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Auto Sweep Account – Enable it in your Saving Bank Account

by Manish Chauhan · 445 comments

Do you have a Bank Account? Off-course you do! How much money do you have in your account? 5,000? 20,000? or a few lacs? If you have a lot of cash, lying idle in your Bank Account, and at the same time you don’t want to commit to long-term investment, you need to enable the Auto-Sweep facility in your Savings Bank account. This will make sure you earn good interest on a major part on the cash lying in your Savings account.

Auto Sweep Bank account

What is Auto-Sweep Account ?

“Auto Sweep” is a facility which provides, the combined benefits of a Savings Bank account and Fixed Deposits. Auto-Sweep facility interlinks your saving bank account with a Deposit account and makes sure any extra amount lying in your bank account above a threshold limit is automatically transferred to Fixed deposits and you earn better interest on your money.

How ‘Auto Sweep’ works?

This is how Auto-Sweep works. You define a “threshold limit”, and money up to that limit will be in the form of cash in your savings account and any amount above this, “limit” will automatically be converted into a Fixed Deposit and you will start earning normal FD returns on that part of the money. At any point in time, if you need money more than is lying in your bank account, the money lying in the Fixed Deposits is Reversed-sweeped into your savings account and you can withdraw the amount you wish.

Example

Ajay opens a new Savings Bank account with SBI. He enables Auto-Sweep facility on his savings bank account and defines the threshold limit of Rs 30,000 . Now suppose he has Rs 10,000 lying in the bank, He will be earning normal 3-3.5% interest on this money. After that if he deposits Rs 60,000 in his account, his total balance would be 70,000. But as this is above his “threshold limit”, the extra amount of 40,000 will be converted into a fixed deposit automatically and start earning returns equal to normal Fixed deposits with SBI (for example 8%). This way he always has 30,000 in his account for his daily requirements, and he has 40,000 converted into Fixed deposits which again is available to him incase he requires it.

Now suppose he has to withdraw 10,000 from his account, he will actually withdraw it from the cash lying in saving bank , and his balance will reduce to 20,000. However on the other hand if he wants to withdraw Rs 50,000 . then in that case, as his account balance will be just 30,000, an additional Rs 20,000 will be auto-reversed from his Fixed Deposit and he can withdraw total 50,000 .

Opportunity cost

A lot of us don’t bother about how much idle money is lying in our account and for how long. This happens because we think “I might need it soon, so lets not commit to any investment.” But then, the money keeps lying in the bank for months and months and sometimes even years.

Suppose your account has Rs 1 lac for 1 year, it will earn 3.5% interest on it, which is Rs 3,500 for a year. However if you have auto-sweep enabled in your savings account with threshold limit of Rs 20,000, the additional 80,000 will actually be in form of a fixed deposit and it will earn an interest of 8% (assumption). In this, you will earn 3.5% of 20,000 which turns out to be Rs 700 and 8% of 80,000 which is Rs 6,400 , a total of 7,100 , which is almost 100% more than the first case .

A lot of people have much more than 1 lac in their accounts, not just 1 lac. You can earn some extra returns if you just enable auto-sweep on your saving account . So find out if your bank provides the facility, just do it, and get it right away!

Also note that different banks have different names for this facility. For eg., ICICI Bank calls it ”Auto Sweep” , HDFC Bank calls it “Sweep-In” account , and SBI calls it “Saving Plus.” . Here is a list of other banks and the name by which they call this Auto-Sweep facility (thanks for Gopal Gidwani for the info)

  • IDBI Bank – Sweep-in Savings Account
  • Axis Bank – Encash 24
  • Union Bank – Union Flexi Deposit
  • HDFC Bank – Super Saver Facility
  • Bank of India – BOI Savings Plus Scheme
  • Oriental Bank of Commerce – Flexi Fixed Deposit Scheme
  • State Bank of India – Multi Option Deposit Scheme
  • Allahabad Bank – Flexi-fix Deposit
  • Bank of Maharashtra – Mixie Deposit Scheme
  • Corporation Bank – Money Flex
  • United Bank of India – United Bonanza Savings Scheme

Disadvantages of Auto-Sweep Account

Auto-Sweep has some disadvantages too. In general the interest rates of normal fixed deposit and FDs under Auto-Sweep are same, but some banks charge a penalty if the FD under auto-sweep accounts are broken before some duration like 1 yr and 1 day . But I think that’s fine.  If not 8% , you will at least get 7%, still better than 3.5% .

Some banks are also known to give simple interest on the Auto-sweep Fixed Deposits and not compound interest as in case of normal fixed deposits .

Don’t over do it

While Auto-sweep is a wonderful thing for salaried class people who want to maintain liquidity, as well as want to earn more interest on their unused money, one should not over do it. If you are very sure that the money lying in your account will really not be used for long, better to use the normal Fixed deposit or Debt funds. Only if you are unsure of your money lying in bank and when you might need it, you should be using Auto-Sweep facility.

The way auto-sweep works, it makes it an ideal place to park emergency funds . So if you have kept 6 months of expenses as your emergency fund in Saving Bank, then you can enable auto-sweep facility and set threshold limit as 2-3 months of expenses, so that rest of the money can earn a better interest.

Comments: Did you know about Auto sweep account earlier? Do you think it will be helpful for you and do you plan to enable it?

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{ 443 comments… read them below or add one }

1 Hitesh March 31, 2011 at 4:56 pm

I have checked at hdfc website and it states that it has some service charge attached to this sweep in facility. In that case the interest % may reduce more.

Reply

2 Manish Chauhan March 31, 2011 at 5:01 pm

Hitesh

Can you give me the link you are checking, I looked at this site : http://www.hdfcbank.com/personal/accounts/fixed_deposits/sweep_in_account/sweepin.htm

also in general this facility is not chargable , but if bank decides to charge for it , I am not sure if we can do anything ,you have to choose or not-choose .

manish
manish

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3 Sidharth March 31, 2011 at 10:24 pm

Hi manish,

Once again very informative article.

I am just 1 month old to this website & so excited that, i read all the articles from 2007 in just 1 week.
its help me a lot in my finanancil planning
ex-no. of mutual funds reduced to 10 from 17.
-restart few discontinued SIP.

Thanks for all your hard work.

Reply

4 Manish Chauhan April 1, 2011 at 1:16 pm

Sidharth

Thanks for sharing your experience, I am happy that you took some actions by getting motivated from this blog . thats really inspiring , these actions are the thing which will take your financial life from one level to another .

Keep reading :)

Manish

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5 Nitin Gupta April 1, 2011 at 10:53 am

The hdfc link, has a statement “You can avail of both, a SuperSaver Facility as well as a Sweep-In Facility if you have linked your deposits to a Savings Facility”. It means that super saver and sweeo in are different.
I am confused.

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6 Manish Chauhan April 1, 2011 at 1:18 pm

Nitin

Are you NRI ? because Super Saver seems to be a Sweep-in kind of facility for NRI customers from HDFC

Manish

Reply

7 Manish Chauhan April 1, 2011 at 1:22 pm
8 raju March 31, 2011 at 5:00 pm

Hi Manish,

Nice article once again.
It will be good,if we can get the info of the banks which offers this kind of facility with different names.
Because people have savings account in different banks not just ICICI,HDFC,SBI.
As I know, IDBI ,Indian bank also offers similar option with some different name.

Once again thanks for your article.

Regards,
Raju

Reply

9 Manish Chauhan March 31, 2011 at 5:07 pm

Raju

IDBI calls it Sweep In account , not sure about Indian bank

manish

Reply

10 Murali September 19, 2013 at 5:14 pm

Hi Manish

How to avail this facility if we already have a savings bank a/c (salary a/c) with idbi.

Regards
Murali

Reply

11 Manish Chauhan September 25, 2013 at 2:09 pm

Talk to their customer care !

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12 Gopal Gidwani March 31, 2011 at 6:56 pm

Hi Raju,

Some of the banks that offer this product under different names include:
IDBI Bank – Sweep-in Savings Account
Axis Bank – Encash 24
Union Bank – Union Flexi Deposit
HDFC Bank – Super Saver Facility
Bank of India – BOI Savings Plus Scheme
Oriental Bank of Commerce – Flexi Fixed Deposit Scheme
State Bank of India – Multi Option Deposit Scheme
Allahabad Bank – Flexi-fix Deposit
Bank of Maharashtra – Mixie Deposit Scheme
Corporation Bank – Money Flex
United Bank of India – United Bonanza Savings Scheme

This list is a little old. If any bank has withdrawn the product or changed the name for the product then I am not sure of it.

Best Regards
Gopal Gidwani

Reply

13 Manish Chauhan April 1, 2011 at 1:19 pm

Gopal

Thanks for the info , I have added it on the main blog

Manish

Reply

14 Abhilash March 31, 2011 at 5:03 pm

Lets say that I enable the autosweep facility on my account. I then breat it and sweep back the entire amount after 6 months. So do I get the FD interest rate for 6 months on the auto swept amount assuming that there is no penalty?

Reply

15 Manish Chauhan March 31, 2011 at 5:09 pm

Abhilash

Yes , you get the interest for any duration for which FD was there . Also note that you dont have to do anything manually from your side ,. For you it will appear as if you have all the money in cash , this sweep in converstion of extra cash into FD is all by technology .

manish

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16 shanu February 24, 2014 at 6:12 pm

pls tell in more detail if minimum period for fd is 1 year .
can we get the intrest for 6 month for fd in auto sweep ?

Reply

17 Manish Chauhan March 3, 2014 at 11:11 am

You will get interest for whatever duration you open it

Reply

18 Hitesh March 31, 2011 at 5:06 pm

Hi manish,

the link is the same as you mentioned but under the heading sweep in facility there is 3rd point of services and fees. but when we click on it it does not show the fees.

Thanks
Hitesh

Reply

19 Manish Chauhan March 31, 2011 at 5:08 pm

Hitesh

That link is a general “fees” link and not for this particular service .

Manish

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20 Sanghmitra March 31, 2011 at 5:08 pm

Hi,

It’s astonishing how we didn’t knew such easy way of parking money…Good info…
Will go for it soon..
Just need to clarify, does it work like “every excess amount at month end frequency ( correct me if wrong) gets transferred to FD at particualr interest rate ( which is what?). When will be the maturity date?

Reply

21 Manish Chauhan March 31, 2011 at 5:14 pm

Sanghmitra

When you enable the service , you will have to tell the bank about all these details that how long the FD should be like 1 month , 3 month or 1 yr etc . Depending on your inputs , it will be functioning .

Manish

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22 som April 1, 2011 at 12:17 pm

I think in SBI the system by default takes it for 12 months.In case of Bank of Baroda it is by default for 180 days.

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23 Manish Chauhan April 1, 2011 at 1:20 pm

Som

But dont they ask you for your personal prefference ? I thought if a investor does not mention any personal preference , then only the default numbers come into picture ?>

Manish

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24 Amrit August 10, 2012 at 12:52 pm

Hi Manish,
I think you are right. by default SBI put the sweep account money for 1 yrs. I have an experience for that. I had opened the account in SBI but i was not aware about the rules and regulation of sweep account. I deposited around 20,000 in my account and few day later i saw them in sweep account for 1 year, then only i came to know that there is something like sweep account.

Reply

25 Manish Chauhan August 10, 2012 at 5:37 pm

So for your case sweep account was activated by default ? that should ideally not happen !

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26 Amarnath March 31, 2011 at 5:23 pm

This is what ICICI says about auto-sweep account !.

Dear Mr. Reddy,

Effective October 1, 2005, funds from your savings account will be moved to create fixed deposits only on your specific requests.

We are unable to service your request to continue the facility of Auto-sweep in your account as the last date (January 31, 2006) to place a request for continuation of the facility is completed.

This is intimated to all our customers along with the account statements.

However, you can give specific request to the bank to create a Fixed Deposit by sweeping money from your savings account and link the FD so created to the savings account.

Features of Money Multiplier account ( earlier known as auto invest account or quantum optima):

The creation of linked Fixed Deposit (FD) will be done only on specific request from the customer.

1. You have to give specific request to the bank to create a Fixed Deposit by sweeping money from his savings account and link the FD so created to the savings account.

2.Minimum balance in the savings account should be Rs.15,000 to generate a linked FD request

3. FD requests will be made in multiples of Rs.5,000 only.

4. You may have more than one FD linked to the same account. you need to give specific request for each FD creation and linking.

5. The linked FDs will be under the same Customer ID.

6. All FDs linked to the account will be enabled for automatic reverse sweep in multiples of Rs.5,000 when the balance in the savings account falls below Rs.10,000.

7. FDs will be broken in LIFO (Last In First Out) basis for reverse sweep.

Kindly note that Money Multiplier Account is also updated in the “Terms and Conditions” section on the web site http://www.icicibank.com.

Reply

27 Manish Chauhan March 31, 2011 at 6:21 pm

Amarnath

Thanks for sharing this, when did ICICI send you this email ? because it seems auto sweep with ICICI will not be that attractive !

Manish

Reply

28 Amarnath March 31, 2011 at 8:58 pm

it was last month when I try to enquire on the product. Yes they made it very difficult enroll , they allow online FD’s / Insurance / and other products. But not the sweep-account , may be they dont want to encourage ppl to use the sweep-account facility as it cost more to them .

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29 Manish Chauhan April 1, 2011 at 1:24 pm

Amarnath

Thats bad . Other readers have also enrolled for this facility and they seem to be ok with it , check other comment

Manish

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30 JayaprakashReddy April 2, 2011 at 10:30 am

Amarnath,

I’ve been using this service since last couple of months. Yest, there is a difference in this facility from other banks. This facility is one way automatic. If you have excess you can create FD above 15k and they will reverse sweep the amount whenever your balance goes below 10k. It looks good to me and whenever I deposit amount in the account I’ll create money multiplier FD and throughout the month whatever payments are going from my account, they will reverse sweep the amount from FD to savings account and also they add interest for the amount you kept for that duration even if it is 1rs.

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31 Manish Chauhan April 4, 2011 at 9:44 am

Thanks for the update from your side

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32 Vijay April 11, 2011 at 1:49 pm

I called ICICI bank customer service and they said auto sweep facility is not available now. Instead they have money multiplier in which customer has to create Linked FD which will earn FD interest. This amount will paid if customer doesn’t have sufficient balance to serve cheque request.

Reply

33 Manish Chauhan April 11, 2011 at 5:23 pm

Vijay

Its only for existing cusomters right now .

Manish

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34 shyam March 31, 2011 at 5:24 pm

I knew abt the Auto-sweep account earlier, but surely i hv learnt something extra here abt the penalty charges from banks and the various names under which the banks offer.

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35 Manish Chauhan March 31, 2011 at 6:22 pm

Shyam

Thats great to know . Share something with us which we have no covered here

Manish

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36 Ninad April 3, 2011 at 5:26 pm

In case of HDFC they have penalty of 1% on part of the FD which breaks. IDBI bank does not have such penalty.

One more thing with HDFC bank is the FDs break in FIFO method. ie oldest FD breaks first. My own experience was that due to this none of the FDs completed their full term. Now a days I manually break the FD online (mostly the last one created) in case of emergency funding.

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37 Manish Chauhan April 4, 2011 at 9:51 am

Ninad

hmm.. Breaking FD’s in FIFI style does not look to good to me. As you said it does not help you gain the maximum returns . It should be LIFO style

Manish

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38 KRANTI November 5, 2012 at 9:26 pm

Hmmm….manish LIFO-FIFO must have reminded u of ur computer engineering days!! :-) and the same is for me too!! Nice to hear these terms!!!

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39 Manish Chauhan November 6, 2012 at 2:56 pm

Yup !

