SBI Auto Sweep Limit: The State Bank of India (SBI) has made a major update for its customers.
The bank has increased the minimum balance required for its auto sweep facility. This limit has been raised from ₹35,000 to ₹50,000.
This means that now, when the balance in your savings account goes over ₹50,000, the extra amount will automatically be converted into a fixed deposit (MOD), earning you higher interest.What Is SBI’s MOD Scheme?
MOD or Multi Option Deposit is a special savings scheme. Under this, the bank shifts extra money from your savings account into a fixed deposit automatically. This earns you more interest than a regular savings account.
If your savings account needs money, the bank automatically pulls it back from the MOD — this is known as a reverse sweep. This transfer can be done partially or fully.
What Does the New Limit Mean?
Previously, any balance above ₹35,000 was transferred to MOD. Now, only balances above ₹50,000 will be converted.
So, the MOD process will only start when your account has ₹50,000 or more.
Interest and Withdrawal Terms:
The interest on MOD is higher than on savings accounts.
Interest is compounded quarterly and also paid quarterly.
If you break the MOD (withdraw early), you’ll get interest only for that time period, and a small penalty may apply.
Interest continues as usual for the remaining balance.
TDS (Tax Deducted at Source) is applied on the interest earned.
Extra Benefits for Senior Citizens:
SBI gives higher interest rates on MODs to senior citizens.
However, super senior citizens (above 80 years) do not get any additional benefit.
How Does Reverse Sweep Work?
Reverse sweep happens in multiples of ₹5,000.
If your MOD balance drops to ₹15,000, the entire amount is moved back to your savings account.
The bank follows the LIFO rule (Last In, First Out), meaning the most recent MOD is used first.
Customers can also opt for FIFO (First In, First Out) if they prefer.
What Happens on Maturity?
When the MOD matures, the full amount along with interest is automatically credited to your savings account.
Why Is the MOD Scheme Useful?
Helps you earn more interest from idle savings.
Money is available instantly when needed.
No need to manually create fixed deposits.
