• HDFC Bank Sweep-in Facility

    HDFC Bank's Sweep-in Facility enables you to earn an interest rate that's as high as a Fixed Deposit - in your Savings Account. Savings Accounts have higher liquidity, in that they can be withdrawn from at any time, but Fixed Deposits don't have the benefit of such high liquidity.

    You can choose which deposits you want linked to your HDFC Current or Savings account, and if there are ever insufficient funds in your account to complete a transaction - HDFC will break the units of the deposit to honour the transaction. No more cheque bounces with this incredibly useful facility.

    The Sweep-in Facility works as a cluster deposit that's held in units of Re.1 each. Term deposits will automatically be broken by the bank in order to fulfil transactions for which there are not enough funds in your account. It also breaks deposits to make cash instantly available to you at ATMs when you're in need of more funds than are present in your account.

    For example:

    Let's say you've given a cheque to a credit for Rs.7,000, and have only Rs.5,000 in the bank. You have no time to go deposit cash in your account, and the cheque will be cashed immediately by the creditor.

    Sweep-in facility opted for with a Fixed Deposit worth Rs.10,000

    Savings account balance: Rs.5,000.

    Cheque issued for: Rs.7,000.

    HDFC Bank will break the Fixed Deposit up to Rs.2,000 (Rs.7,000 - Rs.5,000) and clear the cheque - preventing a cheque bounce and an uncomfortable situation.

    Eligibility Criteria for applying for HDFC Bank Sweep-in Facility

    The HDFC Bank Sweep-in Facility is available for:

    • Resident Indian Individuals.
    • Hindu Undivided Families.
    • Societies, trusts.
    • Private and Public Limited Companies.

    Features of HDFC Bank Sweep-in Facility

    Account Type

    Current account.

    Savings account.

    Amount This facility is not available for fixed deposits whose value is greater than Rs.1 crore.
    Rate of Interest

    Sweep-in Facility with Savings Account:

    Service charges will be as per those of the selected Savings Account. Average account balance needs to be maintained irrespective of the value of the Fixed Deposit.

    Sweep-in Facility with Current Account:

    Service charges will be as per those of the selected Current Account. Average account balance needs to be maintained irrespective of the value of the Fixed Deposit.

    Period This facility can be opted for whenever the customer wishes, and can be opted out of by simply contacting the branch.

    HDFC Bank Sweep-in Facility FAQs

    1. What is the sweep-in facility and how does it work?
    2. The facility is a cluster deposit that's held in units of Re.1. Units of term deposits are automatically broken by the facility in order to honour transactions and provide instant liquidity as and when required.

    3. What is the advantage of the Sweep-in Facility?
    4. Small business owners and those seeking a better liquidity option than an overdraft on their FD can really benefit from this plan, as:

      • There is no minimum amount that has to be withdrawn - a specific amount can be taken.
      • No additional fees and charges like those in an overdraft.
      • Excess money swept into the account earns interest at almost double the rate of regular savings accounts - and offers the same liquidity.
      • Transactions will always be honoured, provided there are enough funds in the FD units to be broken down and paid off.
    5. On what basis is the Sweep-in facility triggered?
    6. The Sweep-in facility from HDFC Bank is triggered on a Last In-First Out basis (LIFO). This is effective from the 22nd of February, 2014.

    7. How can one apply for the Sweep-in facility?
    8. Follow these steps to activate the Sweep-in facility:

      1. Log into HDFC Bank Net Banking account.
      2. Select the option "Fixed Deposit Sweep-in" under "Fixed Deposits".
      3. Click on the drop-down menu and select the Savings Account number, and the FD account number that is to be linked to the Sweep-in facility.
      4. Read through, and accept the terms and conditions.
      5. Click on "continue".
      6. Click on "confirm".
    9. Can multiple deposits be linked to the Sweep-in?
    10. Yes, more than one deposit can be linked, but it is to be noted that the last added deposit will be used first.

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