HDFC Bank Sweep in FD

What is HDFC Bank Sweep-in FD?

HDFC Bank Sweep in FD facility provides the liquidity of an HDFC savings account with the higher returns of fixed deposits. Any balance above the preset limit is automatically moved into a fixed deposit to earn returns based on prevailing interest rates. Sweep-in FDs in HDFC Bank are available with flexible tenures of 1 year or more, depending on customer choice. However, in HDFC Bank, FDs of amounts greater than or equal to ₹5 crore and less than ₹25 crore are not allowed for sweep-ins.

Key Features of HDFC Bank Sweep in FD

HDFC Bank Sweep in FD is designed to maximise earnings on funds while ensuring liquidity:

• Multiple Deposits Linked: You can link several FDs to your HDFC savings account for sweep in. HDFC Bank follows the LIFO (Last-In-First-Out) rule when funds are needed, withdrawing first from the most recently created deposit.
• Auto-Renewal Option: HDFC Bank Sweep in FDs can be set for automatic renewal at maturity, or you can select a different tenure per your preference.
• Liquidity: If your savings account balance falls short, HDFC Bank sweeps funds from your linked FD to cover payments like EMIs or cheques, ensuring smooth transactions and protecting your credit score.
• Higher Returns: Earn attractive HDFC Bank FD interest rates while keeping funds liquid. You can also use the HDFC Bank FD calculator to estimate returns before investing.

How to Activate the HDFC Bank Sweep-in FD

HDFC Bank provides online and offline options for activating the Sweep in FD HDFC Bank.

1. Online Application

   You can easily activate the Sweep in FD HDFC Bank through Net Banking or the HDFC Bank Mobile Banking App by following these steps:

   • Login: Access your HDFC Bank Net Banking or HDFC Mobile Banking app with valid credentials.
   • Eligibility Check: Ensure you have an active HDFC Bank savings account.
   • Navigate to Deposits: Locate your dashboard's ‘Fixed Deposit’ or ‘Deposits’ section.
   • Select Sweep in FD: Choose the Sweep in FD facility option.
   • Set Threshold: Enter your HDFC savings account details and define the sweep in threshold limit.
   • Review & Confirm: Verify all details carefully and confirm activation.

2. Offline Application

   If you prefer branch banking, you can activate the Sweep in FD facility by visiting your nearest HDFC Bank branch and completing the following steps:

   • Visit the Branch: Go to your nearest HDFC Bank branch.
   • Request Form: Ask for the Sweep in FD application form or the Auto Sweep Facility in HDFC Bank.
   • Fill Details: Provide your savings account number, FD details, and preferred sweep in threshold.
   • Attach Documents: Submit the completed form with valid ID proof (PAN, Aadhaar, passport, or voter ID).
   • Submit Application: Hand over the form and documents to the bank representative.
   • Activation: The bank verifies and activates the Sweep in FD facility.

Key Takeaways

The HDFC Bank Sweep in FD is a smart financial tool that helps you optimise savings while maintaining liquidity. Surplus funds automatically sweep into fixed deposits in units of ₹1, ensuring that every rupee is efficiently utilised to earn higher returns than a savings account at prevailing FD interest rates. If the fixed deposit is held for less than 7 days, no interest is paid on the transferred amount. Therefore, this facility best suits depositors who invest their funds for at least a week or more.