New Delhi, May 6 -- A savings bank account is the default parking spot for emergency funds. It is liquid, familiar and easy to access.

But large idle balances kept "for safety" often earn just 2-4% interest - not enough to beat inflation. Over time, that quietly erodes purchasing power.

To address this, banks offer sweep-in facilities, also known as auto-sweep or sweep FDs. Many financial advisors recommend parking part of an emergency corpus here to earn better returns without compromising liquidity.

A sweep-in (or sweep-out) feature links your savings or current account to a fixed deposit (FD).

When your account balance crosses a preset limit, excess funds are automatically swept into an FD. If your balance falls below a threshold, ...