Flexi Fixed Deposit Calculator
Compare interest returns of an Auto-Sweep Flexi FD versus a regular savings account. Discover how much extra profit you earn without losing liquidity.
🔄 Flexi FD Parameters
Auto Sweep ActiveAmount retained in savings account; balance above this is swept into high-interest FD.
Why Flexi FD is Better
By keeping a minimum balance in savings and sweeping the rest into a Flexi FD, you earn double the interest rate on surplus cash while maintaining 100% ATM/UPI withdrawal liquidity.
What is a Flexi Fixed Deposit (Auto Sweep Facility)?
A Flexi Fixed Deposit (also known as Auto Sweep-in / Sweep-out facility in banks like HDFC, SBI, ICICI, and Axis Bank) is an automatic facility that links your savings account to a term deposit. It gives you the best of both worlds: high FD interest returns and savings account liquidity.
1. How Auto Sweep-in Works
Whenever your savings account balance crosses a specified threshold (say ₹25,000 or ₹50,000), the surplus funds are automatically converted into a Fixed Deposit (in multiples of ₹1,000 or ₹5,000), earning higher term deposit interest rates (approx 7.0% - 7.5% p.a.).
2. How Auto Sweep-out Works
If you issue a cheque or withdraw cash via ATM/UPI exceeding your savings balance, the bank automatically breaks the exact required units of the Flexi FD (without breaking the entire FD) and transfers money back to your savings account instantly.
Frequently Asked Questions (FAQs)
Do I pay a penalty when funds are swept out of a Flexi FD?
Most banks do not charge a premature withdrawal penalty on Auto-Sweep FDs. However, interest on the swept-out amount is paid at the applicable rate for the exact period the deposit remained with the bank.
How do I enable Flexi FD on my savings account?
You can enable Auto Sweep online via net banking or mobile banking app (e.g., HDFC MoneyMaximizer, SBI Multi Option Deposit Scheme MODS, ICICI Money Multiplier) or by visiting your branch.
Is TDS applicable on Flexi Fixed Deposits?
Yes, since the swept-in funds are held as Fixed Deposits, TDS rules apply if total interest earned exceeds ₹40,000 in a financial year (₹50,000 for senior citizens).