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HDFC Sweep in FD

HDFC Sweep in FD 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

With HDFC Bank's Sweep-in Facility, you can earn the same interest rate as a Fixed Deposit on your Savings Account. Savings accounts have more liquidity because they can be withdrawn at any moment, but Fixed Deposits can not.

You can choose which deposits you wish connected to your HDFC Current or Savings account, and if funds in your account are ever inadequate to execute a transaction, HDFC will split the deposit units to honor the transaction.

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.

Components of the Sweep In FD HDFC

Mentioned below are the major attributes of the HDFC Sweep:

1) HDFC Bank Sweep in FD Tenure: 

This service can be opted for at any time by the customer, and it can also be opted out of by contacting the branch.

2) Types of Accounts in the Scheme:

There can be two types of accounts in this scheme, and they are:

Current Account and Savings Account.

3) Investment Amount of the Scheme:

Fixed deposits worth more than Rs.1 crore are not eligible for this program.

4) HDFC Sweep in Interest Rates:

HDFC Sweep in FD Interest Rates for Savings Accounts- Service fees will be determined by the Savings Account selected. Regardless of the Fixed Deposit's value, the average account balance must be maintained.

HDFC Sweep Account Interest Rate for Current Account - Service fees will be determined by the current account selected. Regardless of the Fixed Deposit's value, the average account balance must be maintained.

How to Apply for the 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.'

Access to fixed deposits
of various banks
Invest without opening
a new bank account
Avail high interest rates
of up to 6.5%
OPEN FD ONLINE

Eligibility Criteria for the HDFC FD Sweep-in

The HDFC Bank Sweep-in Facility is provided for the following purposes:

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

Benefits of the HDFC Sweep in FD

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.

Comparison of FD rates

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Tenure
Highest Interest Rates
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FAQs

Q1. What exactly is the sweep-in facility, and how does it operate?

The facility is a cluster deposit where units of Re.1 are held. The facility automatically breaks term deposit units in order to honor transactions and offer rapid liquidity as needed.

Q2. Is it possible to link several deposits to the Sweep-in?

Yes, several deposits can be linked; however, the most recently added deposit will be used first.

Q3. What are the benefits of using the Sweep-in Facility

This plan is ideal for small business owners and people looking for a better liquidity solution than an overdraft on their FD, as it:

  • There is no requirement that a minimum quantity is withdrawn; nevertheless, a particular amount can be taken.
  • There are no additional fees and charges - such as those associated with an overdraft.
    Transactions will always be honored as long as the FD units have sufficient funds to be broken down and paid off.
  • Excess money swept into the account generates nearly twice as much interest as normal savings accounts while maintaining the same liquidity.

Q4. What is the process of applying for the Sweep-in facility?

To use the Sweep-in feature, follow these steps:

  • Use your HDFC Bank Net Banking account to log in.
  • Select "Fixed Deposit Sweep-in" from the "Fixed Deposits" menu.
  • Choose the Savings Account number and also the FD account number to be linked to the Sweep-in function from the drop-down menu.
  • Read the terms and conditions and agree to them.
  • "Continue" should be selected.
  • Select "confirm" from the drop-down menu.

Q5. What causes the Sweep-in facility to be activated?

The HDFC Bank Sweep-in service operates on a Last In-First Out basis (LIFO). 

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