent deposit. 

I would like to conclude here about how to transfer money from auto sweep account in SBI. I hope this helps:)

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