Current Account Just Got Smarter with Auto-Sweep to Fixed Deposits
July 25, 2025
Imagine if the money sitting idle in your current account could start earning interest without you having to lift a finger. That’s exactly what Ujjivan Small Finance Bank’s new Auto Sweep Facility for its Business Maxima Current Account enables – surplus balances in your current account are automatically transferred into a fixed deposit (FD) so your idle cash generates returns.
Typically, current accounts pay zero interest on balances. Businesses often keep large sums in their current accounts for transactions but earn nothing on that money. The Auto Sweep Facility changes that by ensuring every rupee beyond a chosen threshold is put to work, earning higher interest like an FD while still remaining accessible for your day-to-day needs.
What is the Auto Sweep Facility?
An auto-sweep facility links your current account with a fixed deposit and automatically shuttles money between them to maximize returns. When your current account balance exceeds a predefined threshold, the surplus amount is "swept out" into a fixed deposit where it earns a higher interest rate. If your account balance runs low when you need to make a payment, the required funds are "swept in" from those fixed deposits back into the current account. Think of it as having the best of both worlds: you enjoy the liquidity of a current account and the interest income of a fixed deposit, without any manual intervention.
With an auto-sweep facility, surplus funds above a set limit move into an interest-earning fixed deposit, while remaining accessible for business needs. This way, your money works harder for you without sacrificing liquidity.
How Does Auto Sweep Work?
The auto-sweep feature works through a few simple steps behind the scenes:
1. Setting a Threshold
You decide a minimum balance that should always remain in your current account (with Ujjivan, the minimum threshold you can set is ₹4 lakhs). Any balance above this threshold is considered surplus.
2. Automatic Sweep-Out
At a set interval (Ujjivan’s system checks weekly, typically every Monday), any surplus above your threshold is automatically transferred from the current account into a fixed deposit. This way, the excess money starts earning FD interest without you having to manually invest it.
3. Automatic Sweep-In
If your current account needs funds – for example, a large payment exceeds your available balance – the system will automatically break the necessary fixed deposit and transfer the exact amount needed back into your account. You never have to worry about a shortfall; the sweep-in happens seamlessly so your payments go through without a hitch.
Key Features of the Auto Sweep Facility
Benefits of Using Auto Sweep in Your Current Account
Final Thoughts
The Auto Sweep facility in a current account offers a win-win proposition for businesses: you earn extra interest on idle funds without losing any liquidity. This feature is especially valuable if you maintain high balances for operational needs – it ensures even your working capital is always working for you. Ujjivan SFB’s introduction of auto-sweep in the Maxima Current Account reflects a commitment to smarter banking solutions. If your business often holds surplus funds, the auto-sweep facility is well worth considering making the most of your money.
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