How to earn upto 9% interest on your Savings account Balance?



Yes. You read it right. In this post, I will explain how to earn upto 9% interest on your idle savings account balance.


Option 1  –   Choose High Interest Saving Account

Typically banks give 4% interest on savings accounts. However, after RBI de-regulated the savings account interest rates, few banks are offering higher rates.

Bank / Rates Balance upto 1 lakh Balance above 1 Lakh
Yes bank 6% 7%
Kotak Bank 5.50% 6%
IndusInd Bank 5.50% 6%

So, you can get maximum of 7% interest from your savings account.


Option 2  –   Choose Sweep in / Out Facility on your Savig Account

But, let’s see how you can increase your returns upto 9% using “Sweep In/Out” facility.

A.  What is this “Sweep in / out” facility?

This is like a combination of Savings account & Fixed Deposit account.

It combines benefits of both accounts –

  • High Returns of Fixed Deposit &
  • Quick encashment (Liquidity) of Savings Account.


B. How it works?

Most of the times, you have idle money sitting in savings account than you actually use it. But, you don’t invest it, because you think that you might need it, for e.g. in emergency.

So, in such cases, “Sweep in/out” facility comes handy.

Sweep facility allows you to transfer funds (automatic / manually) from your saving account to a “Virtual” Fixed deposit account and earn high interest rate.

And it automatically transfer money back from FD to savings account as and when required (cash withdrawal/ cheque etc).

1) An FD is made for the whole amount which earns higher interest rate.

2) When you withdraw money, an equivalent amount is reduced from your FD & auto transferred to saving account. You earn FD interest on that amount till the date of withdrawal. For the balance amount, you continue earning FD rate of interest.

C. Let’s understand through an example

Suppose you have savings account balance as on 01-Apr & then withdraw money periodically as per schedule below:



In case of just normal saving account, you will earn interest of Rs 3400.  However, if you avail sweep facility, your returns will increase to approx Rs 7487.


D. What will happen when I withdraw money / issue cheque / online purchase?

Suppose you want to withdraw / issue cheque of Rs 25000. Don’t worry; your cheque WILL NOT bounce.

The money will be swept-in from your FD account to your saving account automatically.

E. Points to note

  • Some banks define the minimum saving bank limit above which the FD is made automatically while others allow you to choose minimum saving balance.
  • Some banks allow the FD for defined tenure only while others allow you to choose FD tenure.
  • Some banks sweep-in the FD into multiple of 5000 or 10000, while others do it in multiple of Rs 1.
  • Some banks break the FD in First-in-First-Out basis while others do it on Last-in-First-out basis.
  • When the FD is broken before the original term, you get bit less than original interest as the bank deduct penalty from the interest. e.g. lets say, the 1 year fd rate is 9% and 6 monmth FD rate is 8%,  if you withdraw money after 6 month, you will get 8% – penalty = 7.% (for example) – which is still better than Saving Bank rate.

F. How to enable this Sweep in/out facility

Different banks have different names for such accounts like Supersaver facility, HDFC SavingMax Account, Kotak ActivMoney, ICICI Money maximiser etc

You have two options:

1) Auto Sweep-out facility & Sweep inIn this facility, Bank will automatically sweep-out/ transfer money from your saving account to Fixed deposit, once your saving balance is above threshold limit say Rs 50,000.

Visit your branch and ask your relationship manager to enable the “Auto Sweep / Sweep-in” facility on your account. Sometimes, they will enable this facility on your existing account or they can open a new savings account with this facility.  To open a new saving account, you just need to sign the form as bank already have your documents.

Advantanges: FD is created automatically once the balance of saving account is above threshold limit.

Demerits1) You loose FD interest on amount defined as threshold limit (just savings interest on that amount)

2) Tenure of FD is standard set by bank. Normally 1 year. But sometimes you get higher interest if you make an FD for odd periods like 1 year 16 days etc.

2. Just Sweep-in facility: In this facility, you just have to create a normal FD online and then select this FD to enable sweep-in option. This is default feature in many banks.

Merits: You get FD interest on whole amount.  Also, you can choose your tenure of FD based on higher interest rates.

Demerits: You have to create FD yourself through netbanking. It is not automatically done. So you need to remember to make FD when you get money in your saving account.


Read my other post –  SBI Savings Plus Account with MOD High Interest Scheme – Details & Review

See my other post on – How to use Sweep-in facility in HDFC Bank via Net-banking (with screenshots)

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  1. Hi my mom is a house wife.After the expiry of my father she received PFs,gratuity from bank where he was working .That amount was deposited in Savings bank A/C for which she has received interest of approx 80k. This is her only income, for this should we file return.