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40 viswanadham June 9, 2011 at 1:33 pm

I heard that HDFC Bank does not allow online liquidation of an FD created manually in a branch. Nothing about it is written on its website, but do you have some experience on this issue?

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41 Tribhu November 25, 2011 at 8:56 am

This is true that FD created from a branch can not be canceled from site. I got this information through mail from HDFC.

Tribhu..

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42 Manish Chauhan November 25, 2011 at 11:03 am

Tribhu

I am nt sure if thats true for all the banks , i think in ICICI its possible

Manish

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43 tarun June 4, 2011 at 9:29 am

8979658160 hello…………………………….

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44 Vikas March 31, 2011 at 5:25 pm

Lovely article Manish. I think this is something which many people can make use of. Thanks for sharing.

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45 Manish Chauhan March 31, 2011 at 6:22 pm

Vikas

Thanks . Share it with your friends too

manish

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46 shyam March 31, 2011 at 5:25 pm

But, surely this will be valuable to many viewers.

1ce again Manish, Thkx for the effort.

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47 Manish Chauhan April 1, 2011 at 1:25 pm

Shyam

Thanks

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48 chandermani March 31, 2011 at 6:13 pm

One problem i have faced in the past when i used such a facility was that the account statement becomes very cluttered. There are entries for all sweep in\ outs and making sense of the account activity is nearly impossible.
This factor should be kept in mind while using this facility. My experience was with ICICI bank.

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49 Manish Chauhan March 31, 2011 at 6:23 pm

Chandermani

Thats a good info to know , I was not aware of it :) . Yes if a person is too sensitive about uncluttered ness than one will have to think about it

Manish

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50 P Venkatesan March 31, 2011 at 6:17 pm

Nice article.Somebody only know this facility.But some banks give lot of facility,like SBI give the total balance in passbook( balance,avail balance).But Dhanalakshmi Bank,only balance availability in passbook.

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51 Manish Chauhan March 31, 2011 at 6:25 pm

P Venkatesan

Thanks for sharing that info . I think one account in SBI is something which one should definately have . What do you say ?

Manish

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52 Sameer Bhiwani March 31, 2011 at 6:54 pm

I have one of these accounts from HDFC, but I have never seen any FD transactions, or got any sweep in/out notifications. I really have no way to find out what part of my money is earning what interest.

Moreover, the sales exec who sold me the a/c said anything above 50k will get FD interest; I told him that I’ll take it only if the amount is 25k, not 50k. He said he will get it done.
But when I got the a/c docs, it showed 1 lakh – i.e. only amount above 1 lakh will get FD interest. When I called him again, he made excuses.
But for amount even about 1 lakh, I don’t see any activity or have any way to really say that this has worked.

Is there anything else that needs to be done to enable this? How do you know on what amount, how much interest you got and for what duration?

Sorry if this sounded like a rant, I just had to ink it! :)

Sameer

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53 Manish Chauhan March 31, 2011 at 7:03 pm

Sameer

Thanks for that info, Generally bank will ask you in the form what amount you need as “Threshhold” limit . banks will have their own “minimum limit” . If you have sweep in enabled , then you should be getting the benefit , It cant happen that Bank is not giving it to you and incase they are not providing you benefit, its a clear case of service defeciancy and you should be complaining abiout it to Bank and then to Banking Ombudsman (coming next in the article) .

You need to take a step and enquire about it, because you are loosing some potential money .

manish

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54 Sameer Bhiwani March 31, 2011 at 8:42 pm

Thanks Manish. This is where I have a doubt – perhaps any HDFC customer using this can answer – how do you know what is the amount earning FD interest? Should we just see the interest amount and be happy (like savings interest)? or do we have a right to know how they arrived at that amount (like regular FD)?

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55 Karun April 1, 2011 at 12:55 am

Hi Sameer,

My experience tells me that pvt sector banks charge a lot of money for small services.

In your case keeping aside 1 lac in savings A/c at 3.5% defeats all the purpose of opening a Auto Sweep In A/c.

SBP provides this facility for 10k with interet rate of9.75% (for 1 year).

Karun

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56 Sameer Bhiwani April 1, 2011 at 10:04 am

@Karun
Yes, that’s the reason why I negotiated it to 25k, but the ‘senior sales exec’ was a fraud, his ethics were not as good as his english!

Sameer

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57 Manish Chauhan April 1, 2011 at 1:28 pm

Sameer

ok , so this becomes a clear case of negligence by the bank , Have you complained to bank about it and it has been 1 month passed from that date ? Now you have to approach banking ombudsman and I am sure they will take care of this , may be a little late but, be a bit patient .

See my next article on Banking ombudsman !

Manish

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58 Rakesh March 31, 2011 at 7:15 pm

Manish,

Once again very good article.
I had checked with HDFC bank few months ago and they said i cannot link it to my existing savings account and would have to open a new account and link it.
That’s just too much pain to manage another account.

Rakesh

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59 Vishnu April 1, 2011 at 12:50 pm

Hi,

U can do it online through netbanking without any request.

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60 Somen Jana August 27, 2014 at 8:58 pm

dear Vishnu,
Can you kindly tell me the procedure to activate the auto sweep facility through net banking?
Thanks in advance

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61 Manish Chauhan April 1, 2011 at 1:32 pm

Rakesh

Ask them for a link on the website where its mentioned that you cant enable it on your existing account, if they can give you the link , then its fine .

Else tell them you will complain to Banking ombudsman about it, lets see what do they say in that case

Manish

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62 Pratik Agarwal March 31, 2011 at 7:21 pm

I too have an experience with Bank Of Baroda, and my experience regarding the clutterness in pass book was same. Its very very hard to tackle the transactions from FD to normal account,

regarding interest rate & charges I am not aware, I just once tried my brain to see if all debits & credits were genuine, :)

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63 Manish Chauhan April 1, 2011 at 1:37 pm

Pratik

So do you feel that the extra money earned by this facility is not of value compared to the uncluttered ness in your Pass book ?

Manish

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64 Gopal Gidwani March 31, 2011 at 7:45 pm

Hi Manish,

I dont think there is a charge for this service from the bank. This is offered as a complimentary service with the Savings Account to encourage people to keep money in their Savings Bank Account rather than putting it in a debt fund. If they penalise customers for availing this service then customers will not opt for this service and it will beat the entire purpose of this facility.

When I was doing research on the same topic, I did visit websites of a number of banks offering this product. But I did not find anywhere mentioned if any bank is charging for this service. If you are talking about any specific bank which is charging for this service then I am not sure and I may be wrong. But as a general trend since this product is a complimentary product and this benefits banks more than the customers (even though customers get the liquidity of a savings account and returns of a fixed deposit) so it makes no sense for banks to charge for this product as it will dissuade customers from availing this product.

I did read some readers complaining about their account statements cluttered because of additional accounting enteries due to this facility. But I feel the cluttered statement is worth it if it helps the customer earn an additional 4-4.5% over and above the normal return of a savings account of 3.5%

Best Regards
Gopal Gidwani

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65 Manish Chauhan April 1, 2011 at 1:54 pm

Gopal

Agree with you on all points . Just that some banks are not that excited to make this facility easy enough for customers . There many blockages and rules which keep people stay away from this service.

Manish

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66 Ganesh March 31, 2011 at 7:47 pm

So what about the tax part of this. We all know that if you take the tax part into consideration FD gives a pretty bad returns.

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67 Manish Chauhan April 1, 2011 at 1:05 pm

The taxation part is same as FD ,all interest is added to your income .

Manish

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68 Paresh March 31, 2011 at 8:28 pm

Thank you for this information.
Really,smaller things can change to bigger if we provide proper attention and take care of it.
Information you provided is really in welfare of investors.

Just one thing I would like to update,,to avail sweep in facility of IDBI bank one needs to maintain average annual balance of Rs.50,000/- in FFD.
Thank you.

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69 Paresh March 31, 2011 at 9:39 pm

one correction in my above comment:
quarterly avg balance of Rs 50,000/- to be maintained in ffd ,,its not annual avg balance.

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70 Manish Chauhan April 1, 2011 at 2:15 pm

Paresh

Differnet bank have their own limits . IDBI has a bit over streched limis i guess :)

Manish

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71 Paresh April 1, 2011 at 10:53 pm

yes.but idbi advantage is the zero balance account with all facilities and no service charges for imp. services.even they don’t charge for DD,,outstation cheques etc….

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72 Manish Chauhan April 4, 2011 at 9:52 am

Paresh

I think thats more important thing for a normal customer . IDBI has been positioning it self very well in last 1-2 yrs as a customer friendly bank which does not charge for basic things .

Manish

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73 Ahmad Zaib March 31, 2011 at 8:47 pm

No I didn’t know about this and as always this is some nice information! :)

Thanks Manish once again!

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74 Manish Chauhan April 1, 2011 at 2:16 pm

Ahmad

Great :) . Use it now and spread the word

Manish

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75 Marshal March 31, 2011 at 9:15 pm

thanks manish for sharing, am using SBI MOD facility from past one year and i think i did mention this somewhere in your blog as a comment .. and it is really worth barring cluttered pass book or online statement..

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76 Manish Chauhan April 1, 2011 at 2:18 pm

Marshal

But dont you think its better to get 3-4% return even if your pass book is bit cluttered .

Manish

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77 Anunay March 31, 2011 at 10:15 pm

I believe its not worth, although the returns of upto 10% looks attractive but when it comes to quantum of interest then interest earned is not substantial . It only increases the complexity and I am sure even a financial expert will find it difficult to reconcile the statement especially when FD is broken in units of less than Rs. 5000.

also savings ac gives interest of 3.5% on daily balance now making the sweep facility not very attractive. Earlier this facility was USP of Private banks but now a days even customers also dont show any interest in this type of product.

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78 Manish Chauhan April 1, 2011 at 2:21 pm

Anunay

Why do you think daily interest on saving bank will give enough return , it still comes out to be around 3.5-3.7% .

Also Financial experts dont go that deep into your Passbooks to look at number . Can you share what exactly is the reason you think this is not worth the hassle ?

Manish

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79 Anunay April 4, 2011 at 9:53 pm

Hi Manish

I had opened a auto sweep and reverse sweep account with ICICI bank in 2002, however after 1 and half year the interest I earned was around Rs. 2800 considering my average credit was Rs. 48000 pm and my minimum balance was Rs 15000 at any point of time.

Being a financial expert myself i found that understanding and reconiling of my statements was a herculen task. Trust me being well educated in finance and even being a financial expert I had to spend a lot of time to reconcile my bank statement, I wonder what a normal person would go through if he would have been at my place. 6-10 years back every bank was boasting of offering auto sweep and reverse sweep facility which I am sure no bank boasts of. even if they are providing this facility they never boast of or even mention about this facility in any of its brochure.

Net net, reward earned by this facility will never match the expectations according to the balances kept in the savings account. .

For the person whose average credit is Rs 10000, the kind of returns he would get will never be the worth considering the trouble he would go through reconciling his statements and it would be the same with a person with average credit of Rs 5 lacs monthly.

On percentage returns perspective it might really be very attractivebut when it comes to absolute returns its not a good proposition

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80 Manish Chauhan April 5, 2011 at 10:24 am

Anunay

Ok , so by “net return” , you mean everything considering number returns + inconvinience too ? I dont know many who actually reconcile their bank statement personally ,they are mostly interested in seeing money in thier account . thats all

For those people what do you think ?

Manish

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81 Anunay April 6, 2011 at 11:17 pm

Ha ha…. those people cant even make out how much they have earned they will just have a feel good factor that they are earning FD interest rate (Upto 105 in today’s scenario)

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82 Karun April 7, 2011 at 12:09 am

Hi

Just coreecting you here its 109.75 in todays scenario (FDR for one year)

Karun

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83 Karun April 1, 2011 at 1:02 am

Hi

Why the pasbook is cluttered? I dont see any reason for the same.

Kindly remember interest in credited to A/c on quarterly basis in most of the banks.

If you money sweeps in or out how does it affect your annual statement? Only the interest component should affect it.

Thirdly I think in most of the banks there is a sys to show TOTAL BAL and AVAILABLE BALANCE in A/c statement or passbook/

Regards
Karun

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84 Manish Chauhan April 1, 2011 at 2:22 pm

Karun

Yea even I think there is no much problem with the clutter .

Manish

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85 Karun April 1, 2011 at 1:05 am

Manish,

Kindly also mention in your article that in this resp case FDR cannot be made for special days.

For eg SBP was giving special rate of 9.75 % for 999days and 555 day. UBI is giving sp rate for 1100 days.

Sweeps In cannot be made for 999 or 555 days. It would be made only for straight fwd time periods like 6 mon, 1 yr, 2 yr etc etc

Karun

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86 Manish Chauhan April 1, 2011 at 2:53 pm

Karun

Yea .. I have also mentioned that one should not over do it . If one knows that the money will be locked for many months , then better to go for other products .

Manish

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87 Vijay April 11, 2011 at 2:22 pm

ICICI bank provides Linked FD(Money Multiplier) with spaecial rates(390/555 etc). Through net banking, there are two options for customer, first is special interest and another is normal one.

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88 Saurav Sinha April 1, 2011 at 1:10 am

Hi Manish…. gud article once again… I knew about it through Mr.Gopal Gidwani’s bachatkhata.com …. just decided to go for it…. I have a salary account in SBI so my queries are to U n Marshal whos a fellow SBI account holder :

1)To Manish – What is the difference between min balance & threshold limit in case I switch from salary-account to Savings Plus account?

2) To Marshal – What kind of deposit options do I get ( Fixed-deposit/Term Deposit/Special term Deposit) & which is better in terms of returns/tax-implications?

3) To Manish – What is the meaning of ” Quarterly compounded Interest ?” if I opt for Special Term Deposit? Is it compound-interest on money available in account every quarter-end? What will be the tax implications?

4) To Marshal – Can it be operated from outside India? I mean if I open Savings Plus account now & after few months I move outside India then will I be eligible/able to maintain this account simply by maintaining quarterly avg balance?

5) To Manish – Just for learning may I know the formula to calculate the money one receives after maturity of a particular fixed-deposit/term-deposit/special term-deposit after taking into account tax implications?

Thanks everyone for bearing with my lllloooonnnnnggggg comment !!!

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89 Marshal April 1, 2011 at 11:05 am

@Saurav sinha,
my replies
#2. term and special deposit..which is better i don’t know.
#4. yes it can be operated from outside india.. via netbanking.
more details on SBI MOD facility is available here
http://www.statebankofindia.com/user.htm?action=print_section&lang=0&id=0,1,19,114,189

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90 manivannan April 5, 2011 at 11:19 am

Dear Sir,

Thank you for very nice article. Regarding comment by Mr. Marshal and link he provided about SBI,

It says withdrawal can be made through overdraft facility. What is this?
It also vaguely says ATM can also be used. Can we break FD with ATM also. Can someone please confirm this?

Full details in each bank is hard to find. So difficult to choose where to use this facility.

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91 Manish Chauhan April 5, 2011 at 12:21 pm

Overdraft means you can withdraw more than what you have in your account as bank considers you as preffered customer .

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92 Marshal April 5, 2011 at 12:22 pm

@manivannan,
with respect to ATM usage, i can tell you my experience of SBI. every month a new FD account is created from Saving bank account(SB). if my SB account have a balance of 25k then FD account is created with 20k. It means only 5k left in SB. Now if i do a ATM withdrawal or NEFT transaction of worth 6k then automatically (to be more precise instantly) 1k is sweeped-in from FD to SB using LIFO method. Instantly interest is credited and also tax is deducted. as of now am not clear on tax calculation and penalty charges. but am sure that am getting more than 3.5% returns.
p.s. Also its not an overdraft :)

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93 Manish Chauhan April 1, 2011 at 2:58 pm

Saurav

1. Minimum balance is the saving account minimum balance which has to be maintained by you in any case . Threshhold limit is set by you above which hte money becomes FD , so minimum can be 5k and threshhold limit can be 30k , just an example

3. Monthly Compounded interest means that the interest will be calcualted each quarter and the interest will be added back to the amount . So if one says 8% interest compounded quarterly , then you get 2% interest each quarter . the yearly return turns out to be more than 8% in that case .

