Why FD Sweep-in?
Earning higher returns never hurts anyone and that is exactly the point of enabling a sweep-in facility. The amount getting transferred to the linked fixed deposit account will earn higher interest as the FD interest rates are higher than savings account interest rates.
Also, availing a sweep-in facility does not hamper the liquidity of the account holder because the limit is set by the account holder only. Therefore, they can set it as per their affordability. If someone needs Rs. 20,000 for monthly expenses, they can set the limit at Rs. 20,000 or Rs. 25,000 and the remaining amount will slide into the linked fixed deposit account. No extra effort is needed from the account holder’s side.