  2. Is it possible that you are able to calculate interest earned in sweep in sweel out facility.
    Is there some software/ formula

    • Hi, It will depend on the number of days the amount was in sweep in/ out. If is is more than 3 months then it will compund, otherwise simple. also the Interest rate will eb different for durations.

  3. HI!! does sbi have sweep facility? if yes, how to avail that ? and is there any condition that we should have some minimum balance to get sweep facility?

    • LIFO breaking of FD means that the Last FD will be break first in case of shortfall.
      1) You have FD for 10000 for 1 year @ 9% starting on 01-Jan-2014
      2) You have another FD for 10000 for 1 year @ 9% starting on 01-Jul-2014

      If you have shortfall in your account, first the money will come out of 2nd FD made on 01-Jul (in LIFO Method).

      This will ensure that old FD is not broken.

  4. Hi Vivek,

    You’re really good in answering. It’s me again for SBI related query now 🙂

    Last day after reading your post i enable e-MOD facility in my SBI account using netbanking. But neither it asked for threshold limit here and neither it took all the money lying in saving account to this e-MOD. It simply created another deposit account just like an e-FD. Where am i doing wrong?

    Again , how e-MOD differs from SavingPlus account of SBI.

    • Hi Saurabh,

      When you create an e-MOD under SBI Netbanking, you need to choose 3rd option. see below

      In that case, you need to enter the amount & tenure for which you need to make the e-MOD deposit. You can issue cheque from your saving account and if money is short in Saving, the money from this e-Mod will come automatically.
      2) SavingsPlus Account is where the money is moved automatically to e-MOD account above defined threshold. See details in post bleo:

      • Hi,

        Can u please tell me what amount they are asking in above given snapshot. It is not clears, is it asking threshold amount??
        I went to home branch of my SBI account to activate MOD, they said – if u want to open MODS through bank u have keep 35,000/- as minimum threshold amount.
        They also said if u open through Net Baking (online) then u can even make 1000/- as your threshold amount. Is it true???…
        So I got confused where should I mention threshold amount a and how will come to know minimum balance which should be maintained in the account .
        Is 10,000/- minimum balance applied every were.

        I wanted to activate MODS for 2 years with threshold amount 20,000/- (assuming 10,000/- is minimum balance need to be maintained in the account)

        Please help, waiting for you reply.


        • Hi Rama,

          There are 2 options:

          1) Automatic Sweep-in/out based on threshold – In this case, the amount above a certain threshold (25000) will AUTOMATICALLY sweep into FD.

          2) Manual FD Creating with Auto sweep out option – Here there is no auto creation of new FD. You manually need to create FD from netbanking and enable auto sweep out. If there is shortfall in Saving account, then money will come from this FD.

          • hi vivek,
            I already have a HDFC saving Account and to maximixe the interest I want to add a liquidated FD Account after following your blog.

            But need a help to choose from HDFC SavingMax and normally creating FD and activating sweep-in which will be better I have 1.20 L in my accnt.

            1.HDFC SavingMax Account :Need to maintain 25k in saving accnt below that penalty charges will be there. so In this case 1 lakh is the default threshold for saving from bank and after that only 20k will be in FD right? and as I will purchase from 1 lakh it will deduct like 1 L – 10k = 90k which will again sweep-in by FD .so I will have 10 k as FD won’t it be less ?

            2.HDFC saving Account linked to FD created manually and add sweep-in :In this Need to maintain only 10k in saving account below that penalty will be charged and in this threshold can be maintain manually isn’t it. so I can lower down the threshold from 1 L to 30k which will give 30K to saving account and 90k to FD so when I purchase it will get deducted from 30k like 30k-10k=20k (which is still more than 10k min bal) and 10k sweep in from 90k to maintain the threshold which will left 80k in FD which is still better.
            but in this auto sweep-out is not possible as salary credit in next month it will continue to add in saving account to move the exceeded amount again I have to create a FD and link it.

            Please help me if my understanding is wrong,which one will be more suitable

            Thanks in advance

          • Your understanding from point 1 is correct.

            But regarding point 2, there is no threshold defined. You can put any amount in FD and enable sweep-out. When the saving balance is 0, then money will come out from the FD. So, when you make purchase of 10K, the saving balance will be 20K and FD will remain at 90K.

  5. Hi vivek,

    Yes , i have followed same steps as mentioned above.

    So, it mean e-mod is just like a sweep in of hdfc.

    Auto Sweep out above threshold is not a feature of e-mod? am i correct only sweep in is available.


  6. Dear
    Currently I m working with a pharmaceutical company. company providing Gross salary approx 25k but deducting pf on 6500 only.
    After this new notification by epfo any change will take place, that we wants to go on more than 15 k.
    Plz replay.

