Does HDFC provide auto sweep?

Auto Sweep in is a facility in HDFC Bank where a fixed deposit will be broken if the account runs short of the minimum balance. This option is very useful option when you have issued a cheque and there is no sufficient balance in the account. It is better to keep few Fixed Deposits with this option.

What is sweep in HDFC Bank?

A sweep-in facility ensures that whenever funds in your Savings Account are running low for a purchase or transaction, the bank will transfer the deficit amount from your Fixed Deposit to your Savings Account without affecting your interest rate in your Fixed Deposit.

How can I activate sweep in HDFC?

Here is a step by step guide to activate the sweep-in facility for an HDFC Bank single account, for example.

  1. Log in to your NetBanking.
  2. Click on ‘Fixed Deposit Sweep-in’.
  3. You must pick the Savings Account number and the FD number that you want linked for the sweep-in.

How can I stop auto sweep in HDFC?

To discontinue with the sweep-in facility on a particular Fixed Deposit, please visit your nearest HDFC Bank Branch. In order to know more about this facility, please click here or visit your nearest HDFC Bank Branch or call up PhoneBanking.

Which bank is best for auto sweep facility?

Bank of Baroda is one of the leading public sector banks of India that provides the facility of Auto Sweep In and Sweep Out facility to the customers with its Super Savings Account. With this facility, customers can utilize their extra amount in their savings account into the Fixed Deposit for a period of 81 days.

Is auto sweep facility good?

It carries with it the advantage of both facilities. With an auto-sweep account, your savings account is linked to a fixed-deposit account and a monetary limit is defined. Whenever the amount in the savings account crosses that defined limit, the excess money is transferred automatically into the fixed deposit.

What is the interest rate in sweep account?

A sweep-in fixed deposit known by different names like money multiplier, 2-in-1 account, comes with a higher yield (around 6.75 per cent currently) compared to a savings account, at the same time maintains the liquidity of a savings account.

What is sweep deposit?

A sweep account is a type of bank or brokerage account that is linked to an investment account, and automatically transfers funds when the balance is above or below a preset minimum. Typically, this is used to sweep excess cash into a money market fund, where it will earn more interest than an ordinary bank account.

What is the disadvantage of sweep in account?

Disadvantages of Sweep Account The main disadvantage is the penalty charged on the premature withdrawal. As you read above, due to the penalty you may earn even less than saving bank interest. Some banks are also known to give simple interest on the Auto-sweep Fixed Deposits. On FD you earn compound interest.

Is auto sweep better than FD?

Narasimhan says, “Sweep accounts are typically useful if you have money at the end of the month left over after your expenses. That is, you have a large bank balance at the end of the month and you hardly make any withdrawals from the FD. If this is the case, then auto sweep will earn better returns.”