5. You first find the maturity value by A * (1+r)^T , where r = rate of interest and T is total tenure , This is yearly forumula , If interest is compounded quarterly then r will become r/4 and T will become T*4 .

You then take hte totla profit and add it to income , and pay tax

Manish

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94 khalid April 1, 2011 at 8:50 am

Hi Manish,

Very nice and descriptive article as usual. I know about this Auto Sweep for last 6-8 years as my account in ICICI is giving me this feature.

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95 Manish Chauhan April 1, 2011 at 2:59 pm

Khalid

Thanks for sharing it , someone above said that ICICI auto sweep has some issues . can you check that

Manish

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96 dr maj gowri shanker April 1, 2011 at 9:38 am

dear manish
sorry you are not correct in explaining this concept
an educated investor will park his surplus money in SB account only when he needs it in the very short term- say 20 to 30 days and any thing more than that should go to liquid fund (if the requirement is less than 6 months) and more than that to short term debt fund for a requirement of 1-2 years

liquid funds give a return of 5-6% and short term debt funds a return of 7-8% (even 10% based on the prevailing interest rates)
whereas the money parked in auto sweep -fixed deposit will attract the interest only for the period it was held. sbi offers 5.5 % for three months,4% for two weeks (and not at least 7%)

now let us assume that one withdraw the money in 40 days. the liquid fund will give 5-6% for 40 days. whereas SBI will give 5%(for lessthan 45 days deposit it is 5%) minus penality charge of 1%

if you are in 30 % tax slab the amount that you keep either in bank account or FD sucks away more making the liquid/debt fund (liquid/debt fund returns attract short term/long term capital gains tax based on the time period they hold which is attractive than the other)

the liquid fund encashment also happens in 1 working day (what big liquidity crunch is going to happen as long as you have credit card + cash less medical policy+25000 in your bank balance )

and another reason manish just think why all corporates park their liquid money in liquid funds and not sweep in accounts !

as you say small things matter a lot – and this too

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97 Manish Chauhan April 1, 2011 at 3:32 pm

Gowri Shankar

I have mentioned in the article that sweep in facility should be enabled by anyone who has no clarity on for how long his money will be lying idle in an account . If a person is very clear that his money will not be needed for a specified time period , then yes , what you say makes sense .

Manish

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98 Anunay April 4, 2011 at 10:02 pm

Liquid fund never gives you auto facility which manish is taling about in this post. Also liquid fund needs lot of human interference and never ever you can access that without visiting amc or you have to be really net savvy to transact every other day be it buying new units or redemption.

Also dealing with liquid funds is really painful and works only if you have heavy amount. for small amounts pain will be always higher than returns

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99 dr maj gowri shanker April 12, 2011 at 10:51 am

hi Anunay
even learning to cycle and swim is also painful
but once you under stand the concept of what i said and start practicing , it is absolutely painless
all the best
regards
gowri shanker

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100 Vijay April 11, 2011 at 2:32 pm

This facility is very much useful when you want to put some money against your future commitments like post dated cheque/ECS, where in you want to make sure that sufficient balance is available when ECS request comes.

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101 Francis September 28, 2012 at 1:51 pm

Dear dr maj gowri shanker,

You have mentioned, “now let us assume that one withdraw the money in 40 days. the liquid fund will give 5-6% for 40 days. whereas SBI will give 5%(for lessthan 45 days deposit it is 5%) minus penality charge of 1%”

May I know which liquid fund gives 5-6% return for 40 days? For SBI Savings Plus breaking the MOD is without any penalty. Pls get your facts correct.

You are correct liquid funds are tax efficient, but that is for people in the higher tax brackets. That advantage will also be removed, if DTC comes into effect.

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102 Harsh Agrawal April 1, 2011 at 9:44 am

I remembered once my ICICI CC told me about it and I deposited money into FD.. So when ever I needed extra money it always cut down from my FD… Though what we did was manual.. Never knew there is an automated facility for this.. Thanks for this.. Enabling this feature now..

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103 Manish Chauhan April 1, 2011 at 3:33 pm

Great

you can enable it and all things will happen in the background .

Manish

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104 Rupali April 1, 2011 at 10:09 am

Hey Thanks Manish

I was really looking for something like this so i was thinking of recurring deposits but just because of unware of this option. Now that i got to know this i will definitely going to take advantage, really helpful info.

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105 Manish Chauhan April 1, 2011 at 3:38 pm

Rupali

good to know that it helped you .

Manish

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106 M Anand Kumar April 1, 2011 at 10:19 am

Hi Manish,

Very good article on sweep account. As we know that tax is deducted on earned interest of FD’s. Can you let me know the tax deductions wrt sweep account. Does it depend on the tax slab i belong to or is it same for everyone? i hope the tax deductions is uniform across banks…..

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107 Manish Chauhan April 1, 2011 at 4:42 pm

Anand

FD interest will be added to you income for the year and taxed accordingly . Tax does not depend from Bank to bank , it depends on the govt slabs

Manish

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108 M Anand Kumar April 1, 2011 at 4:58 pm

Hi Manish,
My doubt is how will the bank be aware of which tax slab the person is currently. Do they track it via PAN card info provided? I am not clear with tax deductions wrt sweep account. Additional info wrt would be helpful.

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109 Manish Chauhan April 1, 2011 at 5:02 pm

Anand

bank does not need to know that , they cut the TDS if your interest is more than 10,000 , but incase its less, they dont cut it , Its your responsibility at the end to pay the tax .

Manish

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110 M Anand Kumar April 1, 2011 at 5:12 pm

Manish,
Thanks for the information Manish:-). I have been using the sweep facility in SBI from 1.5 yrs. Accumalated interest was around 15k but due to immediate in need of money i had to break all the Sweep deposits. I got 8k only instead of 15k . I didn’t enquire the details with the bank wrt this either.

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111 Manish Chauhan April 4, 2011 at 9:59 am

Anand

I think you should atleast ask them how they cut 8k , getting just 7k when you could have got 15k is a big blow . thats 55-60% loss by just breaking the FD ?

Manish

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112 M Anand Kumar April 5, 2011 at 12:05 pm

Manish

Yes i definately had a loss of 50%. Whenever sweep account FD is breaken it only gives the info of the credit interest, the amount withdrawn from the respective sweep FD (FIFO) and not the details of charges for early breaking. After searching i figured out that the tax deducted is almost 2k (e-tax statement in online SBI) and probably remaining 5k for breaking before the term. I should collect the sweep account rules from SBI Bank.

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113 Manish Chauhan April 7, 2011 at 8:01 pm

Anand

So if you say that 50% loss was after considering taxes also , then it does not look that bad , as it was looking earliar ,. If you are into the top most tax bracket , then 30% tax will anyways go away + your penalty and it should be good enough !

Manish

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114 M Anand Kumar April 11, 2011 at 9:54 am

Manish,

I agree with u Manish but, I am under the tax bracket of 10%. In the e- tax details, the sweep accounts yielding interest more than 2k were deducted under the tax bracket of 20% and the rest were 10%. Need to collect details from bank

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115 pattu April 1, 2011 at 10:20 am

Yes its a good feature. However in my view its for the couch potato investor who has idle money in the bank. If one is saving regularly for ones goals then typically not much money would left in one salary or SB account except the emergency fund. For those the sweep is irrelevant since they would typically earn more interest from other investments.

If one is tempted to sweep part of your emergency fund one should think again (You also state this in the article). If its in an FD it cant be accessed by an ATM right? I would expect it to take at least half/one business day or to get it back into the SB account. So this would spell trouble for dire emergencies. Credit cards cant help at all times. So a good amount of emergency cash in the SB account is needed. If you invest the rest in a disciplined manner I don’t see any need for the sweep facility.

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116 Nitin Gupta April 1, 2011 at 11:07 am

Ooops, i had the impression from the article that, we can withdraw(sweep out) the money using ATM also….

Manish pls confirm on this..

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117 Marshal April 1, 2011 at 12:15 pm

@Nitin, SBI MOD facility allows ATM withdraw and its automatic.. that’s the whole idea of auto-sweeps in/out

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118 pattu April 1, 2011 at 4:33 pm

Agreed. Acc. to Raag Vam Datt, the FD is automatically broken.
http://www.raagvamdatt.com/Auto-Sweep-Facility-Smart-way-to-make-your-money-work-harder/176/

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119 Manish Chauhan April 1, 2011 at 4:44 pm

Nitin

Not all banks , but some give that facility and technology takes care of it , You have to find out more about your bank yourself and share it with us here :)

Manish

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120 Nitin Gupta April 1, 2011 at 10:59 am

there is a limitation for HDFC account holder, dont know the what is the reason for this…

This facility is available on NetBanking only to customers having a Savings or Current account with the Bank where the holding pattern is SINGLE i.e. there are no JOINT holders

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121 Manish Chauhan April 1, 2011 at 4:54 pm

Nitin

thanks for sharing this information . I am not sure if other banks also have any kind of restriction like that .

Manish

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122 Gopal Gidwani April 2, 2011 at 10:28 am

Hi Nitin,

For joint account holders this restriction is there because some joint account holders select the mode of operation of the account as “Jointly” which means for every withdrawal both the account holders have to sign the cheque. So for the bank they will not be able to assess while making a fund tranfer / withdrawal from the internet whether both the joint account holders agree to the transfer or not. So because of this I think this restriction must be there for internet banking for joint account holders.

For a joint account if the mode of operation of the account is “Either or Survivor” then even if one account holder signs the cheque still the withdrawal will be allowed.

Whereas in a single account where the mode of operation of the account by default is “Singly” such restriction will not be there as the single accounholder himself is the whole and sole operator of the account

Best Regards
Gopal Gidwani

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123 Manish Chauhan April 4, 2011 at 10:00 am

Gopal

Thats a good explaintion . makes sense !

Manish

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124 Nitin Gupta April 7, 2011 at 10:33 am

But they shud allow if it is a joint acc with either or survivor mode…

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125 Manish Chauhan April 7, 2011 at 1:00 pm

No idea why they have this restriction , some banker will be able to tell us that

Manish

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126 som April 1, 2011 at 12:35 pm

I shall tell my experience about the Sweep-in feature:

I opened a sweep-in account with SBI in September,2010.I had to write a proper application addressed to the BM, for the conversion.It was not done at the outset although i had explicitly mentioned in the account opening form.So we have to check explicitly.

What i could do:
– I could set the “threshold value”, bu default it is 5000 in SBI [anything above 5k is swept to the FD account called the "MOD Balance" ]
– I could not set the duration, the system does it for 12 months by default.

I got 6.75% tied to my MOD balance.
In the netbanking info of http://www.onlinesbi.com my “MOD Balance” clearly shows the swept-in amount as a separate account comeplete with the duartion, interest rate etc.
And the normal SB account shows the rest amount with 3.5%.

Now my question is if now i start pushing in more money what will happen ?

Will i get the 6.75% interest or i shall get the current FD interest which is around 7.75%[for 12 months] ?

regards,
Som

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127 Marshal April 1, 2011 at 12:49 pm

@som,
you will get current rate of return. in my case since am availing this facility from last one year, i have accounts with 6, 7 and 8.25% rate.. every month a new account is created provided you have more than 15k in your SB account..

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128 som April 1, 2011 at 1:41 pm

Thanks Marshal … this info will be of great help to me.

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129 Manish Chauhan April 1, 2011 at 4:56 pm

Marshal

Thanks for the info :)

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130 Vishnu April 1, 2011 at 12:40 pm

Hi Manish,

Good article about one of the hidden features of consumer banking.

I have been using this Auo-Sweep facility for more than 2 years regularly. It earned me at least 2k/year for the surplus and emergency money. The only drawback with this is it is very easy to break the rules and the FD. :)

I have tried this in 3 Banks at least. In my experience, HDFC is the best for below reasons.

1. You can start the FD and enable Auto-Sweep online. Everything will be effective in matter of minutes.
2. If you have multiple FDs, the FDs will be broken on FIFO basis. So, you will not loose interest.
3. FD will be broken to the nearest 1 rupee. So, if u want 1001 rupees, only 1001 rupees will be broken from your FD, not 5k or 10k like other banks.
4. For the broken part of the FD, the interest will be credited the day it is broken. (No need to wait till the Quarter End or till the FD Maturity)
5. If the FD gets broken during day time, and if you deposit the broken amount (online or anyway) before the close of banking hours, your FD will not be broken. (Very useful in case of emergencies)
6. No penalty for Breaking FDs. But, the interest rate will be as per the number of days the principle was with the bank.
7. For Salary Accounts, Auto-Sweep is free. For others, it will be free if you open a FD of 50,000 without Auto-Sweep. (I think now it is free for Salary Accounts also, not sure).

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131 som April 1, 2011 at 1:35 pm

This was good info !! Thanks …

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132 Sameer Bhiwani April 1, 2011 at 1:51 pm

Hi Vishnu,

I have also had this same setup for 2+ years now, can you tell me how exactly you know that how much amount is in FD, does the a/c balance become low? How do you know on what amount you have received the interest? Does it show anywhere how much amount is earning FD interest?

Sorry for the multiple questions, but I’ve been following this thread for proof but I’m not seeing any.

Sameer

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133 Vishnu April 1, 2011 at 3:12 pm

Hi Sameer…

Every time, your FD gets broken, there will be two transactions in your statement.

1. How much of your FD was broken (and deposited in your savings)
2. How much interest was earned?

Example:

31 Jan 2011—SWEEPIN CR-00774*******16———5457.00
31 Jan 2011—INT. ON SWCR ON-00774*******16–97.67

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134 Sameer Bhiwani April 1, 2011 at 5:01 pm

Interesting, I have never seen such transactions in my a/c at all..ever!
Must check with the bank on this!
Thanks!

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135 Manish Chauhan April 1, 2011 at 5:03 pm

Sameer

Check if its really activated in your account or not ;) , LOL

Manish

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136 Sameer Bhiwani April 1, 2011 at 5:12 pm

Yup, I found few settings-type pages that let me chose which source a/c and target FD a/c, etc but still no go.
Will have to call the bank for this one.

Sameer

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137 Sameer Bhiwani April 1, 2011 at 5:47 pm

Ok major clarification of terms for me –
Sweep-IN – is when the money from an FD is moved IN to the savings a/c to honour cheques or withdrawls.
Sweep-OUT – is when the money above a threshold automatically moves to an FD.
Sweep-in is automatically set for when Sweep-out is set. But, reverse is not true.

In the case of HDFC, sweep-in comes with SavingsMax a/c, which I took. Sweep-out comes with MoneyMaximizer that is an option given to SavingsMax a/c holders. I wasn’t aware that this is optional, due to mis-selling + my own ignorance and since it has been a while I had this a/c and took no action – due to laziness.

While I will get this activated, I think having 1 lakh sitting in the bank just to get an auto FD is a waste, so will certainly move this money to a debt fund soon.

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138 Manish Chauhan April 4, 2011 at 10:09 am

Sameer

Is this “sweep-in” and “sweep-out” thing true for every bank ? I think by default the original facility is same as “Seep-out” which you have mentioed , but its called “Auto-sweep” or “Sweep-in” by banks .

Manish

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139 Vishnu April 1, 2011 at 5:35 pm

And, you can link the existing FD to Savings Account online… In your Netbanking you should be able to see if it is already linked or not.

