A sweep in fixed deposit links a transaction account with term deposits so that money can move back to the account when a payment needs it. Some arrangements also move surplus savings into deposits automatically. The trigger balance, deposit size and withdrawal units depend on the bank's product. SBI's current Multi Option Deposit Scheme, or MODS, provides a useful official example of how the two directions work.
The figures below are from the SBI MOD product page and its Savings Plus terms, checked on 7 November 2026 at 21:50 IST. Both pages display an update date of 1 December 2025. These are product conditions, not a comparison of deposit returns or a recommendation to open an account.
| SBI MOD feature | Published condition at the check time |
|---|---|
| Auto sweep threshold | Rs 50,000. |
| Minimum savings balance after sweep | Rs 35,000. |
| Minimum term deposit created | Rs 15,000, with further multiples of Rs 5,000. |
| Reverse sweep units | Rs 5,000 and multiples. |
| Deposit term | One to five years. |
What is the difference between sweep out and sweep in?
In an automatic creation arrangement, surplus money in savings moves into a linked term deposit after the product's conditions are met. SBI calls the movement back from a term deposit a reverse sweep. It occurs when the savings balance is insufficient to honour a debit mandate. The bank withdraws part or all of the linked deposit and credits the transaction account.
The labels used in searches can obscure that distinction. A facility allowing a linked FD to fund a payment does not necessarily mean that every surplus credit will automatically create a new FD. SBI says MODS can be opened through auto sweep or on a standalone basis. The account's actual setup therefore matters as much as the generic phrase sweep in FD.
How does the SBI sweep deposit threshold work?
The threshold and the balance retained after a sweep are different figures. The current feature table identifies Rs 50,000 as the minimum threshold beyond which automatic MOD execution occurs, and Rs 35,000 as the minimum resultant savings balance. The deposit created must meet the Rs 15,000 minimum and the Rs 5,000 increment condition. Treating Rs 50,000 as the amount always left in savings would mix up those rules.
For a simplified arithmetic illustration, suppose savings holds Rs 80,000 and the sweep leaves Rs 35,000. The amount transferred is Rs 80,000 - Rs 35,000 = Rs 45,000. That amount meets the stated deposit size conditions. The transaction moves money between two forms of deposit within the arrangement; it is not new income and does not increase the combined principal.
Now suppose savings still contains Rs 35,000 and a Rs 40,000 payment must be honoured. The shortfall is Rs 5,000. A reverse sweep of one Rs 5,000 unit from the hypothetical Rs 45,000 deposit would cover it, leaving Rs 40,000 of that deposit principal. This example ignores interest, tax, other transactions and processing order so the movement itself is clear.
Why can the reverse sweep be larger than the payment gap?
The minimum withdrawal unit can make the amount withdrawn different from an exact shortfall. There is another condition near the end of a deposit: SBI says that when the outstanding term deposit balance reaches Rs 15,000, the full amount is reversed to savings irrespective of the requirement. An account holder should therefore not assume every debit breaks only the exact rupee amount needed.
Where several MOD deposits exist, the order of breaking them also matters. SBI provides a choice between First In First Out and Last In First Out. Without a mandate, Last In First Out applies, meaning the latest MOD is used first. Checking the selected order helps explain which deposit appears as partly withdrawn on the records.
What happens to interest when an FD is partly broken?
The MOD page says interest is paid quarterly and compounded by default. When a deposit is broken, the amount withdrawn is paid at the applicable rate for the period it actually ran, with the applicable penalty. The remaining amount continues at the original rate. The facility therefore makes principal accessible, but it does not promise that early withdrawal preserves the original maturity return on the broken portion.
No current deposit interest percentage is needed to understand that mechanism. For the separate mathematics, our quarterly compounding guide explains how interest accumulates. Our FD premature withdrawal guide discusses why the applicable holding period and penalty must be checked.
The bank also says tax deduction at source applies under income tax rules. A sweep facility does not convert term deposit interest into tax free income. It lists a loan or overdraft facility, but says further breaking of units is not allowed where a lien is marked on the particular account. Incomplete KYC can prevent automatic MOD execution too.
To reconcile the arrangement, follow the savings debit creating the MOD, the linked deposit record, any reverse sweep credit and the final payment debit. Our bank statement narration guide explains those basic entries. Read the current product terms when figures differ from older material: the published threshold, withdrawal unit and deposit order are the details that determine how this facility behaves.