    • Hi Vikash, With the new notification, your company will have to deduct PF on 15000. they might not increase your salary but re-structure your gross salary.
      In such case, it may reduce your take home salary. That will not be good for employees.

      • Hi Vivek,

        I work in a delhi based pvt. ltd. co., my monthly gross is approx 35k, but basic is 6.5k (it’s fixed & doesn’t increase with increment). does this new notification would help me for investing in pf.Is there any law to increase basic as well?

        Awaiting your reply.


  7. Hiiiii sir , what is the meaning of
    avail bal:5000,
    Ledger bal:5000
    Idbi bank account
    What is it mean sir can you explain
    When i went to i select balance enquiry the above statement what is avail bal ledger bal and ffd

    • Hi Surya. it shows the balance in your account.
      available balance – amount available for withdrawal
      ledger balance – amount in banks ledger
      normally above are same

      ffd – may be fixed deposit balance

  8. Hi,
    Thank you for this post. My question is regarding minimum balance, which is 10,000 in this account. If I have 1 lakh in e-mod FD, 10,000 in saving account and I issue a check for 25,000. Now my saving account will debit 10,000 and 15,000 will be debited from FD.
    After this will the bank shift 10,000 to my saving account from the FD (to maintain minimum balance) automatically or will I have to do this on my own? Because if this does not happen my saving account balance will be zero, and I will have to pay charges.

  9. Dear Sir,

    Please guide me in the below situation.

    Recently i sold my house for 75lakhs. I have all the liquid money. I would like to enjoy my life with my family(6 members).
    i would like to live on with the interest i get on 75 lakhs. I dont want to lose single rupee as tax or something. All six members have bank accounts, and my idea was to distribute 75L in 6 accounts and avail interest which will be ample to lead a life with the interest amount. Please guide me how to distribute and how to choose the account and how to get maximum amount as interest.
    Please suggest which bank and which type of account could fetch me all benefits that could satisfy my requirements. Also, i could access my principal amount of 75 lakhs anytime in case of emergency.
    I decided to live like this as i want to explore all the happiness with family and also acheive all the hobbies i would love to with no tension and second thought regarding earning.
    Please advise me regarding this idea and suggest me a good way to fulfill my dream.

    Thanks in advance.

    • Hi Vishnu, As the minimum tax exemption slab is Rs 2.5 lakh, we can safely assume that FD of Rs 25 lakh will give an interest of less than Rs 2,5 lakh limit.

      So if you distribute money to 3 different members, then each of them can make FD of Rs 25 lakh and eaen interest.

      Note that if the amount given to wife / minor children without any consideration, then any interest earned will be clubbed to your income.

      • Dear Vivek,

        few more queries:
        * will i get the interest everymonth to use like a salary
        *Which type of FD should be done?
        * would it be possible to access the principal amount in case of emergency?
        * Will FD avail any charges/ penalties if withdrawn?
        Can you please elaborate how it works like an example. Consider this as my special Request and pls explain me.

        Thank you in advance.

        • Could you please let me know
          1) in which bank you have account or planning to have FD
          2) What will be your monthly income requirement
          3) for how long you can keep this money in FD?

          • Hi Vivek,

            Here are the answers

            1. Rite now i have accounts in SBI, Andhra Bank,canara bank,APGB and IDBI bank.
            2. My monthly requirement would be 50k to 60k. As half amount for rent, car and household expenses and the other half for chits.
            3. 2 to 5 years.

          • Hi Vishnu, If you make FD for Rs 75lakhs for Interest @9% , you will get approx Rs 56000 per month for your requirements.

            I think the best option is to split the amount into multiple FD as in case of emergency you can break required amount. For e.g. if rather than making 1 FD of Rs 25 lakh, you can make 10 FD of Rs 2.5 lakh each.

            Make sure every member has PAN updated in their bank account. because if no PAN is updated, bank will deduct TDS @20%.
            If PAN is updated Bank will deduct TDS @10% which you can claim by filing Income Tax returns.

  10. Dear Mr. Vivek Jain,

    I am an NRI and i have most of the time surplus cash laying in my savings account in india. Please suggest me how can i maximise the returns on my savings.


  11. Hello,

    If I open an FD for 10 lakh with HDFC for a Year and 1 Day and want to withdraw the FD in between say after 3 months or 6 months. How do I ensure there are no or minimum charges levied for breaking FD.
    On your earlier note regarding FD opened in the name of wife, who will club the interest with my income. Is it the Bank or the IT department?


    • 1) If you break the FD after 3 or 6 months, then you will be paid the interest rate applicable for 3 or 6 month period – penalty interest.

      2) The income will be clubbed as per Income tax rules. It is your responsibility to show correct income. If not, the same can be assessed by Income tax officer at time of scruitny.