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140 dattatreyahg May 11, 2012 at 10:03 pm

I got a statement as on 31 mar 2012 from sbi,which clearly showed how much interest has accrued in each of the MOD transfers separately as also the interest credited for s/b a/c separately.

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141 Manish Chauhan April 1, 2011 at 4:57 pm

Vishnu

Thanks for the detailed review and information . It will help a lot .

Manish

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142 Karun April 1, 2011 at 10:16 pm

Hi Vishnu

FD shld be broken in LIFO order otherwise customer will lose..

Karun

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143 Karun April 1, 2011 at 10:18 pm

Hi Vishnu,

Pls check again if there is no penalty for breaking FDR on pre mature basis.
I think HDFC must not have debited the penalty amount but would have directly credited 1% less interest to you,

Karun

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144 Vishnu April 5, 2011 at 12:02 pm

Hi Karun,

Yeah, it was my mistake… HDFC started this penalty only recently I think.

Otherwise, ‘No Penalty for premature Withdrawals’ was one of the promotions of HDFC when I started using this facility.

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145 Gopal Gidwani April 2, 2011 at 10:37 am

Hi Vishnu,

I think the FDs should be broken in LIFO method and not FIFO method. Coz when I had this facility activated with ICICI Bank they used to break the FDs in LIFO method and in multiples of Rs. 5000. The logic for LIFO is that the previous FDs which have been there for a longer period stay intact and complete 1 year before they are automatically renewed and the customer gets the maximum benefit of the higher interest rate.

Please check with HDFC Bank if they are following LIFO Method or FIFO Method of breaking FDs for pre-mature withdrawals.

Best Regards
Gopal Gidwani

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146 Manish Chauhan April 4, 2011 at 10:10 am

Gopal

I think some one mentioned above that HDFC has it in FIFO method , does not serve teh purpose , as explained by you very clearly

Manish

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147 Vishnu April 5, 2011 at 11:54 am

Hi Gopal,

ICICI uses LIFO and HDFC uses FIFO method for breaking the FDs. I think LIFO is more beneficial, which I did not realize until now.

Any one has any thoughts, when FIFO will be beneficial? Or is it, LIFO wins hands down?

Thanks,
Vishnu

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148 Vishnu April 6, 2011 at 10:37 am

A small update on HDFC FDs.

Though HDFC bank breaks the FDs in FIFO basis, you have option tp close the FD (in any order) through online.

Thru Netbanking, use the option “Liquidate Fixed Deposit”. The catch is that you cannot break the FD partially. The entire FD has to be liquidated. The interest accrued will be shown in the final page before confirmation.

Regards,
Vishnu

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149 Manish Chauhan April 6, 2011 at 10:40 am

Vishnu

Thats a good update . I am sure many will understand their banking better :)

Manish

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150 Viswanadham June 9, 2011 at 1:37 pm

Another catch is that HDFC Bank does not allow you to liquidate online the FDs created offline.

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151 KRANTI November 5, 2012 at 10:26 pm

amazing info to the core!!!

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152 SIVANANDHAN April 1, 2011 at 7:48 pm

karur vysya bank calls it as rainbow savings account

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153 Manish Chauhan April 4, 2011 at 10:40 am

Sivanandhan

thanks for the info :)

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154 Vishnu April 5, 2011 at 12:00 pm

I made my mother open this Rainbow Savings account in KVB. After having this account for more than 1 year and after maintaining 5k-10k balance in this account, she almost had “0” interest at the end.

With no use after speaking to the customer care, we closed that account.

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155 Manish Chauhan April 7, 2011 at 8:02 pm

Vishnu

I feel your threshhold limit might be very high , did you enquire ?

Manish

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156 Vishnu April 8, 2011 at 11:30 am

Manish..

Now, I don’t remember the threshold… But, I was sure that the amount lying in the account was at least double that of threshold…

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157 Manish Chauhan April 8, 2011 at 11:58 am

Vishnu

In that case ask the bank to give you details of how you didnt get any extra interest .

Manish

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158 Vishnu April 10, 2011 at 1:16 am

Yeah… I should have done that… Now, it has been more than a year since I closed the account.

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159 vinay kukreti April 1, 2011 at 8:40 pm

Dear Manish,

Thanks for sharing.Just want to know which one should I prefer for short term, sweep-in by HDFC Bank or Liquid Fund online service looking into return part and emergency need.

Again Thanks

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160 Manish Chauhan April 4, 2011 at 10:11 am

Vinay

If you are clear about how much long can you lock in the money , then Liquid fund or some debt fund would be a better choice .

Manish

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161 vinay kukreti April 5, 2011 at 2:43 pm

Dear Manish,
I am regularly reading your articles and QA.
Under Q&A,I have noticed that gradually when we move towards bottom of blog page,its initial word getting disappear(problem with page set up),making it difficult to read.Please look into the matter.

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162 Manish Chauhan April 5, 2011 at 3:26 pm

I didnt understand the exact issue , are you using IE 6 ? If yes, that is not supported now, upgrade your browser .

manish

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163 SEEMA CHHABRA April 1, 2011 at 10:18 pm

I was not knowing it before. Thanks a lot for this information.
I have logged into my ICICI bank a/c and SBI bank a/c also but could not locate this facility. I want to do it online. Is it possible? Please guide.
Please provide the name of feature for Andhra Bank and Punjab National Bank also.
Thanks a lot once again for this article.

Seema

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164 Marshal April 2, 2011 at 12:51 pm

@seema
in case of SBI you have to visit branch and submit application to activate MOD facility

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165 Atul April 2, 2011 at 3:28 pm

I have been using this facility using ICICI Bank for the last few years and its really useful.

Regards

Atul

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166 Manish Chauhan April 4, 2011 at 10:13 am

Atul

Thanks for letting us know that . Some users have complained that ICICI has stopped this service, but its stopped only for new customers .

Manish

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167 Atul April 4, 2011 at 1:36 pm

Hi Manish,

Not at all. In fact my father activated the same recently few months back.

Regards

Atul

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168 Vishnu April 5, 2011 at 11:57 am

Hi Atul,

I & my wife has ICICI account for more than 5 years. We too were informed that Auto-Sweep facility is no more available.

However, Flexi FD can be opened either through phone or in-person. i.e. every month, we have to open the FD not through an auto-mated process.

Regards,
Vishnu

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169 Shamim December 10, 2011 at 7:12 pm

I have recetly applied for the facility at ICICI Bank and the facility for Auto sweep is avaliable.

But you have to select the tenure for Deposit as 6 months 1 days or 12 months 1 days as these are the only 2 option avaliable

Regards
Shamim

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170 Manish Chauhan December 11, 2011 at 6:20 pm

Shamim

The duration has to be selected by you only. others can take that decision for you .

Manish

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171 Paresh April 2, 2011 at 7:11 pm

I got following response from ICICI bank

With effect July 1, 2005, the auto-sweep facility in the savings account has been withdrawn. Instead, the creation of linked Fixed Deposit will be done only on specific request from the customer.

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172 Manish Chauhan April 4, 2011 at 10:13 am

Paresh

I found out from a ICICI operations person that ICICI is giving this auto-sweep facility to old customers only , and not the new one’s . How old customer are you ?

Manish

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173 Shamim December 10, 2011 at 7:13 pm

Auto Sweep facility is currently avaliable for NRO Customer as well

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174 Sumeet Kataria April 3, 2011 at 4:08 pm

Awesome article Manish :)

Slowly and steadily following ur blog :)

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175 Manish Chauhan April 4, 2011 at 10:14 am

Sumeet

Great.. keep reading , slow and steady is better

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176 Dinesh April 4, 2011 at 10:51 am

Earlier having this account was a boon but since interest rates have gone up bank have started charging 1% on the amount sweeped in the savings account. Now will that be still cost effective calls for some study on it. but i have since stopped it and have an OD on my FD account in case of emergencies.

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177 Manish Chauhan April 7, 2011 at 8:04 pm

Dinesh

Which is your bank ? Also 1% penalty on sweeping back money from FD to saving bank looks ok to me as its a general penalty charged by anyone ,. At the end you have to see if you are earning any better than normal saving account .

Manish

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178 Rahul Seth April 4, 2011 at 12:53 pm

Thanx for sharing this arcticle Manish.
My experience of using SBI Auto-Sweep:
1. Auto sweep-out will not work for any online transaction. Works only at ATMs.
2. They follow LIFO.
3. No penalty if broken before maturity.
4. Interest enarned on daily basis.
5. Interest rate are flexible. I expereiced from 6%-9.5%
6. They won’t maintain minimum thershold of the saving account.
7. All sweep-in & sweep-out are in statement.

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179 Manish Chauhan April 4, 2011 at 1:26 pm

Rahul

Thanks for sharing it point by point, it was the best way one has given a review :) . Thanks

Manish

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180 Rahul Seth April 4, 2011 at 8:24 pm

Thanx Manish. I am the regular follower of ur blog..Love all of it…Told my relative & frnds..It’s really nice of you to be open source..oops! lil technical :-)

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181 Manish Chauhan April 7, 2011 at 8:08 pm

Rahul

lol .. we have a windows version too incase you want to look at it : http://jagoinvestor.org/

manish

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182 Bhaskar April 29, 2011 at 1:17 pm

Like to add some more about SBI auto-sweep. Using it since last three years.

1> Sweep out works for instant/scheduled fund transfer(linked/3rd party/Bill pay).

2> Facility expairs automatically after one year.You have to reapply and resubmit Form 15G. (As explained by my branch manager and her immidiate junior official.

3> If anybody have different opinion/experience regarding my point no 2 then it is evident that SBI employs incompitent persons as branch manager for their outside metro branches. So non metro customers should think twice availing auto sweep facility in SBI.

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183 Manish Chauhan May 2, 2011 at 12:28 pm

Bhaskar

Thanks for providing that info on SBI Auto-sweep ! , it will really help some of the readers !

Manish

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184 Neelesh Singh May 24, 2011 at 7:30 am

How is interest credited , tax and penalty deducted when some amount is sweeped in the savings account from MOD?

@Rahul Seth
It works with online transactions.Minimum balance is 5000.after that amount excess of 5000 is sweeped out in multiples of 1000 on 30th of every month.

Neelesh

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185 dattatreyahg May 11, 2012 at 10:20 pm

In SBI,the transfer is done immediately on exceedThreshold. Does not wait till month end

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186 Nilesh G April 4, 2011 at 5:45 pm

Hi Manish,

Excellent Article, something which I really needed an info about.

However, quite a few points here:

1. When I spoke to HDFC representatives (both at branch & over the phone), they claimed that they do have this facility, but any extra amount lying in my savings account above a threshold limit “wont be automatically” transfered to fixed deposits. I will have to do it manually by accessing my account over the internet.So every time I feel that the threshold limit is crossed, I’ll have to create an FD & link it to savings account using FD sweep-in option.

2. So, I can do that manually – Not a problem. But if I have Rs. 1,20,000 in my savings a/c & I want Rs. 20,000 available i.e my threshold, then the remaining Rs. 1,00,000 has to be converted into FDs. My question is – should I create a single FD of Rs. 1,00,000 or multiple FDs of Rs. 1,00,000 say 10 FD of 10,000 each. Pls suggest.

3. With regards to the penalty, I undesrtand the 1% penalty is on interest and not on principal. But would it be on FD interest (say 8% – 1%) or savings a/c interest (say 3.5% – 1%). As per the ET Wealth supplement(dtd. 4th April 2011), penalty is on savings a/c interest rate on the amount ‘swept-in’ from FD to savings a/c. It would be great if you can show us the calculation.

4. Finally, which deposit type is better, (a) Days (betn 7-180 days) (b) Monthly Interest payout (c) Qrtrly Interst Payout or (d) Reinvestment of interest. Please remember that sweep-in facility is being opted since it is my emergency fund

Thanks once again for your great efforts.

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187 Manish Chauhan April 5, 2011 at 10:36 am

Nilesh

1. Someone talked about it i guess , see this comment : http://www.jagoinvestor.com/2011/03/auto-sweep-bank-account.html#comment-21653

2. Breaking it into multiple FD’s would be good . However dont make 10 FD of 10k , better make 4 FD of 40k , 30k , 20k and 10k . that would make sure you have less FD’s and you can take out any amount :)

3. It would mean that you will get 1% less return

4. d option looks good to me

Manish

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188 Manish April 5, 2011 at 5:18 pm

Good One Informative article…………..

Will surely go for this option

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189 Manish Chauhan April 7, 2011 at 8:09 pm

Welcome

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190 Manish April 5, 2011 at 6:03 pm

Hi,
Suppose i have 1 lac 50K in my account and i set up , cut off limit off 50K for Auto sweep. …. so 1Lac K will be automatically transferred to Fixed deposits

Now suppose i utilized 25K from my bank account…………… Now , money in my account is less than cut off limit set up by me …

So in this case the Bank FD is broken by bank and money is transferred to my account or not ?

Reply

191 Manish Chauhan April 5, 2011 at 6:25 pm

Manish

No , your FD will be like that only . Now you will have 25k in your account and next time when you deposit some money , the excess money than threshhold will again be in a FD . Like if you again put 40k in account ,your total is 65k , so 15k will go in FD

Manish

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192 manivannan April 6, 2011 at 8:36 am

Dear All,

This article :
http://economictimes.indiatimes.com/personal-finance/savings-centre/analysis/sweep-savings-and-fd-accounts-to-make-idle-cash-earn-more/articleshow/7850426.cms?curpg=1

on page 2 shows a nice graphic about how this works. Looks like if you break the FD is some banks effective interest is only 2.5% for the amount broken.
So if the money is not going to be idle then this facility seems same as SB in terms of interest. If the money is going to be idle then isn’t FD better?

If the money is going to be spent short term then the interest earned in that period will anyway be same so loss to investor is not that much

This requires careful consideration and reading of rules. Its not all that attractive as it seems at first sight. More clarity is required.

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193 Manish Chauhan April 6, 2011 at 10:26 am

Manivannan

Yes , the graphic there is really nice one .

Note that sweep account is not for the investors who have that much of clarity on where their money will be in short term , Its mostly for those who are unsure about the cash flow coming in and out , especially “out” .

Manish

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194 manivannan April 6, 2011 at 10:40 am

Thanks for your reply. Having read the post and all the comments I have come to the conclusion that the sweep account is best used with the contingency/emergency fund. When emergency comes you are anyway going to spend so you don’t care about the less interest when you break the FD.

When there is no emergency if you take short term FD like one year then the fund will grow due to enhanced interest.

This is also an ideal account to create an FD ladder with small amounts:
http://www.taxvista.in/blog/saving/fixed-deposit-ladder/

I hope my understanding is correct.

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195 Manish Chauhan April 6, 2011 at 10:43 am

Manivannan

You are correct . Emergency funds can be best created with sweep in account, because of the simple fact of “unsurity” of use of the funds , so untill you really use it above a limit , that part will earn a good return. Atleast better than the salary account .

Manish

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196 Vishnu April 6, 2011 at 11:18 am

Hi Manivannan..

Ladder is very good way (only) if Sweep-in option is not available for you.. Because, it gives you convenience that at least one FD matures every month and available for you (assuming that you can manage till the end of the month).

When you have Sweep-in option, you can have the entire emergency fund into one Sweep-in FD with the tenure of your choice (which gives highest interest). Because, you can withdraw any amount on any given day during emergency.

Minus:
Since you have to choose FDs with different tenures (e.g. 1-6 months for 6 month emergency fund) it means you will get less interest, especially when you don’t end up using the emergency.

Regards,
Vishnu

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197 Ramanji April 6, 2011 at 11:27 am

http://www.b2.icicibank.com/

Hi
In ICICI ,there is a account called b2BranchFree bank,(no physical branch exist, No ATM).
in this automatically FD will be created for default duration of one year,
or else we can create manually also, by specifying duration,
there is NO premature withdrawal penalty charges on any type of FD created in this account.
both auto sweep and manual sweep facility is availble.

i am using this facility from last 2 yrs .

