Auto Sweep Facility in HDFC Bank
Auto Sweep facility is the inter-linking between two accounts, one is the savings account or current account and the other a fixed deposit account. The main aim of this facility is to maintain a threshold limit, such that any amount that is above this value gets a higher interest as per the fixed deposit scheme. Thus linking up of the two accounts leads to better return on the deposits in the bank.
Sweep In Facility in HDFC BankThe Auto Sweep Facility is known by different names in different banks. In case of the HDFC bank, this Auto Sweep facility is known as Sweep In facility. In this scheme, the bank allows its customers to link either a Savings Account or Current Account to the Fixed Deposit Account. In case of an emergency, the customer can use his balance. In case there is deficit in the Savings Account or Current Account, the deficit is filled from the balance in Fixed Deposit account. This is done in units of Re.1/-, hence interest will be lost only for the actual amount that is withdrawn.
Features of Sweep in HDFC Bank
Unlike some banks that allow only the Savings account to be linked to the Fixed Deposit account, this bank provides an option to the customers. It allows the customers to link either the Savings account or the Current account. Till, the sweep in is done, the customers earn high interest while the Fixed Deposit continues to earn for the customers. Customers are not required to swipe out amount in denominations of a particular amount. They can swipe out the amount that they require. An advantage indeed! Interest loss is minimised as only the deficit is filled up in multiples of Re. 1/-. For sweep in purposes only the principal amount is considered. Another important feature is that multiple deposits can be linked to the Savings account. There is flexibility in almost anything. The customer can alter the period of deposit, maturity and payment instructions and also the principal amount. Along with the sweep in facility, the customer also gets to enjoy the Super Saver facility only if the Savings account has been linked. For senior citizens, a higher rate of interest is available.
Eligibility and Charges of Sweep in HDFC bank
All NRI account holders can avail of this facility. This facility is available only under NRO/NRE term deposits. This is not available under FCNR term deposits.
If Fixed Deposit balance is maintained at Rs. 50,000/- and above then no service charges are levied on the Savings account. However, if the Fixed Deposit is maintained below Rs. 50,000 then service charges will be applicable in Savings account.
The benefits the customer gets to enjoy include the option of choosing his Current account or Savings account. Then, the customers get to continue earning interest on the balance after the sweep in is done. Additionally, a customer can use the Sweep in scheme with the Super Saver pack. For enjoying higher interest with better benefits, HDFC is the way!