  12. Wow! This is pretty awesome and easy to understand. I’m more of a saver than a spender and much of the money I make is sitting idle in my accounts. So I will definitely put the sum to better use now. Just one question, which bank do you recommend for the Sweep In facility? I mean which is the most hassle free service provider?

  13. Hi

    I given the application to my SBI faridabad Branch to convert my Saving account to Saving Plus account.
    Can you Please let me know how i can check whether my account is converted to saving Plus or not ?


  14. Hello Vivek,

    I have a MOD (multi option deposit) account in SBI with internet banking facility. How can I see the details of matured/closed fd accounts i.e. deposit and maturity date and amount. I could get the details of running fds but not of matured accounts.


    • Hi Amit,

      UCO bank has UCO Star Savings Deposit Scheme. This account has Auto Sweep Facility whereby above minimum balance Rs. 25000/-, in tranches of Rs. 5000/- Sweep in & Sweep out (maximum period 179 days) is made.

  15. Respected sir, I have opened a PPF account on my SBI savings account. I deposit Rs 1000 yearly in it as said to me by one of my friends. What is d use of this ppf account, I cannot withdraw my amount from it till 15 years pass.????? Is there any advantage of ppf account??

    Yours sincerely

  16. Hi Vivek

    Nice post 🙂 I have 2 queries regarding this.

    1. Any idea, how does SBI break MODs, FIFO or LIFO?
    2. Your experience on MOD vs FD. and is it a good idea to keep money in MOD even if you are not planning to take money out?

    Please let me know.


    • Hi Prashant,
      All MOD beak FD on a LIFO basis so that it is beneficial for customer.
      2) It is better to keep in MOD, as you get same interest as FD and flexibility to withdraw before maturity without any problems.

  17. sir can normal saving account can be converted to autosweep facility or do I require to open a new account for it. as I wanted to have long travk record.

    • it depends on each bank. some back , you can activate the facility in your existing account. In some cases, they ask to open a new account

  18. I m a 18 year old tenaager n i have collec5ed 20k uptil now so I wanna know how much rate of interest I could get on this per month

  19. Hi Vivek,
    what about CBI (Central Bank of India) ?
    Is the Sweep in/out facility available in CBI ?
    What is the current interest rate going on for that ?
    And how to activate that ? Can we activate it online ?

    • Hi Prakash,

      1) Central bank of India has a scheme called “CENT Uttam Scheme” whereby you can create FD for particular period but you can withdraw as and when required in units.

      2) They also have “CENT PREMIUM” SAVING DEPOSIT ACCOUNT but the quarterly average balance required is Rs 50000 / Rs 1 Lakh.

      3) If you have netbanking, you can also check if you can create an online FD and if there is an option to select “Sweepout option. I am not sure about this.

      • Hi Vivek,
        Thanks for quick reply.
        I’ve One more question….
        If CENT Uttam Scheme is that scheme, then what is MMDC (Money Multplier Deposit Certificate) in CBI?

        • CENT Uttam Scheme – you get liquidity and high returns. It is a flexible scheme that allows you to withdraw a part of the deposit amount as and when required.

          Money Multiplier Deposit Certificate (MMDC) – is normal FD and you need to withdraw it fully (you cannot do partial withdrawal)

  20. I’ve two cases to ask:
    1st case:
    If I’ve savings account in SBI and I activate MOD.
    If I put Rs.10k in FD for 3 months I’ll get Rs.750 interest @rate of 7.5%.
    Then again if I put the same amount in FD for 3 months, I’ll again get Rs.750 after 3 months.
    In this way I can earn Rs.3000 in a year on Rs.10000 whereas if I put Rs.10k for 12 months in FD I’ll get only Rs.900 for a year.
    So is it valid to put the same amount again and again in FD for 3months ?

    2nd case:
    If money in my savings account gets automatically sweeped out in FD and I need to use the money before 3 months, then will I get any interest on that? or only the penalty I’ve to pay without any earning?
    In automatic sweep out facility, how many days it require to sweep out and in ?

    • 1st case – you must be joking 🙂
      the interest rate of 7.5% is per annum. So if you put 10K for 3 months @7.5% p.a. you will get interest of Rs 187.5 (not rs 750)

      2nd case – if the money is swept in FD, and when you withdraw, you will get the FD interest for that period (minus) any penalty.

      What do you mean by – “In automatic sweep out facility, how many days it require to sweep out and in” ?

  21. Hello sir,
    I have opened saving plus account(salary) in SBI in August 14. Around 200k was deposited upto october 14 automatically. After that auto sweeping was stopped.So is this any limitation of account?? Another question is mobile no. related to mobile banking and internet banking must be same??

