Earning 3% on idle cash? Sweep-in FDs may offer a smarter fix

Last Update Date: 05-10-2026

Published by Mint

Abhishek Kumar's role: Quoted

Abhishek Kumar said that in a stable rate environment sweep accounts help depositors earn reasonable interest without active management, and can suit emergency funds for those uneasy with liquid funds.

Mint explains how sweep-in fixed deposits linked to savings or current accounts can earn more on idle cash than a regular savings account. It covers how sweeps work, FIFO and LIFO methods for breaking deposits, premature withdrawal penalties, tax on interest and their use for emergency funds.

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Earning 3% on idle cash? Sweep-in FDs may offer a smarter fix

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