1. What is SBI Auto Sweep Account?

The SBI Auto Sweep facility automatically transfers excess funds from your savings account to a fixed deposit when the balance crosses a predetermined threshold, helping you earn higher interest rates while maintaining liquidity.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

• \( A \) — Future value of investment (₹)
• \( P \) — Principal amount (₹)
• \( r \) — Annual interest rate (decimal)
• \( n \) — Compounding frequency per year
• \( t \) — Time period in years

Explanation: The formula calculates how your money grows with compound interest, where interest is earned on both the principal and accumulated interest.

3. Importance of Compound Interest Calculation

Details: Understanding compound interest helps in financial planning, investment decisions, and maximizing returns from savings instruments like SBI Auto Sweep accounts.

4. Using the Calculator

Tips: Enter principal amount in ₹, annual interest rate as percentage, select compounding frequency, and time period in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the current interest rate for SBI Auto Sweep in 2025?
A: Interest rates vary based on deposit tenure and amount. Please check SBI's official website for current rates.

Q2: How often is interest compounded in SBI Auto Sweep?
A: Interest is typically compounded quarterly for fixed deposits linked to Auto Sweep accounts.

Q3: Is there a minimum balance requirement for Auto Sweep?
A: Yes, SBI requires a minimum balance in your savings account before the Auto Sweep feature becomes active.

Q4: Can I withdraw funds from Auto Sweep anytime?
A: Yes, funds are automatically swept back to your savings account when needed, though premature withdrawal may affect interest earnings.

Q5: Are there any taxes on interest earned?
A: Yes, interest earned is taxable as per your income tax slab, and TDS may be deducted if interest exceeds specified limits.