Thanks,
Ramanji

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198 Vishnu April 6, 2011 at 12:00 pm

Wow.. That’s really good.

I have planned to open an ICICI/HDFC account for my mother/father to get their FDs opened online and still get senior citizen benefits..

With Zero Balance, I think it is good.. Let me check with the customer care or rep…

Regards,
Vishnu

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199 Rohit April 6, 2011 at 12:30 pm

Thanks for all information. can you please tell me how much bank charge to activate this service. And how can we close auto-sweep account.?

Thank you so much manish sir

Rohit

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200 Manish Chauhan April 6, 2011 at 4:21 pm

Rohit

I dont think there is any charge for activating this . You should be able to close this service anytime you want.

Manish

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201 Sampath April 11, 2011 at 8:52 pm

I am using ICICI b2 a/c since last 2 years, the experience is just awesome.
I never had any issues with them.

Every Saturday night, they run the sweep in multiples of 5000 and start considering it as a Fixed deposit. When i try to withdraw money, they try to break it in multiples of 1000. For eg: if 5000 is in FlexiDeposit, and if i withdraw 6000/- , they will break 1000 from FlexiDeposit [4000 will still remain as FlDeposit]

Disadvantage i saw is
1) Its a pure online account, withdrawing/transferring money can be done to another account. (NEFT)
2) After the Flexi Deposit reaches 1 year, the Principle+Interest will be reinvested as a fresh deposit. (Instead of continuing the same interest % rate )

Over all i would recommend this account to others, since its a zero balance account.

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202 Manish Chauhan April 12, 2011 at 10:19 am

Sampath

Thanks for sharing your experience . I would use the knowledge in next coming posts

Manish

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203 Sunil April 12, 2011 at 10:36 am

Manish,
Very nice to read this article.
Ironically CITIBANK doesn’t have any such facility. :(

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204 Manish Chauhan April 12, 2011 at 11:41 am

Sunil

Is it ? Such a big bank should have that faciliuty which every other bank has

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205 Vidyasagar April 13, 2011 at 9:15 am

Citibank has a account called “Multi Deposit Account”. This is the closest to the auto-sweep account in Citibank.

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206 Manish Chauhan April 13, 2011 at 10:55 am

Thanks for info

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207 Sahil Bhatia (v-2sahb) December 12, 2011 at 8:03 am

Multi Deposit is not a separate account from Savings account.
CITIBANK has a Multi deposit feature incorporated in a regular savings bank account.
This is very similar to Auto Sweep in.
However here are some more details that I found out today :-

1) You can only open a Multi deposit / Flexi Deposit, only if you have balance more than Rs. 50,000 in your account.
2) For Example, if you have Rs. 2,00,000 in your account, then a Multi Deposit can be of a Max of Rs. 1,50,000.
3) When you open a Multi Deposit through online banking it says that the final amount generated after the tenure will be applicable for TDS. However as per CITIBANK Customer care Executive, “the Interest generated above a total of Rs. 10,000 only is applicable for TDS ” .

Thanks again for such a nice post. Keep sharing.

Thanks
Sahil

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208 Manish Chauhan December 13, 2011 at 8:58 pm

Sahil

Thankls for sharing that part

Manish

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209 Sunnydoc April 14, 2011 at 9:28 pm

Nice Article, I have opened such an account at Syndicate Bank where I have parked my emergency fund. Its called Premium Savings Account.

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210 Manish Chauhan April 15, 2011 at 12:28 am

Thanks for the information :)

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211 Mehul Makwana April 18, 2011 at 1:44 am

Hi Manish,

I already have a auto sweep enabled with my Bank of India account since more than 8 months which is joint savings account with my parents.As myself and my parents are earning members we do transfer the surplus amount from our respective saving accounts to this account which can earn more interest.
By the way manish keep the good work, i have been a regular follower of jagoinvestor since one year.

Regards
Mehul Makwana

Reply

212 Manish Chauhan April 18, 2011 at 10:36 am

Mehul

Thanks for sharing your experience . Keep reading

Manish

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213 Saichaitanya Toshniwal May 26, 2011 at 11:47 am

Dear Manish,

This is regarding the Query on “Super Saver” facility with HDFC Bank.

I have made the Fixed Deposit of Rs. 60,000/- on 3rd May’11 with the interest rate of 7.70% and after a week I have applied for “Super Saver” facility.
For this facility, the “Overdraft Limit” amount is Rs. 45,000/- (i.e. 75% of the FD amount which is Rs. 60,000/-). The maturity date of FD is on 19th Nov’11 i.e. the FD period is for 6.5 months.

As the interest rate charges applicable on the Overdraft facility will be 2% P.A. over and above the Fixed Deposit Rate. i.e. 9.70% of FD amount will be the charges for “Super Saver” facility (Correct me if i am wrong)

Incase, if I won’t use the Overdraft limit amount, then is there any charges applicable for this facility?

Reply

214 Saichaitanya Toshniwal May 26, 2011 at 11:49 am

I have made the Fixed Deposit of Rs. 60,000/- on 3rd May’11 with the interest rate of 7.70% and after a week I have applied for “Super Saver” facility.
For this facility, the “Overdraft Limit” amount is Rs. 45,000/- (i.e. 75% of the FD amount which is Rs. 60,000/-). The maturity date of FD is on 19th Nov’11 i.e. the FD period is for 6.5 months.

As the interest rate charges applicable on the Overdraft facility will be 2% P.A. over and above the Fixed Deposit Rate. i.e. 9.70% of FD amount will be the charges for “Super Saver” facility (Correct me if i am wrong)

In case, if I won’t use the Overdraft limit amount, then is there any charges applicable for availing “Super Saver” facility?

Reply

215 Vrishali Talele May 27, 2011 at 10:55 am

Thanks for the article…..Very informative….
My husband is serving for Indian Navy. He has converted his salary account into Defence salary package (DSP) in SBI. The questions I need to be answered are:
1) Is the threshold limit set by the bank or customer?
2) Let us suppose that threshold limit is set as 50000 and the amount in the account is 150000. So once the account is converted into DSP, Rs. 100000 will be shown in MOD (Multi option deposit) balance and Rs. 50000 will be shown in Balance. Now if I hav Rs. 10000 left in my balance and I want to withdraw Rs 15000, then will Rs. 5000 from deposit account (fixed deposit) be automatically transferred to transaction (savings) account so that it can be withdrawn? Is it possible to withdraw more money than shown in savings account balance?
3) What does easy overdraft upto 2 months means?

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216 Peenuts May 29, 2011 at 1:49 pm

Very useful information indeed. Thank you

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217 Nirvan V. Jain June 1, 2011 at 2:34 pm

Can you please Guide me which is this scheme in Bank Of Baroda ?

Is this “Auto Sweep” kind of functionality ‘Tax Direct Source’ ?

Plz help.

-Nirvan

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218 Sharad Jain August 9, 2011 at 9:10 pm

Hi manish,
plz let me know how banks deduct TDS on FD’s created under Auto Sweep Facility? Whether they deduct TDS at the time of sweep In (i.e at the time of withdrawing money from the account) or at the time of maturity?

And if they deducted TDS, how will i know about this deduction?

sharad

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219 Manish Chauhan August 9, 2011 at 9:18 pm

Sharad

there is confusion on this , looks like when you withdraw the amount , and when you sweep in is broken , the TDS is deducted , look at comments where people have talked about this .

Manish

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220 Harish August 13, 2011 at 9:51 am

The interest generated will be taxed at the tax rate slabs and hence the net return will be less, will it be good if it kept in the Liquid funds.

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221 Manish Chauhan August 15, 2011 at 9:40 am

Harish

How will it help if one puts in Liquid funds ? Even the return there is taxable .

Manish

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222 Amu October 9, 2011 at 2:24 pm

what is difference between multi option deposit scheme and premium savings account in SBI?

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223 Manish Chauhan October 10, 2011 at 11:25 am

Amu

Thanks for asking the question . For the best answer , I think it would be best if you can ask it on our forum . There are dozens of experts waiting to help you , I will also try to put my answers there , so that others can also benefit from your question.

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224 Laxman October 26, 2011 at 11:14 am

Manish

Thank for the articale….it is very helpul.

1)Is there any Mode balace facilities in Canara Bank.
2) will get interest on monthly basis or anually for mode balance ?

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225 Manish Chauhan October 26, 2011 at 1:29 pm

Laxman

Is this related to sweep in account ?

Manish

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226 Laxman October 26, 2011 at 3:42 pm

Yes Manish..

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227 Laxman October 26, 2011 at 3:44 pm

It is related to Sweep in account

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228 Laxman October 28, 2011 at 8:54 am

Hi Manish

I have not received any reply from you,pls let me know.

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229 Manish Chauhan November 5, 2011 at 6:12 pm

Laxman

Actually your question is not very clear . Please rephrase it in simple sentence

Manish

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230 Shan November 18, 2011 at 7:40 pm

Hi Manish,

Can someone do open more than one SBI account at different branch and City or within city?

It is valid/legal to have more than one account in same bank?

– Shan

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231 Manish Chauhan November 18, 2011 at 10:05 pm

Shan

Yes, its legal

Manish

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232 lokesh November 18, 2011 at 11:52 pm

but don’t hide your deposits from income tax….

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233 ghiuj November 23, 2011 at 11:25 am

good one.

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234 Laxman November 24, 2011 at 9:31 pm

Hi Manish

Please let me know which insurance company ULIP plan is good.

regards
Laxman

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235 Manish Chauhan November 24, 2011 at 10:54 pm

Laxman

Why do you want to invest in ULIP’s .. there are some plans which would be better than others , but in general common investors are not suitable to handle a ULIP

Manish

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236 Laxman November 25, 2011 at 7:16 pm

Hi Manish

It’s for Tax saving.
You told that there are some plans which would be better than others.may i know which plans are good ?

Regards
Laxman

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237 Manish Chauhan November 29, 2011 at 3:22 pm

Laxman

Which plans and which comment of mine are you reffereing to ?

Manish

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238 Mahavir November 25, 2011 at 10:40 pm

Manish,
I want to have a repeat confirmation that ATM WITHDRAWLS can continue in SBI savings plus scheme as in normal savings bank a/c irrespective of the threshold limit as long as money is available in the related MOD deposits.Also con firm that ATM withdrawl limits remain same as in normal saving bank accounts.

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239 Manish Chauhan November 29, 2011 at 2:50 pm

Mahavir

yea . .thats true .. what are the answer given by the bank on this ?

Manish

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240 Preet December 5, 2011 at 5:23 pm

Sir,i have saving a/c in sbi.pls suggest me for the min threshold amount in sweep a/c.means if i crossed the threshold thn wht wil loss for me.

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241 Manish Chauhan December 6, 2011 at 3:37 pm

Preet

The threshhold has to be decided by you

Manish

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242 Rahul December 10, 2011 at 3:33 pm

Sir, give the name of PNB saving scheme that offers above the same
like SBI MOD account.
i have SBI and PNB A/c
i already opened SBI MOD account but i also want to open same for PNB
but don’t know the scheme name

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243 Manish Chauhan December 13, 2011 at 9:11 pm

Rahul

Just search on the PNB website , you will get it

Manish

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244 Dr. Shreyans December 23, 2011 at 12:14 pm

A wonderful information given in detail… Thanks for that.. I infact searched for many sites to get information about savings plus and got goodly from here only. Thanks a lot.

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245 Manish Chauhan December 23, 2011 at 5:26 pm

Dr Shreyans

Good to hear that .. finally you got what you wanted . So finally you are clear on everything ?

Manish

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246 IDBI Customer January 6, 2012 at 1:22 pm

Without informing, IDBI bank started charging for NEFT and also imposed Quarertly Average Balance (QAB) on savings and current accounts. All this despite of voluntarily maintaining over Rs 50,000 daily balance on zero balance savings and current accounts.

Really feeling cheated after getting friends to open accounts with this bank.

IDBI is no longer a friend to all

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247 Manish Chauhan January 7, 2012 at 12:36 pm

A lot of banks have started that .. NEFT charges are now applicable

Manish

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248 Preeti January 13, 2012 at 12:23 am

Can anyone tell me clearly about HDFC sweep out facility. I was thinking to apply for this. Do they charge 1% penalty when the FD is broken??

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249 Manish Chauhan January 13, 2012 at 10:02 am

Preeti

This 1% penality means that you will get 1% less interest on your FD , you dont have to pay anything from your pocket

Manish

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250 Preeti January 13, 2012 at 12:27 am

Which banks dont charge any penalty for sweep in facility in these type of accounts??

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251 Manish Chauhan January 13, 2012 at 10:01 am

Preeti

Almost all banks do ..

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252 Preeti January 13, 2012 at 10:11 am

Thanks. Its better to take short term FD then, if i know i am going to withdraw all money say after 6 months.

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253 Rohit Verma February 15, 2012 at 8:25 pm

Preeti,

Open an ICICI B2 account, they don’t charge any penalty on premature withdrawl from the flexi account. Only TDS is deducted.

This account can be opened online at http://www.b2.icicibank.com

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254 kris January 16, 2012 at 12:17 am

Hi manish,
thanx 4 the really nice article.
i have a savings(not saving plus a/c) account in SBI since 2005.after reading ur article i went to my home branch and enquire them abt it.they did ask for pan,votter card,ration card xerox etc.submitted it all on 7th dec 2011.they told me i can chek the mod,avail bal etc in my passbook.till today my passbook is showing the same saving bal,no mod bal.when i asked abt it they said there are some “menu setting” problem for which this facility cant be started.they simply didnt utter another word abt it.i tried 2 search it in google but no satisfactory result come in the official website or others.
my question , is this facility for opening of new savings plus a/c only or it can be started on existing SBI savings a/c
regards.

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255 Sushil January 16, 2012 at 11:35 pm

How would you weigh the auto sweep against the recurring deposit? Say the tenure to be maintained is 1 year , then i guess RD would yield better returns ? Also is the intrest also taxable from auto sweep facility ?

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256 Manish Chauhan January 18, 2012 at 8:17 pm

Sushil

RD will deliver better interest but its done when you know about the cash flow in future .. sweep in accounts are for fuzzy future where you are not sure what amount of cash will be there in your account .

Manish

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257 Murty January 27, 2012 at 7:28 pm

Hi,
I have 10Lakh rupees in my AUTO DEBIT SWEEP ACCOUNT and I do not want to take it out for an year. The Online Account shows I can earn upto 94000 Interest. My question is what is the tax implication on this earnedinterest? If it crossess 10000, I have to declare it and I will be losing 30% of it.hence i will get only 65800, which will be 6.58% and not 9.4 %. What is your opinion?

Reply

258 Manish Chauhan January 28, 2012 at 10:19 am

Murty

Its your wrong belief that the tax is applicable only if interest from bank deposits are above 10k in a year .. its not the case , even if you earn Rs 100 , it has to be shown in tax return and tax is to be paid .. If interest is above Rs 10k , then the TDS is cut by bank , else not , so advance tax is paid by bank on your behalf if interest is above 10k .

So even in this case, whatever interest you earn will be added to your income and taxed . If you are so clear that you will not need the money in 1 yr, why dont you do a FD ?

Manish

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259 Murty January 28, 2012 at 12:18 pm

Even the interest earned on FD will be subjected to Income Tax. What shall we do?

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260 Manish Chauhan January 29, 2012 at 2:52 pm

Murty

yes .. the interest on FD is always taxable , what do you mean by “What should I Do” , you cant do anything here… you will have to pay the tax, there is no alternative

Manish

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261 Murty January 30, 2012 at 10:38 am

When I ask you what should I do, I mean to say to look for other avenues which generate more than this rate of interest! When you get 6.8% pot tax, for a honest declaration, the effort is not encouraging enough. if you are in the middle age, and you don’t need that fund, I think PF/PPF/VPF would be much better, as it has an EEE mode of taxation. RIght? Or, rather, put 50% into FD, and the rest into PF accounts, the returns would be tax exempt.
On the other hand, can we avoid tax and still get decent returns, legally?

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262 Deepak kumar Prasad January 29, 2012 at 3:37 pm

Hi Manish,
Superb article. I just came across your site today and am thankful to you for providing excellent information.

However, I have some queries. Lets divide this Auto sweep facility in 2 parts.

(1). Amount above threshold limit is automatically debited from savings account and deposited to a fixed deposit.
(2). Amount withdrawn from this fixed deposit in case savings account is running short of cash.

I hold HDFC account. On their website they have mentioned only about part 2 above. They have not mentioned on the amount being automatically debited from savings account and deposited in a fixed deposit. No mention of threshold limit. I am also bit concerned if they open new fixed deposit account every time the threshold is crossed or will they deposit in the existing FD account.

If we infer from HDFC site it shows we need to first open a FD and then convert it sweep-in with savings account . This is only the part 2 facility as I have mentioned above how does the part 1 actually works ?

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263 Manish Chauhan January 31, 2012 at 4:51 pm

Deepak

What is written in article is a general thing .. all banks their own tweaks in sweep in , in HDFC bank it can be differetn , go through comments .. there is lot of talk on HDFC there

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264 sanjay kumar January 30, 2012 at 5:16 pm

can we draw more than available balance from atm in auto sweep facility at SBI ATM.Iam SBI account holder.

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265 Manish Chauhan January 30, 2012 at 11:46 pm

Sanjay

You must have overdraft facility for that

Manish

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266 Kiran February 1, 2012 at 4:01 pm

Hi Manish,

Thanks for the great info. I’ve recently opened and SBI Savings account and was inquiring about the Saving Plus (auto-sweep) there. To my surprise the staff there told me the minimum amount/threshold limit to hold a Savings Plus account is 50,000. Is the amount stated legally right or they are seeking it for their business to run since the branch is fairly new.

I’m a salaried employee aged 28 with monthly income of 45K and my wife has a similar income. Below is my query:
We are planning to divert about 20K each month into our SBI acct…(with intention of having a Savings Plus). In such as case will it be very cluttered and complex since each month a FD will be started. Assume we have a 50K threshold in the Savings Plus.

–Kiran

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267 Paresh February 1, 2012 at 5:37 pm

I just opened a new SBI Saving Plus account and minimum balance required is 5000 and not the 50000!

However if you need GOLD INTERNATIONAL DEBIT card they will want to have minimum balance of 50000

Minimum balance for SBI Premium Account is 250000

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268 Soman February 18, 2012 at 6:47 pm

Hi
Thanks for the article.
Whether the Auto sweep account is accountable for TDS and if yes how can we releived from it.

Thanks
Soman

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269 meera February 23, 2012 at 3:50 pm

Hi Manish,

I really like your article.i just have one question what is the difference between saving plus and saving premium a/c in SBI and which one is better. I have applied for saving plus in sbi and also for gold international card but they have not mention 50000 minimum balance for this.As per sbi 5000 minimum balance for saving plus.I have one more doubt what is the total benefit for bank in this case if we can withdraw my money at any time and still we are earning higher interest without any penalty.i have applied for joint a/c with my husband and i am the primary a/c holder but i am not working right now. who will be liable for tax over interest.

thanks
Meera

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270 Manish Chauhan February 23, 2012 at 5:00 pm

Meera

You will be liable for tax over interest . I am not sure about the difference myself , better ask at http://www.jagoinvestor.com/forum/

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271 kris February 29, 2012 at 1:58 am

finally got autosweep enabled after 2 months(better late than to never come at all!)..manish i have a ques. suppose i have 10,000 minimum thresold mark and i have to pay 40.000 via debit card for online bill payment…now i have a MOD of 50,000 does the reverse sweep is true for online transaction also?? or have goto atm or write a cheque for that??

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272 Sachin March 2, 2012 at 10:46 pm

Manish, I have Rs. 31000 in my SBI Savings plus account. The account description is shown as “SBCHQ-SBP-GEN-PUB-IND-ALL-INR”. My banker told me its a savings plus account. But my MOD balance is still Rs 0.00 Do they create the FDs without showing it on the internet account? Is there a specific date in the month on which they do that? What should i do? How do i know the amount of which FDs have been created?

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273 Manish Chauhan March 3, 2012 at 10:24 am

Sachin

This question is very much specific to SBI PLus , better you discuss it on our forum : http://www.jagoinvestor.com/forum

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274 Arun Sharma March 4, 2012 at 5:30 pm

I am having an account in SBI, i haven’t started by Online Account due to some reasons and bad support of SBI.

I am just a graduate and working in a company, so don’t have much spending’s.

Recently i am having 30,384 Rs in my account, on 2 March i got my salary, 17,056

and my total is 47,440 on 2 March i checked this through SMS banking facility at around 10.40PM on 2nd March.

But on 4th March i.e today, when i check my account it shows balance of 5,440Rs

I get nervous what happens now, i thought someone has taken my money from my account but how?? i haven’t shared anything with anyone.

I go to SBI ATM and have Mini Statement its shows
42000 — DEBT SWEEP

i called SBI Toll-Free Number they told me that they transfer my money to MOD account.
But why they have done so, without my permission, is it the normal case.
I will go my Branch Office tomorrow and ask them.

Right Now i am having 5440Rs in my account, suppose i want to withdraw 10,000Rs.

How can i do so, Pls explain me, is it okay, Nothing to worry case.

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275 Manish Chauhan March 5, 2012 at 3:34 pm

Arun

There is nothing to worry .. Your account seems to have “auto sweep” activated :) . so any amount excess to some point , that gets converted to FD , actually in a way its good for you if you are not going to use the money for a lot of time , but if you are uncomfortable with this option , please ask them to disable it

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276 sourav March 11, 2012 at 3:22 pm

how can i gate the auto sweep facility???if i want to activate the auyto sweeep facility in my account then what will i do??

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277 Manish Chauhan March 11, 2012 at 6:25 pm

Just talk to your bank ! and ask them to activate it

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278 AB March 17, 2012 at 11:23 pm

Hi Manish

I have SBI SAVINGS PLUS account.

My threshold limit is 5k. I have some queries:

1. If i withdraw 2k from ATM, my fd will remain unaffected and savings balance will be 3k ?

2. My savings balance is 5k and i ve 2 FDs of ist — 65k and 2nd –41k. Can i withdraw 10k from atm ? If so, what will be my savings balance and fd balance? I mean , will my 2nd FD of 41 k break , or only 5 k will move from FD and 36 K FD will remain ?

When do we get interest credeited to savings account? In my account it shows 9.25% interest and maturity period s 12 months.

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279 Manish Chauhan March 18, 2012 at 11:45 am

AB

1. Yes

2. I am not very sure how it will work in SBI , but one of your FD should break and then above 5k , the new FD should get created.

Manish

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280 Sujan Kumar Dey March 21, 2012 at 4:43 pm

I would like to know whether this kind of account is treated as a PURE SAVINGS ACCOUNT? As the Govt has notified that customers earning interest upto Rs.10,000/- on Savings Account need not file IT return, so will it apply to this kind of accounts as well? Does the customer need to fill-up 15G/15H form to avoid tax deduction by the banks?

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281 Manish Chauhan March 21, 2012 at 7:14 pm

Sujan

The condition is not just that you should have upto 10k interest , you should also have income of less than 5 lacs to not file the tax return .

Also these are saving bank account only , just that above a threshhold , your money will be earning FD interest

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282 vinayak March 23, 2012 at 5:27 pm

i could not find autosweep in icici online account so i have started using moneymultiplier account in icici bank. it is the nearest thing i could find with sweep in facility. it has 2 format: standard and special. i have gone in for special with 590 days deposit and 9.5% interest rate. i hope its the same thing that we r discussing in this platform. please correct me if i m wrong.

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283 Manish Chauhan March 23, 2012 at 7:50 pm

Vinayak

I am not sure if its the same thing , because in auto sweep, you dont create the FD’s directly, it gets created on its own once your account balance goes above a level. Anyways , see if you are ok with what you have choosen , thats what matters !

Manish

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284 vinayak March 24, 2012 at 7:31 pm

thanx for reply. i was bit confused as the customer care were also not helping much and on website also they have given fixed deposit and money multiplier account as 2 different things.

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285 Manish Awasthi March 24, 2012 at 2:07 pm

Hi Vinyak,

ICICI has stopped Auto sweep facility in their S/b account ( I dont know the reason) .What u gone for is standrad FD ….

I’ve been fighting with icici branch mnager for past 2 months to re intiate the auto sweep in sb.
Last week i become frustated of icici bank and end up opening a new sb account in Yes bank and transferred all my money from ICICI to Yes bank as interst in yes bank savings is 7% and had also written an email to ICICI Sr management about my action. I’m waiting for a reply from them.

regards
Manish Awasthi

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286 vinayak March 24, 2012 at 7:33 pm

thanx for informing.

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287 vijay karthik March 24, 2012 at 2:09 pm

Hi Manish,

This article was very informative and definitely creates awareness about auto sweep facility. You have mentioned not to overdo or overuse this facility(in disadvantages section). Can you let us know whats wrong in over utilizing(because in any case we are gaining profit).

I am planning to utilize this facility in SBI. Kindly let me know if SBI charges penalty.
I have some doubts like
1)what would be the term of FixedDeposit?
2)what happens if we withdraw FixedDeposited amount prior to its maturity?
will they charge penalty

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288 Manish Chauhan March 24, 2012 at 3:28 pm

Vijay

Overuse here means that take this facility as added advantage, dont try to make an FD using this way if you can yourself create the FD manually.

1. That has to be decided by you and in most of the cases its more than 1 yr and if you break the FD , there are heavy penality charges
2. Yes

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289 vijay karthik March 25, 2012 at 10:53 pm

Thanks for the info, Manish :)

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290 vinayak March 25, 2012 at 3:06 pm

24th comment by Mr Jayprakash Reddy has answered most of my queries. i just wanted to know one more thing. i want to put about 50ooo rupees in this account. so should i create m m fd of 50ooo in one go or should i make 10 accounts of 5ooo. as i m not sure when i will need this money. which would be more beneficial

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291 Manish Chauhan March 28, 2012 at 4:45 pm

Vinayak

10 are too much , why not just 2-3 FD !

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292 deepak yadav April 12, 2012 at 7:50 am

it is very good deposit for every person for future saving account

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293 Manish Chauhan April 17, 2012 at 7:34 pm

Deepak

Its not any new deposit account, its just a feature .. thats all

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294 Sushant April 12, 2012 at 12:45 pm

Hi Manish,

Needed one information. I have opened a sweep account and gave a threshold limit of 5000. I was in a impression that threshold limit and minimum balance in my account is two different thing. Now the issue is i have kept less than 5000 but higher than 2000 in my account for a quarter. Bank has deducted 225 saying that the minimum balance of sweep account is the treshold limit 5000. This was told by the SBI branch manager. Could you please let me know if that is correct or is there any way i can raise this concern as branch manager himself is denying that.

Waiting for you advice

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295 Manish Chauhan April 17, 2012 at 7:33 pm

Sushant

It might be true .. most of the saving bank account have minimum balance of Rs 10,000 , so if you keep a threshhold limit below that then you are keeping low balance and on quarterly basis , you might face a penality

Manish

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296 Abhijit Dey May 3, 2012 at 4:05 pm

Hi ,
Thanks for having this forum.Really,could gather a lot of information.
I am having few queries regarding MODS account for SBI.

1. If the minimum balance in MODS account is 5000,and if I try to withdraw 2000 then my savings amount will be 3000.In that case I will be charged a penalty for not
maintaining minimum balance in the account.

2. It I try to withdraw 16000 and I am having a FD of 50000 then what will be my savings amount left.Will it be 0 and MOD balance=39000?Also in this case I will be charged
the penalty amount.

So the conclusion is if I withdraw money from this MODS account then I will be charged penalty..So is it really flexibel at the end of the day?

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297 Manish Chauhan May 3, 2012 at 7:14 pm

Abhijit

You can withdraw the money from your account or FD , but you also have to adhere to the minimum balance guidelines !

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298 Abhijit Dey May 4, 2012 at 10:09 am

Thanks Manish.I just wanted to know if the 2 points given below are correct.

1. If the minimum balance in MODS account is 5000,and if I try to withdraw 2000 then my savings amount will be 3000.In that case I will be charged a penalty for not maintaining minimum balance in the account.

2. It I try to withdraw 16000 and I am having a FD of 50000 then what will be my savings amount left.Will it be 0 and MOD balance=39000?Also in this case I will be charged the penalty amount.

So in order to avoid the penalty charge one has to replenish the withdrawal amount.Is this correct?

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299 Manish Chauhan May 4, 2012 at 5:07 pm

Abhijit

This should be best answer by SBI customer care, their info will be too the point and more authentic and reliable

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300 Sheeba May 11, 2012 at 11:29 am

How can I withdraw money / break a specific SBI – MULTI OPTION DEPOSIT ACCOUNT?

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301 Manish Chauhan May 11, 2012 at 11:43 am

Sheeba

You can just go to the branch and ask them for the breaking of the FD , Is there any issue you are facing in this ?

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302 Sheeba May 11, 2012 at 4:09 pm

Hi Manish,
Do I have an option to break it on-line?
-Sheeba

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303 Manish Chauhan May 14, 2012 at 10:54 pm

Sheeba

If it was created online, I am sure it should be breakable online too

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304 Sheeba June 11, 2012 at 5:04 pm

As you state, when e-STDR is created on-line, hope it is breakable on-line.
But will be it part – broken if I withdraw cash as similar to auto-sweeped MOD?

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305 Manish Chauhan June 12, 2012 at 6:55 am

It would depent how many FD are created and of what amount . If there is only on FD , then it will be broken even if you withdraw a small amount

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306 manoj May 21, 2012 at 12:27 am

what is the basis of interest payment under MOD scheme and when the interest will be credited in my saving account?
my saving a/c is salaried a/c.

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307 Manish Chauhan May 21, 2012 at 5:30 pm

Please ask your question is more simple manner with simple language

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308 BKM May 29, 2012 at 3:38 pm

Hi Manish,
Thanks for this beautiful article with a noble cause of educating the normal savings account holder about auto sweep facility. In the comment section there are some geeks challenging the efficiency of this product comparing them with MFs (non equity) and more attacking you as less known person. Hope and believe this will not bring you down and keep you away from good initiatives in future.
Let me share my experience about auto sweep account in SBI. I am using it since 2008. So far it was fine experience. I find two issue with them.
1> By default they will enable it for 12 months. There is no option ( though in papers) to me to select activation period. After using it for 4 years in different interest rate scenario now I can guess the reason. You have to apply for renewal every year. If interest rate is low they will kindly approve. If rate is as high as 9.25% (as it is right now) they will not reactivate it. Surprisingly they state ridicules reason for this (obvious all verbal) like a> system is not accepting right now. B> your KYC is not proper (even after submitting all document three times) c > you must have another SBI account in India where same PAN no is given. I came to know informally (from bank only) they have management directive to discourage customer to use auto sweep.
2> They will never update 15G form in system. So whenever FDs breaks they will deduct tax. In last three year in these way lot of tax is deducted at source. In my case it counts. Upon asking they are telling they accidentally missed my form to enter. When asked how that happened all the last three years they were silent. Actually if you use if well there will be new account every month. So you have to deposit 15G every month. For these case they even have the system such that if you give 15 G in the beginning of a financial year all subsequent mod accounts need not 15G separately.(to believe it you should not ask for the source because the system software SBI is using developed by software giants and are most unlikely to miss that out). Knowing the existence of this also they will not provide this facility to customer saying this facility does not exists. Only intention for this behavior to keep you away from auto sweep account. This will only change if interest rate going down.
3> Due to my recent frustration on SBI I am now looking for another bank who may provide auto sweep without any charge to its savings account holder.
Thanks
BKM

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309 Manish Chauhan May 29, 2012 at 9:23 pm

Better move to another bank , but i would say you also have option to complain to banking ombudsman about this behaviour from SBI and I am sure it will be heard , it can take some time though ! :)

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310 Sheeba June 7, 2012 at 12:02 pm

Hi Manish

Thanks for the previous answers.
I have a “minor” account for my daughter and it is operated by me.
Can I enable Auto-Sweep (Multi Option Deposit Scheme) in Minor acct?
Also I’m not able to create eSTDR/ eTDR for the Minor acct. Can you help me?

