HDFC Bank Sweep out FD

What is HDFC Bank Sweep Out FD Facility?

HDFC Bank is a sweep-out FD, also known as the MoneyMaximizer, is an auto sweep feature that enables automated balance transfer between savings and FD accounts. This facility is provided by the banks to enable customers to earn HDFC Bank FD interest rates by using the auto sweep feature. It gives investors the benefits of liquidity when needed without disrupting their deposits. That means, by choosing this one feature, depositors get two benefits: the liquidity of a savings account and the higher returns of a fixed deposit. 

Advantages of HDFC Sweep Out FD 

HDFC Bank's Sweep-out FD facility has a number of benefits that make it desirable among customers who desire to receive a higher rate of interest on their excess funds without compromising liquidity.

• Maximizes Returns: Rather than making the idle money lie in your savings account with a low interest rate, the HDFC sweep-out facility will automatically change the excess to a fixed deposit that will earn a much higher interest rate.
• Automated and Hassle-Free: It is completely automated. There is no need to manually open a new FD or go to a branch when your balance in a savings account reaches some level. 
• Guarantees Liquidity: The sweep-out facility is paired with a so-called sweep-in feature. In case your balance in the HDFC Bank savings account falls short of the amount required to effect a transaction, the amount required is automatically re-deposited in the FD.

Eligibility Criteria For HDFC Bank Sweep Out FD 

MoneyMaximizer or sweep out facility by HDFC Bank is available on demand with the SavingsMax, Women’s Savings account, and the Kid's Advantage account.

Example of HDFC Bank Sweep Out FD 

Assume you are an HDFC Bank SavingsMax Account holder. In case your account balance is ₹1,50,000, then the sum that will be held in your SavingsMax account is ₹1,00,000. The sum that is more than the threshold, that is, ₹50,000, will automatically be booked as a Fixed Deposit. This new FD will be worth a minimum of 25,000 or more.

How to Activate HDFC Bank Sweep-out FD

1. Online Activation 

   There is no lengthy process to apply for the HDFC Bank Sweep-out facility. If you have an eligible HDFC savings account and want to activate this facility, follow the given steps - 

   • Go to the nearest HDFC Bank branch. 
   • Request the Customer Undertaking to Opt for Sweep-out Facility form 
   • Fill out the form completely
   • Fill out the form completely with PAN details
   • Sign the form and submit it to the bank for processing
   • After reviewing, the bank will activate the facility for your account

2. Offline Activation 

   • Visit a Branch: Go to your nearest HDFC Bank branch.
   • Request the Form: Ask for the MoneyMaximizer (Sweep-out) Facility form. This is the specific document required to activate the feature.
   • Fill and Submit: Complete the form with your account details and your PAN number.
   • Sign and Process: Sign the form and submit it to a bank official. They will process the request and link the MoneyMaximizer facility to your account.
   • Confirmation: Once processed, the sweep-out facility will be automatically triggered every Monday if your account balance falls short of the preset threshold.

Wrapping up

The HDFC Sweep-out FD is an automated facility that sweeps the required balance from your fixed deposit to your savings account. It works by linking a savings account with a fixed deposit and kicks in on preset conditions like low balance and cheque payment. This system offers the higher earning capability of a fixed deposit and the liquidity of a savings account, where any shortfalls can be automatically refilled back to the account to avoid failed transactions.