What is a Flexi Saving Account? How to Convert a Normal Savings Account into a Flexi Account and Minimum Balance Rules Explained

Saving money is the first step toward financial security. Most of us have a regular savings account to park our hard-earned money safely. But do you know there’s a smarter version of it called a Flexi Saving Account that helps you earn more interest without compromising on liquidity? Let’s understand what a Flexi Saving Account is, how you can convert your normal savings account into one, and what are the minimum balance requirements to open or maintain it.

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10/5/20252 min read

What is a Flexi Saving Account?

A Flexi Saving Account (also known as a Sweep-in Account) is a special type of savings account that combines the benefits of a savings account and a fixed deposit (FD). Every Bank provides this type of schemes on saving accounts but minimum balance criteria we have to fulfill to convert our normal saving account into flexi deposit saving account.

Here’s how it works:

  • You have a linked Fixed Deposit (FD) account connected to your savings account.

  • Whenever the balance in your savings account crosses a certain limit (say ₹25,000), the extra amount is automatically transferred (swept in) to a fixed deposit to earn higher interest.

  • When your account balance goes below the limit, the required amount is swept out (transferred back) from your FD to your savings account automatically.

In simple words, it’s a smart savings account that earns FD-like interest while keeping your money available anytime you need it.

Key Benefits of a Flexi Saving Account

  1. Higher Interest Earnings – Extra funds automatically earn FD interest instead of low savings account interest.

  2. Easy Liquidity – You can withdraw money anytime without breaking the entire FD.

  3. Automatic Transfers – No manual work; the bank automatically manages sweep-in and sweep-out.

  4. No Lock-in Period – You get FD benefits without the restrictions of a fixed deposit.

  5. Smart Money Management – Keeps your savings growing efficiently.

How to Convert Your Normal Savings Account into a Flexi Saving Account

If you already have a regular savings account, converting it into a Flexi account is quite simple. The steps may vary slightly depending on your bank, but the general process is:

  1. Visit your bank branch or log in to internet banking / mobile banking.

  2. Request for the “Flexi Deposit” or “Sweep-in” facility.

  3. The bank will ask you to set a threshold limit (Minimum Balance Criteria)(e.g., ₹25,000). Any amount above this will be automatically moved to FD.

  4. Provide your consent and complete the form (if required).

  5. Once activated, your account becomes a Flexi Saving Account, and automatic sweep operations start.

    Some banks offer this option online — check under “Deposit Services” or “Sweep-in Facility” in your bank’s app or website.

Minimum Balance Criteria for Flexi Saving Account

The minimum balance requirement for a Flexi Saving Account is usually the same as a normal savings account, but it can differ from bank to bank.

Here’s a general idea:

  • Public Sector Banks (like SBI, PNB, Bank of Baroda): ₹1,000 – ₹10,000

  • Private Banks (like HDFC, ICICI, Axis Bank): ₹10,000 – ₹25,000

  • Small Finance / Digital Banks: ₹0 – ₹5,000

The minimum amount for sweep (FD creation) usually starts from ₹10,000 or ₹25,000, depending on the bank’s policy.

Example:
If you have ₹40,000 in your account and the Minimum balance criteria is ₹25,000, then ₹15,000 will automatically move to FD. If your balance later drops below ₹25,000, the required amount will move back from FD to your savings account.

Final Thoughts

A Flexi Saving Account is perfect for people who:

  • Keep extra money in their savings account regularly

  • Want better interest without losing access to funds

  • Prefer automated, hassle-free saving

If you have idle money sitting in your regular account, switching to a Flexi Saving Account can help you earn more interest smartly.

So, contact your bank today and make your savings work harder for you!