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.
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.
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!
FAQS: (HDFC Site)
What is the Sweep-In facility?
The Sweep-In facility is a cluster deposit (held in units of Re.1) with a cheque book and ATM / Debit card . If funds in your Sweep-In Savings/Current Account are insufficient to clear a cheque, term deposits (Principal Amount) held by you with sweep-in marked, are automatically broken into units. Same is the case when you withdraw money using your ATM Card with insufficient funds in your account
What are the benefits of the Sweep-In facility?
The Sweep-In facility gives you the high interest rates of a Fixed Deposit and the liquidity of a Savings Account.
You only need to have a Savings Account or a Current Account with us. The Sweep-In facility will link the deposits you choose to the Savings/Current Account. Whenever there are insufficient funds in the Savings Account to clear a cheque, we will break units of the deposit (to the next Rupee) to clear the cheque. On these deposits, you will earn a rate of interest for the period that the deposit has remained with the Bank and that was applicable at the time when the original deposit was placed. Your remaining deposits continue to earn the original high rate of interest.
How will the Sweep-In work?
Here's an example to illustrate how the Sweep-In Account works:
A has Sweep-In facility on his Savings Account with a linked Fixed Deposit of Rs. 10,000/-.
Assuming on a particular day, the balance in his Savings Account is Rs. 1000/-. And he issues a cheque for Rs. 4000/- on this account and it has now come to the bank for clearing:
HDFC Bank will mark a lien on the Fixed Deposit to the extent of Rs. 3000/- (4000/- less 1000/-) and clear the cheque. However, these units will only be prematurely encashed at the end of the day, if the customer has not deposited any funds in his Savings Account, during the course of the day.
Can I have a Sweep-In facility with multiple deposits?
Yes, you can link more than one deposit to the Sweep-In Savings Account. In this case, the system will first Sweep-In funds from the oldest deposit opened, i.e., the deposit which was first linked to the Savings Account. When you link more than one deposit to the facility, then the first deposit to be encashed will be the deposit which was opened first.
Can I have both a Super Saver facility and a Sweep-In facility on the same Fixed Deposit?
No. You can only have one of the two facilities on a single Fixed Deposit.
Can a customer have both a Super Saver facility and a Sweep-In facility on the same Savings Account?
Yes, you can have both these facilities on the same Savings Account. Although do realise that when there are insufficient funds in your Savings Account, your overdraft limit will be exhausted before units of the Sweep-In Fixed Deposits are encashed prematurely.
Can I link accounts held in different account titles to the same Savings Account for the Sweep-In facility?
No. You can only link the Sweep-In facility to the accounts with the same account title. For example, a Fixed Deposit held by A-B can be linked to a Savings Account held by A-B across branches
Can a Fixed Deposit be linked to two different Savings Account for the Sweep-In?
No. A single Fixed Deposit can only be linked to one savings account for the Sweep-In facility.
Are both principal and interest amount of the FD considered for the Sweep-In facility?
No, only the principal amount of the FD is considered for the Sweep-In facility
Explained in another words:
Super Saver accounts are like opening the Savings Bank and Fixed Deposit account together. Many people know that when you are opening Fixed Deposit with tenure of 5 years, it is not good to pre-close the whole account for the urgent need of money which may be lesser than the Fixed Deposit account. For that purpose Super Saver Facility helps you to liquidate the money when you need with 2% higher interest rates. The following are the key points concerning Super Saver Facility:
It is an over draft facility for the Fixed Deposit
Sweep-In facility also help you to utilize the Fixed Deposit, but without taking the overdraft on your fixed deposit account. The following are the key points regarding the Sweep-In facility: