The HDFC Sweep in FD combines the benefits of a savings bank account with the higher interest rate of a fixed deposit. With the sweep in facility, you won’t have to worry about not having enough funds in your account for a transaction. Furthermore, you won’t have to deal with the embarrassment of a failure in transactions.
What is Sweep in FD in HDFC Bank?
When you apply for the HDFC sweep-in FD facility, the bank actually breaks up units of the designated FD into Rs. 1 units. This ensures that funds are available in your sweep-in Savings or Current Accounts, depending on which is linked. This ensures that cheques or other debit transactions from your account are not hampered by a shortage of money in your Savings/Current Account. The facility is exclusively available to Indian residents, HUFs, private and public businesses, and other entities.
Some banks impose a maximum or minimum limit on the number of sweep in FD that can be opened. With HDFC Bank, FDs of amounts greater than or equal to Rs.5 Cr to less than Rs.25 Cr are not allowed for sweep-ins or sweep – outs.
Customers who want to use the sweep-in service for large ticket FDs may not be able to do so online and will be routed to the nearest bank office.
HDFC Sweep in FD Interest Rates 2023
- Sweep in Facility with Savings Account: The interest rate as per the selected Savings Account & the average account balance needs to be maintained irrespective of the fixed deposit value.
- Sweep in Facility with Current Account: The interest rate as per the selected Current Account & the account balance needs to be maintained average irrespective of the fixed deposit value.
How HDFC Sweep in FD Works?
For example, your Savings Account has a sweep-in feature that is linked to a Rs.20,000 FD.
You wrote a cheque for Rs 17,000 in your name. However, there is only Rs. 7,000 in the Savings Account. The bank will now withdraw the value of Rs.10,000 from the FD linked to your Savings Account and deposit it in your Savings Account. As a result, the cheque is accepted for a successful transaction.
Features of Sweep in FD in HDFC Bank
- Any deficit in your Savings or Current Account is taken care of – the exact value comes from your Fixed Deposit
- Deposits are broken down in units of Rs 1/-thereby minimising Interest Loss
- Sweep in of cash from your Fixed Deposit (FD) to your Savings/ Current account will begin on a Last in First Out basis as of February 22, 2014. (LIFO)
- Resident Individuals, Hindu Undivided Family HUF, Private and Public Limited companies, Societies, trust etc are eligible.
- In the case of Savings Accounts, regardless of the value of the fixed deposit, you must maintain the average balance relevant to the Savings Account you choose. The service charges will be determined by the Savings Account you choose.
- In the case of current accounts, regardless of the value of the fixed deposit, you must maintain the average balance relevant to the current account you choose. The service charges will be determined by the Current Account you choose.
- Your interest on the amount transferred is forfeited if the Fixed Deposit is held for fewer than 7 days.
- Sweep-in facility is not available for two types of transactions. Such transactions are IPO investment and investing in securities.
Benefits of HDFC Sweep in FD
FD rates that are higher
When your Savings Account with sweep-in facility is linked to the FD, you get to enjoy the high interest from the FD while still having the option of liquidity. You may acquire a better idea of the interest rate by using the FD interest calculator, which will help you make a more informed decision.
It provides the highest level of liquidity. If you have an EMI or a check due and your Savings Account has been selected to be linked with an FD for the sweep-in service and you are running low on money, the bank will simply transfer or sweep in funds into your Savings Account to save you from embarrassment and a poor credit score.
Allows for the linking of numerous deposits to a Savings Account.
You can link multiple deposits to the Savings Account for sweep-in to ensure you never run out of cash liquidity. In that instance, the bank will apply the LIFO (Last in First Out) rule, which means that when a sweep-in is triggered, funds will be transferred first from the last deposit linked to the sweep-in facility to your Savings Account.
Banks are flexible in allowing you to choose the deposit time, maturity, and payment method. There may be a self-imposed limit on the amount of money that can be kept in savings and checking accounts. There may be a minimum holding period for FDs, and if it is not met, the interest may be forfeited. Some banks, such as HDFC Bank, do not accept sweep-ins for securities or initial public offerings.
How to Apply for HDFC Sweep-in FD?
NetBanking is the most convenient way to apply for a HDFC sweep-in FD facility. For an HDFC Bank single account, for example, below is a step-by-step explanation on how to enable the sweep-in function.
- Log in to your NetBanking.
- Click on ‘Fixed Deposit Sweep-in’. You can find it under the Fixed Deposit tab.
- You must pick the Savings Account number and the FD number that you want linked for the sweep-in.
- Click on ‘continue’ and ‘confirm’ to have the facility activated.
What is a Sweep-Out Facility?
The Sweep-Out Facility, also known as the Money Maximizer, is a great method to transform your excess savings into a secure Fixed Deposit with greater interest rates. You may earn higher interest while maintaining the flexibility of a Savings Account with the Sweep-Out Facility. This implies that if you pick the Sweep-Out Facility, you will be able to earn interest on your excess funds while also having the option to withdraw them whenever you want. The Sweep-Out Facility is developed for the convenience of the customer, assisting them in managing their money in a way that maximizes their earnings. Sweep-Out is offered with a variety of HDFC Bank Savings Accounts and their associated characteristics.
Benefits of a Sweep-Out Facility
Maximize Your Earnings
Your money is sitting in your Savings Account, earning only a small amount of interest. If you are the type of person who saves money rather than spending it on the spur of the moment, leaving money with a low interest rate is a waste of money. You can create a Fixed Deposit that is linked to your Savings Account using the Sweep-Out Facility. By making use of this facility, you will be able to make more money at greater interest rates, enhancing your earning potential. When compared to the interest on a savings account, you can earn more.
Automated Fixed Deposit Booking
If you are a busy individual, opening a Fixed Deposit can be a hassle. To open a Fixed Deposit, you’ll either have to go online and fill out a lot of information, or you’ll have to go to your bank’s local location. MoneyMaximizer takes care of this for you. Fixed Deposit booking can be automated with the Sweep-Out Facility. It has established thresholds, so you won’t have to call or even go to your local branch to open a Fixed Deposit account.
Using the Sweep-Out Facility is as simple as creating a Savings Account and then letting HDFC Bank handle the rest. You may sit back and relax while earning high interest on your Savings Account with its amazing perks of easy Fixed Deposit booking and greater interest.