HDFC Sweep in FD

The sweep in FD by HDFC combines the advantages of a savings bank account with a fixed deposit's higher return rate. You would not have to worry about not having enough funds in your account for a transaction if you use the sweep-in feature.

HDFC Sweep In FD Meaning

HDFC Sweep-in Facility is a feature that allows an investor to automatically transfer funds from their FD to their savings account when the balance falls below a certain limit. This helps to avoid bounced checks and other penalties for insufficient funds. With this Sweep-in FD facility, one can earn the same interest rate as a fixed deposit on your savings account. 

The Sweep-in Facility is a cluster deposit where each unit of Re.1 is held. The bank will automatically break term deposits in order to complete transactions for which there are insufficient funds in your account. It also breaks down deposits so that you can get cash at ATMs right away if you run out of money.

Features of Sweep-in FD of HDFC 

The Sweep-in FD facility of HDFC Bank has the following features:

• Flexibility: One can choose the fixed deposits which they want to link to the Sweep-in FD facility. One can also set a minimum balance for their savings account.
• Assured Liquidity: The sweep-in FD of HDFC ensures that you have immediate access to your funds, even if they are locked in a fixed deposit.
• High Interest Rate: You continue to earn the same high interest rate on your Fixed Deposit, even when funds are transferred to your savings account.
• Auto Sweep-in: The HDFC FD Sweep-in is automatic, so one does not have to worry about manually transferring funds.

How to Apply for HDFC Sweep In FD?

The most simple way to apply for an HDFC sweep-in FD is through NetBanking. Below is a step-by-step guide for enabling the sweep-in function on an HDFC Bank single account, for example.

Step 1: Sign in to your NetBanking account.

Step 2: Select 'Fixed Deposit Sweep-in' from the drop-down menu. Under the Fixed Deposit tab, you'll discover it.

Step 3: For the sweep-in, you must choose the Savings Account number and the FD number that you want to be linked to.

Step 4: To activate the facility, click 'proceed' and 'confirm.'

Fees for HDFC Bank Sweep In FD Facility 

HDFC Bank does not levy any fees or charges for the sweep-in facility. However, there are a few things that must be kept in mind before opting for the sweep-in FD:

• One must maintain the minimum balance requirement of their savings account, irrespective of the value of the fixed deposit.
• One will lose the interest on the transferred amount if they break the FD before 7 days.

Eligibility Criteria for Sweep-in FD by HDFC

The HDFC Bank Sweep-in Facility is eligible for the following categories:

• Indian residents.
• Families Undivided in Hinduism (HUFs).
• Trusts and societies.
• Limited Liability Companies (LLCs) are divided into two types: private and public.

Benefits of HDFC Sweep in FD Facility

These are some of the most major advantages of investing in this type of FD:

• When your Savings Account with a sweep-in facility is linked to your FD, you can benefit from the FD's high-interest rate while still having access to liquidity. Using the FD interest calculator, you can get a better sense of the interest rate, which will assist you in making more informed decisions.
• It offers the greatest amount of liquidity. If you have an EMI or a check due, and your Savings Account is linked to an FD for the sweep-in service, and you run out of money, the bank will simply move or sweep funds into your Savings Account to save you from embarrassment and a poor credit score.
• To make sure you would never run out of cash liquidity, you can link several deposits to the Savings Account for sweep-in. When a sweep-in is activated, the bank will use the LIFO (Last in First Out) rule, which indicates that funds will be transferred first from the sweep-in facility's last deposit to your Savings Account.
• Banks are accommodating in terms of deposit time, maturity, and payment manners. It's possible that you've set a limit on how much money you can keep in savings and checking accounts. For FDs, there could be a minimum holding period, and if it is not met, the interest could be forfeited. Sweep-ins for securities or initial public offerings are not accepted by some institutions, such as HDFC Bank.