    • Hi Rupesh, there is no limit. How much amount is there in your saving account ? Above what threshold the money is sweeping in FD.
      2) Also, mobile number should be the same in your account

      • Sir,
        threshold amount is 10K . But, presently i have 100K+ in saving account. And i remember once saving balance became Rs. 9980 (was less than 10K) for very short period because i recharged mobile with that account as i am not aware that balance will go below 10K. After that transaction, sweeping has stopped.

        • Hi Rupesh, once yoru balance is more than 10000, then it should start sweep-in. You should check with your bank, if it doesnot start in next few days.

  22. respected sir,
    what is the minimum amount required for sweep in facility in hdfc bank??? how interest is calculated in this account???

    • 1) If you choose auto sweep in, I think the threshold is RS 1 lakh
      2) However, you can create FD and activate Sweep out option on that FD. There is no threshold required.

      The interest will be paid based on FD rate for that duration.

  23. but if sweep FD is not broken for say 1 year, will they give higher interest of 1 year or some smaller durations interest which would be lower

  24. Dear Sir,
    I have two queries. KIndly clear my doubts.
    (i) I am senior citizen (61 and half year old) & I opened SavingMax Account with HDFC on 21 March 2014 for 1 year or whenever I need money, to use my idle money lying with the bank say Rs 12 Lac. But now I noticed from my passbook enteries that I had been awarded interest @ 9% pa. This is a big loss to me as interest for senior citizens is 9.5%. Is it correct or I am being cheated. Please Clarify.
    (ii) My son is earning good Rs 12LPA and is a tax-payer. He has several FDs in his name and TDS is being deducted by the banks. Can he claim his deducted TDSs from Income Tax Office or let it be paid?

    • If you are senior citizen at the time of opening account /FD, you should get the FD rate applicable for senior citizen.

      You will get the rate applicable for the duration for which money in kept in FD.

  25. Sir,
    Your article was truely useful and easy one to understand. I have Savings Account in HDFC Bank. I have One lakh and fifty thousand rupees idle in it for more two years. Can you EXPLAIN me WHAT plan are there in HDFC Bank for earning more interest.

    • Just keep the minimum balance in saving account. The balance you can create an FD online and activate sweep-in on that FD.
      It will then give you more interest and similar flexibility.

  26. Hi Vivek, how you doing?
    I have a simple query with an Example:- I do have a SBI normal saving bank A/c , whereas, I do have to maintain a Minimum of Rs. 500/- on daily basis and in this A/c and in total, I do have Rs. 2,00,000/-. As per requirement of SBI saving plus account I would have to maintain a minimum of Rs 10,000/- on daily basis. So, if I opt the option of SBI saving plus account via net banking and put the limit that my minimum balance would Rs. 1,50,000 in SAVING NORMAL BANK ACCOUNT and balance above Rs. 1,50,000/- may be transferred to SBI SAVING PLUS ACCOUNT (i.e. in this example, my e-MOD will be of Rs 50,000/-)
    My questions:-
    1. After taking above said action, Will my saving bank account/saving plus account limit be increased to Rs. 1,50,000/- than Rs. 10,000/- (because I by myself put bar of Rs. 1,50,000 to be maintained in Saving normal bank Account then Rs. 10,000, or I will be covered under condition to maintain of Rs. 10,000 only irrespective of facts).
    2. If I give a cheque of Rs. 1,95,000/- to a person, than what would be consequences ?
    3. Can I reduced /increased the above said limit of Rs. 1,50,000/- to any amount, as per my requirement ?

    Many thanks in advance.
    Prakash Verma- 9990379137

    • 1. You can choose the threshold above which the money will sweep to MOD FD. The minimum threshold is Rs 25000.

      If you put bar of Rs 150000, then any amount above that will go to MOD FD. You can always change the threshold limit by giving application to the bank.

      2) If you give cheque of Rs 195000, then it will clear without any hassle. It will come out of yur saving account. In the background, any shortfall will automatically come from MOD FD.

      3) You can always reduce / increase the limit.

      I will suggest you to keep Rs 25000 as your threshold, so that you give the FD rate interest on maximum possible amount. As even if the amount will be on MOD FD, you can use it in the same way as your saving account.

    • Sweep out facility is not available in NRE Account. As normally in NRE Account, if you break FD before 1 year, no interest is paid.

  27. Hi sir,
    I have some queries, hoping that will get some knowledge on those.

    I suppose to open a smart saver account in YES bank (it is allowing to open it as a zero bal.), do i have to maintain any minimum bal. to get the facility of sweep in/out ?

    If i keep adding 5k every month, ll i get the benefit of FD interest rate ?