-Sheeba

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311 Manish Chauhan June 7, 2012 at 10:43 pm

There are a lot of restrictions from banks on minor accounts , whatever banks say about your question should be considered as FINAL .

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312 pandaba ku singh June 13, 2012 at 10:55 am

Dear Manish,

I am banker and impressed on your suggestion regarding solution on banking problem is very much attractive.plz continue in this way as u r having .
one thing can u provide me ur cell no when i will be in need i may contact u,

thanking you

p k singh

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313 Manish Chauhan June 14, 2012 at 3:54 pm

Thanks

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314 amit June 17, 2012 at 11:02 am

Dear Manish,
I have SBI Auto sweep Saving account. I have a query regarding account balance.
As My MOD balance is showing: 390000 rs and my account balance including all deposite account is 324425 rs. How they are not same. And i have even calculated and add the intrest as well. But still the figure is not matching. plz reply.

thanking u
amit baheti

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315 Manish Chauhan June 19, 2012 at 10:26 am

Amit

Can you explain in more detail .. I request you raise this query on Forum : http://www.jagoinvestor.com/forum

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316 Pankaj Sharma October 2, 2012 at 9:46 am

Hi Amit,

i am also facing the same.My MOD balance shows 20k more then the sum total of all deposit and account balance.
if you know can you let me know how system calculate MOD balance.

Regards,
Pankaj Sharma

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317 Shree June 21, 2012 at 11:01 pm

I have heard about this and was not aware in details.
This article is very much helped me to know more about auto sweep.
Yes I will enable this option for my account by this week end itself.

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318 Manish Chauhan June 22, 2012 at 8:10 am

welcome :)

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319 soma July 8, 2012 at 4:48 pm

Thanks for posting the article. However when I checked with my Financial advisor he adviced me to go for IDFC liquid funds rather than the sweep account as it gives better rates plus tax free and easy to transact also(just by sms). Can u throw light on this?

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320 Manish Chauhan July 9, 2012 at 8:58 am

Soma

Yes he is correct in a way .. Note that this article just gives information , its not a comparitive article

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321 Francis September 28, 2012 at 1:05 pm

Dear Manish,

Return from liquid fund is tax free? Pls guide soma properly.

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322 Manish Chauhan September 29, 2012 at 10:34 am

No , its not like that .. Its taxable

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323 Bikash July 19, 2012 at 9:35 pm

Hi Manish,
I have opend a FD of Rs 150000 at 9.75 interest rate for the period of 1 yr at the middle of a financial year and opted for quarterly interest payment to my SB account.That mean i ll get two installment of interest payment and that ll be less than Rs 10000 in the current financial year.will the bank deduct TDS in this case?

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324 Manish Chauhan July 20, 2012 at 12:08 pm

No , it will not :) . good tip !

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325 Bikash July 19, 2012 at 9:41 pm

Hi,
I have seen the RD do not attract TDS by banks. some banks offering variable RD. if i give the 1st installment of Rs 300000 and then Rs 100 in each month will it attract TDS. Is is better than to invest Rs 300000 in FD to avoid TDS? thank you

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326 Manish Chauhan July 20, 2012 at 12:02 pm

I dont think variable amount is possible in RD , for FD TDS is always there if your interest is more than 10k in a year !

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327 Bikash July 26, 2012 at 1:06 am

Hi Manish,
Variable RD is possible in some banks like UCO, INDIAN BANK etc.In UCO bank the scheme is known as UCO SOWBHAGYA RECURRING DEPOSIT SCHEME. ?Now you please clarify your answer.

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328 Manish Chauhan July 26, 2012 at 9:53 pm

Ok , never knew that ! .. thanks for that information !

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329 Bikash August 11, 2012 at 1:32 pm

Hi Manish,
Tell me about re investment plan.I have seen this chart in SBI.ex Rs 100 6 months 103.5306.what does it mean?If I want to invest Rs100000 for 6 months.what will be maturity amount? please clarify.

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330 Manish Chauhan August 12, 2012 at 9:53 am

Bikash

What plan is it , kindly explain a little detial

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331 atolani August 14, 2012 at 2:37 am

Hello

Today I called in ICICI to enable autosweep in my account & was informed that ICICI has discontinued this service. This service was introduced in 2008 & is now discontinued. Executive informed me that they have introduced a new scheme money multiplier instead of auto sweep, Which is similar but we have to create temp. FD’s manually (Yes, Its a turn off) I didnt opted for that, because I felt creating FD manually everytime I have surplus is too much.

More info is here http://www.icicibank.com/Personal-Banking/account-deposit/savings-account/moneymultiplier.html

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332 Manish Chauhan August 14, 2012 at 12:34 pm

that might be the latest development ! , thanks for sharing it with all of us !

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333 dushasan palei August 20, 2012 at 11:52 pm

please send me a link about how to generate auto sweep facility in state bank ok india online

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334 Manish Chauhan August 22, 2012 at 7:11 pm

Which link ?

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335 Sheeba August 23, 2012 at 1:52 pm

I have a 555 days FD which is maturing next month. How can I know if it will be 1 time investment or auto renewed for another 555 days again?

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336 Manish Chauhan August 26, 2012 at 1:04 pm

You should have choosen that at the time of opening. By default its just one time and not auto renewal . Talk to Bank customer care , they will tell you about this !

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337 chita September 14, 2012 at 8:03 pm

what is the difference between mod account and savings plus account in sbi

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338 Manish Chauhan September 18, 2012 at 1:19 pm
339 Arif Antapur September 17, 2012 at 4:49 pm

Hi Manish,
Thank you for your simplest explanation after reading your article I have changed my SBI savings to SBI savings plus which means MOD in SBI this month. I have given threshold of 8000.Bank has confirmed that it is done.I have following queries.
I want to know how can I check the same online?Still I cannot see any new account created.
Also please let me know can I transfer funds from that account to own accounts or other accounts online in case of urgency?as we have option to withdraw anytime the all amount from ATM.
If I withdraw my MOD will continue or will be closed?
Thanks in advance

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340 Manish Chauhan September 18, 2012 at 10:04 am

It will still continue if you withdraw more money in emergency ! .. For more details , better read all the comments , its already discussed somewhere or just start a new thread on our forum – http://www.jagoinvestor.com/forum/

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341 Abhijit September 18, 2012 at 10:40 am
342 Subhash November 21, 2012 at 3:41 pm

Sir,
My Saving Bank Account No. 30446182309 present in SBI, Kathghat, District Moradabad (UP). It is therefore refquested to provide Auto Sweep facility of my account please.

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343 Manish Chauhan November 25, 2012 at 11:48 am

How can we help you , we are not the bank !

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344 SujabB November 27, 2012 at 1:38 pm

Thanks Manish for this great article.
I had my SBI savings account converted to “saving plus account”, back in 2009. My experience with the facility was quite good as I generally deposit in the account, and withdrawals were few and far between and through cheques.
Problem starts from Feb 2012, when the auto sweep stops suddenly without any notification. I did not tried much to restart it, as I can create FDs through net banking. But recently when I made a written request to break the linked FD accounts the problem resurfaced. The bank officials are saying that, they are trying to resolve it and have sent the matter to “data center”, but were unable to provide any timeline.

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345 Kiran November 30, 2012 at 11:04 am

open a ppf acount

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346 Manish Chauhan November 30, 2012 at 1:02 pm

Ask them a deadline after which complain to banking ombudsman !

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347 BKM May 13, 2013 at 11:08 pm

@SujabB

The timeline and experience you shared exactly matching with mine.My branch also not able to restart it.But they will not accept that it is their fault.They repeatedly asked me for address proof showing ridicules theory that if KYC is not proper auto sweep not possible.Even after multiple times of submitting the document they could not start it.Every time I visit they will make storm with keyboard and tell from next threshold date it must happen. As usual one month will pass with no result. By this way one year is gone.One of my co-worker complained it from SBI site. After one month SBI closed the complain without resolving it.
I asksed PNB & BOB for opening auto-sweep accounts but they says that they have discontinued those type of account. Only ICICI and HDFC can open this kind of account but with TnC way impractical.

With this experience I am getting a signal that banks are intentionally discouraging autosweep in non transparent way.If it is their policy they should disclose it also.

Requesting Mr. Manish Chauhan to please investigate and update this topic if required.

Thanks

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348 CHAMPA JOSHI November 30, 2012 at 11:55 am

Sir,
My Saving Bank Account No. 30840499305 present in SBI, Lohaghat, District Champawat (Uttrakhand). It is therefore requested to provide Auto Sweep facility of my account please.

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349 Manish Chauhan November 30, 2012 at 12:03 pm

You have confused us with SBI bank I guess , we are not bank :)

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350 Satya March 21, 2013 at 12:02 pm

And you should not disclose your Account Id like this publicly.

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351 Shreyas December 12, 2012 at 2:15 pm

How do i make an accounting for Auto sweep transaction in my books.?
pls suggest some guidelines
thanks in advance

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352 Manish Chauhan December 19, 2012 at 4:35 pm

Yes that will be a little tough , just track your monthly statements !

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353 nikhil January 8, 2013 at 12:16 am

I want to start this facility for my PNB acount . I checked this link
( https://www.pnbindia.in/en/ui/PNBPrudentSweep.aspx ) for information but couln’t get it. Can you please explain by an easy example. your help would be greatly appreciated :)

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354 Manish Chauhan January 8, 2013 at 9:14 am

What point are you not getting there ? I think its clearly said that above 40k , it will be converted into FD’s .

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355 Pintu Francis January 14, 2013 at 2:51 pm

Thanks very much for this informative note.
I was searching to know about the SBI Savings Plus account and i found this very useful.
I have a doubt.
I have started a SBI Savings Plus Acc.(Salary Acc.) and set the threshold to Rs.15,000. and sweep time as 10th of every month.
My question is that, When will the bank calculate the surplus amount that is to be tranfered to FD? As soon as I deposit more money than threshhold limit (in my case money above Rs.15,000) or only at the auto sweep date(10th of every month).
What is the significance of this auto sweep time?

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356 Manish Chauhan January 14, 2013 at 4:48 pm

I think it will happen as soon as your balance goes up ..

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357 Pintu Francis January 14, 2013 at 9:16 pm

So is there any importance in the sweep date??
It is asked in the account registration form rite?

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358 Manish Chauhan January 18, 2013 at 5:02 pm

It might be the date when the actual creation of FD happens

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359 bhanukiran February 28, 2013 at 3:06 pm

It happens on sweep date.. not when balance goes above threshold

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360 Pinaki May 22, 2013 at 4:12 pm

In your case the money will be swiped 10th of every month at 24:00 hrs.

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361 swathi bomma February 21, 2013 at 3:04 pm

How can i set threshold amount and sweep date in SBI.
kindly please say the steps.
Thanks!

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362 Manish Chauhan February 25, 2013 at 6:30 pm

Not sure of the exact steps. did you find it in internet banking or not ?

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363 Swathi Bomma February 25, 2013 at 6:36 pm

no i dint find it.
i need to set the threshold amount and date.
Please can you say how should i do it?

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364 Nanda April 10, 2013 at 10:59 pm

Hi Swati… Did u find out the solution for this??…
I am also waiting for the answer…
Kindly lemme know if u know the steps for setting threshold limit
Thanks a lot

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365 Sachin April 6, 2013 at 4:35 pm

Hi Manish,
Nice article. Auto Sweep-in is an excellent service , I was not aware of it.
Thank a ton for this post. I have a question here…

Can an EMI payment(through ECS) can auto reverse the amount from FD or the emi payment will be dishonoured due to insufficent balance?

Thanks,
Sachin

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366 Manish Chauhan April 12, 2013 at 12:52 pm

I am not very sure on that Sachin.. you will have to enquire this from bank itself .

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367 Rajesh Saini April 25, 2013 at 6:36 am

Auto sweep is a great option to earn more interest . and also thanks for explaining it in a very simple manner

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368 Manish Chauhan April 26, 2013 at 10:57 am

Welcome Rajesh

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369 Pinaki May 22, 2013 at 4:08 pm

@ Nanda & Swathi
You can not do it with internet banking.You must visit your home branch and ask for auto sweep application form.In that form those two data is to be filled up.You have to submit it to that branch.

Thanks
Pinaki

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370 pratap kumar mohanty June 16, 2013 at 2:13 pm

Is there any restriction for a minimum balance one must have before opting for auto sweep? If so what is the minimum amount? During this transaction what amount would be showing in SB pass book when I am having total balance of Rs.80000/= and leaving Rs.5000/= rest I opted for auto sweep.

Pratap

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371 Manish Chauhan June 22, 2013 at 9:50 am

It can be told to you by your bank only. different banks have different limit

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372 Raghunath Rajendran June 17, 2013 at 9:43 am

Hi Manish,

Your article was simply written for something which all bank account holders should be aware of. I came here as I was looking for more info on how this works… {you know the lack of trust when something seems simple.. you wonder how the bank makes money on it… hence the lack of full trust :) }

So, I thought I will add another question to this, as I couldnt find it in the comments too…

Scenario….
I keep Rs 1 lac in my Savings account, which another Rs 1 lac is in ‘sweep-in’ FD of HDFC … 6 months latest, I withdraw 1.5 lac from my savings, so Rs 50000 gets ‘swept-in’ and now I am left with Rs 50000 in my FD… As I understand, Rs 50000 (remaining) earns a full FD interest (say 8%). While the other Rs 50000 (withdrawn in 6 months) earns me either (a) no interest , or (b) savings account interest, or (c) FD interest rate
.. I am keeping the case of the penalty charges separate.. but if we include that in the scenario also, how will this plan out?….

Note – I am thinking of the Sweep-in facility, but I know I will have complications in opening it up through netbanking, coz my account is held jointly. Till then, the clarifications will help.

Looking forward to the clarification….

Raghu

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373 Manish Chauhan June 22, 2013 at 9:47 am

Hi Raghunath

This needs discussion , please open a thread on our forum – http://www.jagoinvestor.com/forum/

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374 Surya June 26, 2013 at 12:30 am

Hi Manish, It was nice article. I am using this facility and earning interest so need to pay tax also, so I searched many places that how should we pay tax on below case.
I have salary account and after threshold limit all amounts are going into auto sweep FD. So whenever I am withdrawing amount more than threshold amount then by default my Auto sweep FD is getting break and then I am getting interest for the days money held at bank(with penalty) and even they are deducting 10% TDS also.
Now here is my query I have to pay the remaining 20.9% tax (I am in 30% bracket). But from April to Jun suppose I get only 4000 interest then do I need to pay any advance tax on 15th July and if yes then how much? Should I pay advance tax for projected interest (assume 20k) for financial year or only for 4000/-

Thanks in advance

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375 Manish Chauhan July 1, 2013 at 4:45 pm

Surya

You should open a thread to discuss here – http://www.jagoinvestor.com/forum/

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376 Mahender July 1, 2013 at 3:41 pm

Autosweep scheme is a very good scheme

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377 Bala July 12, 2013 at 1:07 pm

Hi,

how to transfer money from the sweep account to my savings account.. i want to pay online bill.. so i need more money than i have in my savings account.. in this case how we can use sweep amount..

