Auto Sweep In HDFC
Auto Sweep is a banking facility offered by HDFC Bank in India that helps customers optimize their savings by automatically transferring excess funds from their savings account to a fixed deposit account, thus earning higher interest rates on the surplus money.
Threshold Amount
When you open an Auto Sweep account, you set a certain minimum balance, known as the threshold amount. This is the minimum balance that you want to maintain in your savings account.
Fixed Deposit Link
Along with your savings account, HDFC Bank also opens a linked fixed deposit account. This fixed deposit account is created with the surplus amount that exceeds the threshold you’ve set in your savings account.
Automatic Transfers
Whenever your savings account balance goes above the threshold amount, the surplus funds are automatically transferred to the linked fixed deposit account. This is typically done in multiples of a pre-defined amount.
Interest Earnings
The money in the fixed deposit account earns a higher interest rate than a regular savings account. Fixed deposits usually have a fixed tenure, and the interest rates are generally higher than what you’d earn in a regular savings account.
Liquidity
In case you need the money from the fixed deposit, you can access it. However, there might be some penalties or restrictions depending on the terms of the fixed deposit.
Sweep-In and Sweep-Out
The process of transferring funds from the savings account to the fixed deposit account is known as a “sweep-in.” When you need funds from the fixed deposit back into your savings account, it’s referred to as a “sweep-out.”
How To Turn On Auto Sweep In HDFC
Login to HDFC NetBanking
Visit the official HDFC NetBanking website and log in using your customer ID and password.
Navigate to Fixed Deposit Section
Once you are logged in, navigate to the “Fixed Deposit” or “Deposits” section of your NetBanking account. The exact location of this section might vary based on the NetBanking interface updates.
Set Up Auto Sweep
Within the Fixed Deposit section, look for an option related to the Auto Sweep facility. This option might be labeled differently, such as “Auto Sweep,” “Sweep-in Facility,” or “Smart Deposit.” Click on this option.
Configure Parameters
You will likely be prompted to configure the parameters of the Auto Sweep facility. This includes setting the minimum balance in your savings account, the threshold amount for the sweep to occur, and the tenure of the fixed deposit created. You may also have the option to choose the type of fixed deposit.
Confirm and Activate
After setting the parameters, review the details to ensure they are correct. If everything looks good, confirm the setup. The system will then activate the Auto Sweep facility according to the parameters you’ve specified.