    • Hi Amit,

      Yes Bank Smart saver Account provides FD interest rates & Saving account flexibility. There is no need to maintain minimum balance.

      However, it is mentioned that you can withdraw upto 90% of the Fixed Deposit value through an overdraft facility and Pay interest only on the amount withdrawn and continue to earn interest on 100% of the Fixed Deposit. Please check with the relationship manager about these Overdraft interest at the time of withdrawal. Whether these charges are below or at par of FD interest. If they are below or at par, then it is OK, but if the Overdraft interest is more than FD rate, then it doesnot make sense.

  28. Hi,sir

    • Hi Ravi,

      I would suggest to visit your bank to check the process. as each bank has slightly different requirements.

  29. Hello,
    I am having FD & RD both in one branch. Also I am salried person. Am i eleigbe for 15 G form?. I am not sure my upcoming salary will cross tax exemption limit or not. It may come around 250000. SO i may not have any tax deduction but the interste on FD is 9K on mturity in same FY. Also RD intrest is 6K. Does TDS on interest includes only FD or RD+FD+Saving+ incoem from salary-head salary too.


    • From June 1 2015, TDS is also applicable on Recurring deposits (RD). SO TDS will be deducted if the Interest from FD & RD is more than Rs 10000 in a year.
      Saving bank interest is not considered.

  30. I love your post. I have confusion on HDFC Savings Max Account.

    Suppose I have 2,25,000 Rs. in my account in Savings Max Account. it will convert 1,25,000 rs to FD at thresold of 1,25,000 rs as per the HDFC website. in this scenario I understand that I have only 1,00,000 rs in my saving account and 1,25,000 rs in FD.

    Suppose I am giving cheque of 2,00,000 Rs to someone. I understand that first it will use 1,00,000 rs from my saving account and break FD to get another 1,00,000 rs and only 25000 Rs left on my FD.

    Question: Do I need to deposit 25,000 rs separately to maintain my Average Monthly Balance though there will be 25,000 already exist in the FD?

    Thanks in advance

    • As per HDFC MonyMaximer facility, if the balance in your SavingsMax Account exceeds/reaches Rs. 1,25,000, the amount in excess of Rs. 1,00,000 will be put in a fixed deposit at a minimum value of Rs. 25,000 for a one year and one day period*.

      You need to separately maintain the monthly balance. the FD balance will not count towards AMB.

    • Hi Rakesh, Most of the bid banks have good service.
      Check with yoru bank where you already have an account. Alternaively, you can go with SBI, ICICI, Kota, Axis etc

  31. Which of the below options are better –

    1.Is it better to invest 56000 Rs in 60 days Fixed deposit of 7.25 % p.a
    2.or is it better to leave the amount of 56000 Rs in Savings bank account to earn an interest of 4 % p.a

    In the above two options in which one do we get better interest please advice I do not want to invest in long term deposit as I do not want to lock up this amount as I may need it in near future but at the same time I want to earn better interest for this amount till it is unused, Please advice.Thanks

    • Hi Geet, In this case FD will be better than Saving as Interest on FD is higher.
      You may consider having sweep in facility whereby you can use the FD amount as normal saving account, but get the FD Interest. Please see the post above.

      In which bank do you hold the account.

  32. Hi vivek,
    I am interested to know if I make FD for Rs 1.5lakhs for 35years.
    ▶Is it possible to invest in FD for such a long duration?
    ▶which bank will be good enough in terms of interest payment?
    ▶what will be the maximum rate of interest I will receive if I invest for 35years In FD.
    ▶I need to ask some more question in continuation after getting the reply on above.
    kindly if you can help by answering..


  33. Hello sir,

    i want to enable auto sweep fd facility in my sbi account online of Rs 50,000

    in online sbi i have to go tab- e fixed deposit then MOD option then should i enter the amount whole Rs 50,000.

    • By this way, you can create MOD FD from your Saving account.

      However, in future it will not move the extra amount automatically into MOD. For that you need to convert the account into Savings Plus Account.

  34. Hi Vivek
    Do I hv to submit each time 15g/h when my fd renewed or new deposited or only in a year.
    My fd earns more than 10,000/-
    Tapash Biswas


    If i put 10k for one year in fd from my saving account then i break this in two month what will be the interest or what is penalty for that And also same 10 k put for three month and i break this after two month what will be interest or what kind of penalty

  36. Sir,

    suppose if i have 1 lakh in hand and deposit in sbi with sweep in facility activated , how much interest i will get per month ?


    • Hi Arjunan,
      Firstly with Sweep facility, you donot get the interest monthly. it will be accumulate till maturity or at the time of withdrawal.

      The 1 year rate for SBI is 7.25%. So for 1 lakh deposit, you will get Rs 7250 in an year or approx. Rs 605 monthly.

