What is HDFC Bank sweep-in facility and how is it beneficial?

There might be situations in your life when you may not have sufficient funds in your Savings Account to pay for emergencies or any essential bills. If you have limited finances and have to pay for an expense immediately, it could put you in a tight spot. If a situation like this arises, what can you do? Well, one way is by paying through your Fixed Deposit. With HDFC Bank Sweep-In facility, it is not only possible but also convenient.

What is Sweep-In Facility?

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. This can help you in a pinch when there is an emergency like sudden hospital bills, buying a vehicle or any other personal emergency.

In the sweep-in facility, deposits are broken in units of Rs.1, minimizing your interest lost. The sweep-in facility is available for:

  • Resident individuals

  • Societies and trusts

  • Private and public limited companies

  • Hindu undivided families

The sweep-in facility is available with a Savings Account and a Current Account. In either case, the average balance applicable to the Savings Account or current account needs to be maintained irrespective of the Fixed Deposit value.

The sweep-in facility provides the same liquidity as a savings or current account, benefiting from the high-interest rate of a Fixed Deposit. It gives you the ability to pay for emergencies without having to liquidate your Fixed Deposit.

Which HDFC Bank Saving Accounts offer the sweep-in facility? 

The sweep-in facility is available on-demand with

  1. SavingsMax account

  2. Women’s saving account

  3. Kids advantage account

SavingsMax account: Savings max account gives you total insurance cover up to Rs.3.29 crore and gives you higher interest rates with MoneyMaximizer. If the balance in a SavingsMax account exceeds or reaches Rs.1,25,000, the amount above Rs. 1,00,000 will be swept out into a Fixed Deposit.

Women’s Savings Account: The women’s Savings Account is designed for women. With it, women can enjoy benefits like preferential pricing for loans and other products. It also offers cashback on shopping and even free insurance cover. If the balance in Women’s Savings Account exceeds or reaches Rs.1,00,000, the amount above Rs. 75,000 will be swept out into a Fixed Deposit.

Kid’s advantage account: This account offers a debit/ATM card for kids. This can help you teach your children about money management. In the event of the balance in Kid’s Advantage account exceeding or reaching Rs. 35,000, the amount above Rs. 25,000 will be swept out into a Fixed Deposit.

Now that you are familiar with how HDFC Bank’s sweep-in facility works and which accounts it is available for, you are ready to open an HDFC Bank Savings Account.

To learn more about the benefits of MoneyMaximizer facility, click here.

Looking to open a Savings Account with HDFC Bank? Click here to get started.

*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.