SBI Raises Minimum Auto-Sweep Limit in Savings Accounts to ₹50,000

As per news reports, State Bank of India (SBI) has increased the minimum threshold for its auto-sweep facility in savings accounts. Customers will now need to maintain at least ₹50,000 before surplus funds are transferred into fixed deposits. The earlier limit was ₹35,000.

About the MOD Facility

The auto-sweep facility, also called the Multi Option Deposit (MOD) scheme, automatically moves funds above the set threshold into fixed deposits. The transfer happens in multiples of ₹1,000. If the savings account balance runs short, funds are moved back from the MOD account to cover the gap.

Interest and Penalty Conditions

MOD deposits earn the interest rate applicable to term deposits, which is higher than savings account interest. Interest is compounded quarterly and paid on maturity. In case of premature withdrawal, the broken portion is paid with a small penalty, while the remaining deposit continues at the original rate.

SBI rules allow senior citizens to receive an additional interest rate benefit on MOD deposits. However, super senior citizens are not covered under this extra rate benefit.

Reverse Sweep Process

Withdrawals are carried out in units of ₹5,000, following the last-in, first-out (LIFO) method by default. Customers also have the option to select the first-in, first-out (FIFO) method. When a term deposit balance drops to ₹15,000, the entire amount is reversed and credited back to the savings account.

On maturity, the principal, along with the interest, minus any withdrawals, is automatically transferred to the customer’s linked savings account.

Read more: FSIB Recommends Ravi Ranjan as SBI’s Next Managing Director!

State Bank of India Share Price Performance

As of September 12, 2025, at 3:30 PM, State Bank of India share price closed at ₹823.20, representing a 0.055% decrease from the previous closing price. 

Conclusion 

The higher threshold means customers holding moderate balances of just over ₹35,000 will no longer benefit from automatic sweeps. Only balances above ₹50,000 will now qualify. For those with higher surpluses, the facility continues as before.

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