  37. Hi Vivek

    I have deposited 50,000 in ICICI by choosing Standard Money Multiplier deposit option in January 2015 with the tenure of 1 year. In January 2016, as it is auto renewed, it is showing, Ledger Balance amount is around 37,000 and maturity amount is 39,980.

    In spite of getting interest on 50,000, I am totally confused where is my INR10000 gone from my principle amount? Could you please explain how it is calculating?


    • Hi Sudha, Please get your full bank statment from ICICI .It may be possible that you have withdrawn some amount and thats why the balance is lower. Or it may be possible that when you put an initial deposit, only a certain portion was put in FD and rest is still in your saving account.

  38. Vivek sir head offs to u and ur kindness towards these people. … feeling so happy. …thanks a lot ….keep it going …god bless u

  39. I had MIS with post office–it matured in Dec2015. i was paid Rs.45000 as 0.5% loyalty on the deposit of 9L for 6 years. do let me know if this amount of 45000/- would be added to my income for tax purposes or not. i need to deposit the advance tax by 15.03.17. i have been paying tax on the monthly interest earned as per my tax bracket.

    • Hi Pradeep,

      PostOffice MIS Interest is taxable and should be included in your income.

      When you say you are paying tax n monthly interest ? what do you mean? advance tax etc? How much is your total income?

    • Hi Kiran, I am not sure if DCB provides such facility. please check with the customer care. Call Toll Free: 1800 209 5363

  40. Dear Sir,
    I have a sweep in sweep out activated current account with HDFC bank . I have to keep a threshold amount of 5 lac above which I have opted for sweep out facility automatically .
    The problem I have been encountering is that any amount above 5 lac is being converted in FD (Sweep out) . Whenever I issue a check say of Rs 2 Lac ,the FD is not broken (Sweep in is not working ) in fact the threshold amount is used to settle the dues .The FD created by sweep out is not being utilised for either maintaining the AQB or honouring the cheques or money transfers .
    But by this aS my Average quarterly balance is not maintained I am being charged heavily by the bank
    Kindly guide Asap .

    • Hi Shaliesh,

      How much average quarterly balance is required for your bank account ? The money kept in Sweep in FD is not countd towards average balance.
      But you mentioned that your sweep out threshold is 5 lakk, please check with your relationship office, why the amount is not coming out of Sweepin FD to maintain the RS 5 lakh balance.

  41. I want to open a joint saving bank account with sweep in sweep out facility. Kindly suggest with which bank to open the account to avail maximum benefit of interest.

  42. sir, i herewith attach a bank statement for MOD SWEEP ACCOUNT.
    Txn Date Value Date Description Debit Credit Balance
    20-Apr-16 20-Apr-16 TRANSFER CREDIT— 24,61,000.00 24,61,000.00
    23-Apr-16 23-Apr-16 CREDIT INTEREST— 24,61,000.00
    23-Apr-16 23-Apr-16 PART TERM BREAKOUT— 77,000.00 23,84,000.00
    17-May-16 17-May-16 CREDIT INTEREST— 57 23,84,057.00
    17-May-16 17-May-16 TAX DEDUCTION— 6 23,84,051.00
    17-May-16 17-May-16 PART TERM BREAKOUT- 18,051.00 23,66,000.00
    17-May-16 17-May-16 CREDIT INTEREST— 1,572.00 23,67,572.00

    17-May-16 17-May-16 TAX DEDUCTION— 158 23,67,414.00
    17-May-16 17-May-16 PART TERM BREAKOUT-PRE– 5,01,414.00 18,66,000.00
    17-May-16 17-May-16 CREDIT INTEREST— 626 18,66,626.00
    17-May-16 17-May-16 TAX DEDUCTION— 63 18,66,563.00

    17-May-16 17-May-16 PART TERM BREAKOUT-TDR– 1,99,563.00 16,67,000.00
    17-May-16 17-May-16 CREDIT INTEREST— 940 16,67,940.00
    17-May-16 17-May-16 TAX DEDUCTION— 94 16,67,846.00
    17-May-16 17-May-16 PART TERM BREAKOUT-PREM– 2,99,846.00 13,68,000.00
    18-May-16 18-May-16 CREDIT INTEREST— 323 13,68,323.00
    18-May-16 18-May-16 TAX DEDUCTION— 33 13,68,290.00

    18-May-16 18-May-16 PART TERM BREAKOUT— 99,290.00 12,69,000.00
    19-May-16 19-May-16 CREDIT INTEREST— 169 12,69,169.00
    19-May-16 19-May-16 TAX DEDUCTION— 17 12,69,152.00
    19-May-16 19-May-16 PART TERM BREAKOUT-PRE– 50,152.00 12,19,000.00
    19-May-16 19-May-16 CREDIT INTEREST— 169 12,19,169.00
    19-May-16 19-May-16 TAX DEDUCTION— 17 12,19,152.00

    19-May-16 19-May-16 PART TERM BREAK TDR– 50,152.00 11,69,000.00
    19-May-16 19-May-16 CREDIT INTEREST— 929 11,69,929.00
    19-May-16 19-May-16 TAX DEDUCTION— 93 11,69,836.00
    19-May-16 19-May-16 PART TERM BREAKOUT- OF TDR–2,75,836.00 8,94,000.00
    19-May-16 19-May-16 CREDIT INTEREST— 1,010.00 8,95,010.00

    19-May-16 19-May-16 TAX DEDUCTION— 101 8,94,909.00
    19-May-16 19-May-16 PART TERM BREAKOUT-OF TDR– 2,99,909.00 5,95,000.00
    19-May-16 19-May-16 CREDIT INTEREST— 334 5,95,334.00
    19-May-16 19-May-16 TAX DEDUCTION— 34 5,95,300.00
    19-May-16 19-May-16 PART TERM BREAKOUT-OF TDR– 99,300.00 4,96,000.00
    19-May-16 19-May-16 CREDIT INTEREST— 338 4,96,338.00
    19-May-16 19-May-16 TAX DEDUCTION— 34 4,96,304.00

    19-May-16 19-May-16 PART TERM BREAKOUT— 1,00,304.00 3,96,000.00
    19-May-16 19-May-16 CREDIT INTEREST— 165 3,96,165.00
    19-May-16 19-May-16 TAX DEDUCTION— 17 3,96,148.00
    19-May-16 19-May-16 PART TERM BREAKOUT— 49,148.00 3,47,000.00
    THE above is a bank statement for MOD-SWEEP SB Account. It appears that the interest calculation is wrong. Can i get calculation @ 7.25% per annum. to approach the bank.

  43. Hi Vivek,

    Thank you for this highly informational article.

    I used to have a regular savings account in HDFC, on my recent visit to my nearby HDFC branch, they suggested me to open a SavingsMax account, which i did. Now, i have 2 accounts on my customer ID.

    Currently my Savings Max account has about 25k Rs and my regular savings account(AQB is 10k) has 2.3lacs. I intend to transfer everything to Savings Max account with 10k left in regular savings account.

    > Should i close my regular savings account as it wont be of any use ?
    > If i transfer 2.2lacs to Savings Mac account, then the total would be 2.55 lacs, so if i’m right 1.55lacs would be put in FD automatically. I would be left with 1lac in my Savings Max account, if i were to use around 60k, will 60k be transferred to my Savings Max account from the FD ?

    • Hi,

      1) If the regular saving account is of no use, you may consider closing it.
      2) If your total is 2.55 lakhs, then 1.55 lakhs will be put in FD automatically. However, if you withdraw 60K, then the balance will show as Rs 95000 in Saving account.

      For SavingMaX account, is there any minimum AQB, because sometimes they have zero AQB.

  44. I am having a s.b.a/c in canarabank. I have requested the bank to keep min. Balance of 50000.00 and sweep in the amount in excess of 50000.00. Every month, when my pension comes, the amoun sweep in. My question is, being a senior citizen, what will be my extra benefit towards rate of interest.

  45. Dear Vivek,

    I have a sum of Rs. 120000 and I wish to open a FD with a interest rate of 9%. I have accounts in HDFC and ICICI banks. Please guide me how do I proceed.


    • Hi Sachin, What do you need to know. You can make FD in two banks. As the interest will be less than Rs 10000 in each bank, no TDS will be deducted.

      However, the interest will still be your income and you need to show that in your Income tax return & pay tax if payable.

  46. sir. mera sbi. me saving account hai mujhe apne account me. 80 lakh rupay jama karna hai . to aap mujhe bataye ki 80 lakh par kitna income TeX dena hoga !

    • Hi Pradeep, when you deposit this money in Cash, the bank will need PAN card.

      Also, you should have file the income tax return and disclose the income and pay tax on it. The highest tax rate is 30%

  47. Sir,
    I am holding FD’s that are maturing in 2017/2018/2019.

    Suppose i want to break these FD’s now and reinvest in a different FD…please may i know whether I will be losing any money?? If so, how much?

    Thanking you.

    • Hi Sarojini,

      If you break the FD before maturity, then

      1) bank may charge penalty interst (e.g. if for 1 year FD rate was 7% and 2 year was 8%. then if you break your 2 yr FD after 1 year, the bank will give you 6% (7% original rate for 1 year – 1% penalty)

      2) new FD may be at lower rate


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