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378 Manish Chauhan July 15, 2013 at 1:24 pm

You will have to break your FD in that case !

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379 Amit July 13, 2013 at 1:05 am

Hi Manish,
your explanation gave me a very good idead about mod balance and saving plus account but i have one issue to discuss
i have opened a saving plus acccount last month with 75k, now its having 50k, with mod balance showing 50k, now i have deposited 20 thousand into my saving account but it is not seeping to FD as my thresold amout is 5k only as they said when saving plus account opend.
does it takes time to seep to FD from saving or i need to ask to customer care?

thanks

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380 Manish Chauhan July 15, 2013 at 12:23 pm

Hi Amit

this is very much an issue which only bank can explain . Kindly meet someone in bank and tell them you need answer else you will move to banking ombudsman

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381 rohit kumar August 9, 2013 at 12:42 pm

i have a/c in sbi and want to start this scheme.for this i need other new a/c or this facility can be start in old a/c?????

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382 Manish Chauhan August 12, 2013 at 2:43 pm

It can be started in same account. BUt before anything, check is SBI has this !

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383 Manisha August 26, 2013 at 5:30 pm

Hi Manish,

I have SBI saving+ a/c and my auto swap has happen exactly 23months back. Now, I have withdrew all my money after 23 months.
Bank has calculated interest of 8.5% for 1st year and the same has been credited to my account after completion of 1 year, however the rest of 11 month the interest paid was only 5.5%.
I think I have been cheated by this saving+ ka thing…because my money was there all 23 months with the bank and I should have been paid interest of 8.5% for entire 23 months ..what is your opinion on this?
Thank You..

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384 Manish Chauhan August 29, 2013 at 10:56 am

Can you check if this was a yearly FD which gets auto renewed ? Because if thats the case, then for next year it was not FULL year. Check for the explaination by bank on this !

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385 Manisha August 29, 2013 at 3:07 pm

Thank you Manish for prompt response…

Yes, It was yearly FD which got auto renewed last time once the previous year was completed. Now, I understand why it was not considered as full year. But I wondering how this has happened because I have not given any guideline or instruction of one year FD.
But definitely, I will check this with the SBI home branch .

Thank you for help..
Manisha

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386 Manish Chauhan August 29, 2013 at 3:42 pm

It mush be DEFAULT :)

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387 Sathish August 29, 2013 at 1:40 pm

Hi Manish,

That was again a neat and detail post by you.
I would like to open savings account in Yes bank and get a sweep-in option attached to it. How exactly my sweep in option works if i give threshold limit of 1 lakh, consider i am having 2 lakh in my account (above 1 lakh, they are giving 7% interest).
i am little bit confused as to opt for sweep in to get 7% interest (min) or to park my amount in savings bank itself to get 7% interest (guar)??
please guide me in this context.

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388 Manish Chauhan August 29, 2013 at 1:44 pm

In case of YES bank , anyways you get 7% interest I believe ?

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389 Sathish August 29, 2013 at 10:06 pm

So in this case, bank savings interest is best when compare to sweep in option correct Manish??

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390 Manish Chauhan September 3, 2013 at 2:32 pm

Yes, it might be a little less, but worth!

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391 sujata August 30, 2013 at 10:04 am

Really these are valuable information for common people. Many persons are not aware of these type of information.

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392 Manish Chauhan September 3, 2013 at 2:20 pm

Thanks

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393 Anurag Batra September 25, 2013 at 4:39 pm

Very informative article.

I am unable to find details about it after logging in to my icici personal account.
Anyone with an acc in ICICI pls tell me the path for available options for autosweep.

rgds,
Anurag.

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394 Manish Chauhan September 30, 2013 at 9:43 am

Talk to customer care on this

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395 Pawan Shah September 27, 2013 at 12:45 pm

Hi,
Lets take a example : I have 50,000 and the threshold limit i have given is Rs 10000, now the remaining 40000 will be treated as FD. Now will i continue to get interest of savings account of Rs 10000 and suppose 1 day i require Rs 45000 then as said the FD will not be applicable so after that will i continue to get interest rate of saving account or not.
Regards,
Pawan Kumar Shah

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396 Manish Chauhan September 30, 2013 at 9:07 am

You will get FD rates for the time its created as FD and when it gets broken, it will get Savnig rate

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397 Pawan Shah October 1, 2013 at 1:12 pm

Hi,

Do MOD scheme is only applicable to Salary Account Holder in SBI. Cant it be open by Saving Bank Holder

Regards,
Pawan

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398 Manish Chauhan October 7, 2013 at 8:23 am

YEs, you can open it

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399 Hansraj Deshkar October 3, 2013 at 3:20 pm

If I had 3-4 FDs in form of MOD, and I withdraw some amount then which FD will break ?? The first one or the last one ?? as already the amount of interest accumulated in the first one is higher….

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400 Manish Chauhan October 7, 2013 at 8:01 am

It should be first one logically

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401 Ganesh October 4, 2013 at 6:58 pm

Hi Manish,
Thanks for this info.

Unknowingly I had enabled this option while opening my SBI account. I was shocked to see my balance suddenly going away and that’s how I reached this blog (Thank you so much for helping people).

But seems now I cannot move the fund back in my regular account via netbanking (in case I require to transfer an amount online to somebody from my SBI account). I raised a ticket with SBI and they are asking to contact local branch!

My questions:
1). Can I move back the fund online back to my regular account? (The e-FD options says there are no FDs for premature closure).

2). If I issue a cheque to someone will the bank be paying the amount (from my total actual deposited fund)?

Thanks in advance…..

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402 Manish Chauhan October 7, 2013 at 7:49 am

I think you cant break it online (only offline) , but if you issue a cheque or want to withdraw the money through ATM, then its possible .

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403 Ganesh October 7, 2013 at 3:27 pm

Thanks Manish :)

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404 Sajan October 7, 2013 at 6:31 pm

So what is the banks profit in this ?

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405 Manish Chauhan October 18, 2013 at 11:25 pm

They get FD ! . they can use the money to lend others .You need to understand how banking works !

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406 samrat October 30, 2013 at 11:29 am

sir,
i want to know that any demerit or problem will occur during withdraw and once we withdraw all amt. then again when we deposit it then auto sweep will active automatically or not…..!!!!!!!!!!

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407 Manish Chauhan November 4, 2013 at 11:01 am

Yes, it will get created again even if you have withdrawan it once !

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408 Dibya November 4, 2013 at 1:02 pm

Hi Manish,

Thanks for this blog… a really helpful one for me. I have converted my main savings a/c to an auto-sweep a/c after reading your blog. Can you clarify me the following please:
1. I have set a threshold limit of 10,000/-. My savings balance is now Rs 5000/-, and the sweep-in a/c has balance of about 50,000/-. Now if I withdraw Rs 15,000/- then my savings a/c balance will be 0/- and the Fixed-deposit a/c will be debited by Rs. 10,000/-. So will the remaining 40,000/- in FD a/c, go on earning interest at the FD interest rate?
2. Will my savings balance increase in future? If so, how?

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409 Manish Chauhan November 12, 2013 at 9:25 pm

Yes, in most of the cases this is what happens . 40k deposit will again be there and earn FD interest , but you have to enquire at bank level how they handle it .

Note that all banks deal with this concept differently at minor level

Manish

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410 Dibya November 13, 2013 at 3:47 pm

Thanks for ur reply. Thanks a lot. Well, should I treat my mod a/c as an investment in FD / or it’s a basic misconception?
The auto-sweep a/c interest will not enjoy 80TTA Tax benefit, whereas, to get benefit under that section, interest rate will be much less [S/b a/c rate ~4% in SBI]. So how should I make the trade-off during threshold value decision?

Well, I want to invest for wealth creation. Pls let me know what should I consider, and how can I build up a good investment portfolio with minimum risk factor.

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411 Manish Chauhan November 14, 2013 at 2:41 pm

Yes its true that you will not be able to get the exemption , but then even with tax your returns would be close to 6.5% in the FD

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412 Dibya November 15, 2013 at 11:29 am

Thanks Manish! Your suggestions and way of speaking is superb!

I want a chat session with you, so that I can ask you regarding how should I build my investment portfolio. Please let me know how and when can we chat.

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413 Vishal Thakur December 28, 2013 at 8:06 pm

How can I set threshold limit using SBI Internet banking ??

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414 ASHOK December 29, 2013 at 3:08 pm

HI,

I do not know how to set the threshold in SBI. I tried to make Multi Option Deposit Scheme in SBI and it is asking amount..I thought it is thresold, but after making the deposit, it is showing as Principal amount. Whereas i have more than 80k in my SB account.
So, please guide me how to set the thresold in SBI..

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415 Manish Chauhan January 4, 2014 at 12:26 pm

Hi Ashok

I am not having SBI account, better put this query on our forum so that other SBI account holders can help you – http://www.jagoinvestor.com/forum

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416 Manish January 9, 2014 at 9:30 am

Hi,
Yes bank has enabled sweep in facilty on FD. Like if one does an FD for 2 years for 2 lakhs and after 1 year is in need of 50K. So sweep in facilty can be enabled online on FD and 50K can be withdrawn from it (Interest on 50K will be for 1 year and 1.5lakh will remain in fd). This could also act as a emergency fund as in 5-10 mins i was able to withdraw money from my fixed deposit.

Does any other bank gives this sweep in on FD?

Which one is more beneficial opening a saving account and enabling auto sweep or opening a FD and going for sweep in case of emergency ?

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417 Manish Chauhan January 9, 2014 at 11:21 am

Hi Manish

If YES BANK has this facitlity ,then I think its a good idea to open a FD and enable Sweep in with that, Note that consider this as your emergency fund only :)

Manish

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418 Prerna January 22, 2014 at 3:21 pm

If i have opened a RD in my account, apart from the sweep facility turned on, and there is a standing instruction for RD, but there is not enough money in my account. Will the money be reverse sweeped into my account so that the RD premium can be paid? How does SBI handle this?

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419 Manish Chauhan January 30, 2014 at 7:30 pm

I am not sure on this , its very specific query for SBI .. Better ask it at their customer care !

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420 Abinaya January 23, 2014 at 6:38 pm

Hi Manish,

I went to deposit some money in SBI and the manager who works there suggested to convert it into savings plus account and he did all the formalities. While noticing the procedures he did I found he added two threshold limit, one for Rs 5000 and the other for Rs 1000000. Please clarify as to why there was two threshold limit if you have any idea about it.

And also I told him that all the money I deposit in this savings account is from my salary and I have TDS at office, so I don’t want any tax to be deducted. The manager gave me FORM 15-G and asked me to fill and give once the savings plus account is activated(he said if I fill that form and give they will not take any tax and just see if we pay the taxes from our PAN number) he suggested me to submit the FORM 15-G. This form should be submitted every year April 1st week to avoid tax deduction it seems.

Great work done by you in educating people about financial planning!….

Thanks,
Abinaya

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421 Manish Chauhan January 30, 2014 at 7:06 pm

Thanks for sharing that. Yes now no tax will be deducted directly from bank account.

I have no idea on those two numbers filled by him at this moment, its good to get it clarified it from him itself !

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422 ASA January 28, 2014 at 1:05 pm

Iam able to withdraw money gone into auto sweep account through ATM. But when i want to do internet transaction /payments etc the money in auto sweep account is not available so i can’t make payment more than that is available in the savings account, even though i have balance kept in auto sweep account. How this issue can be solved?

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423 Manish Chauhan January 30, 2014 at 5:23 pm

I dont think that will work . You can only withdraw from ATM for this bank of yours . Can you check with bank on this

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424 Sumit Desai March 1, 2014 at 4:33 pm

I recently had a shocking experience with SBI Saving plus account. A fixed deposit of some initial amount(I don’t remember what was the exact amount) was auto-generated in my saving plus account. I kept on withdrawing money from it. It’s maturity was on today , 1st March, 2014. The amount remaining in this FD was Rs 1000 and the interest which I was going to get was Rs. 90. But, after the expiry, only Rs 792 were credited to my main account. It is showing Rs 382 as the tax deduction. I saw it through internet banking under Closed accounts section. I don’t understand how can tax of Rs 382 can be deducted on Rs 90 interest?
I live in a different city from the one I am having this account in. So, I can’t go and ask about it in the branch. Can anybody explain what might be the reason behind this deduction?

Thanks,
Sumit

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425 Manish Chauhan March 2, 2014 at 6:17 pm

Yes, this is weird . its not right to comment on this without knowing more details. Its best to talk to customer care on this and talk to them about the reason. Let us know what they say ?

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426 Ramesh March 1, 2014 at 9:29 pm

Hi,
Its the first experience with saving plus account in sbi, with min threshold of 5k.
I had 35k in my account on 28 feb.
But today on 1 mar 14, it is main bal INR 5598. and i get MOD balance of INR 30k.
I am looking for the following answers in context of SBI bank.

1. with main Bal 5598, MOD bal 30k. If i deposit 4k. Will this be credited into MOD or main bal?

2. with main bal 5598, MOD bal 30k. If i withdraw 4k, will this be debited from MOD or from main bal? If from MOD, then oldest FD(of 10k as mentioned in sbi website) will be broken OR the latest multiple FDs (of 1k as mentioned in sbi website) will be broken?

3. with main bal 5598, MOD bal 30k. If i withdraw 10k, Which FD will be broken? latest one or oldest one? If there is any penalty for it (as withdraw > 5k). If so what is the panalty?

4. with main bal 5598, MOD bal 30k, if i withdraw 33k, What will happen to my account? what will be main bal and MOD bal? Will there be any panalty? If so what will be the panalty and for how much period? How much period will be given to me for deposit more than 5k and avoid any further panalties?

Thanking you.
Waiting for your answers on mail or here.

Ramesh

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427 Manish Chauhan March 2, 2014 at 6:07 pm

Hi Ramesh

Please ask this on our forum http://www.jagoinvestor.com/forum

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428 subhanka78 March 25, 2014 at 7:12 pm

I have applied for SBI MOD at branch on 24/03/2014 but till now i cant see any MOD balance on account statement page online . I set threshold limit 5k and my current Saving account balance is 23K.

please help regarding this issue.

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429 subhanka78 March 25, 2014 at 7:15 pm

but my account description changed from SBCHQ-SBP-GEN-PUB-IND-NONRURAL-INR to SBCHQ-SBP-GEN-PUB-IND-ALL-INR but mod balance is 0.

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430 Manish Chauhan March 26, 2014 at 12:03 pm

BEtter open a question thread on our forum – http://www.jagoinvestor.com/forum

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431 subhanka78 March 26, 2014 at 7:05 pm

Actually my bank took 36hrs to convert a/c into mod , now i can see my mod balance.

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432 prasanth April 3, 2014 at 11:27 pm

Lets say , I opened a MOD (100000/-)in SBI on Jan 1 , 2013 for 1 year.

I withdrawn 50000/- on 28 of march 2013(after 3 months).

I withdrawn 30000/- on 30 of june 2013(after 6 months).

I widhrawn 20000/- on 30 of september 2013(after 9 months).

Amount in first 3 month , 100000/-
Amount in 4-6 months, 50000/-
Amount in 7-9 months,20000/-
Amount in 10-12 months,0/-

How will they calculate interest for this premature MOD?

When will the interest credited back to my Savings account(only after one year from the date of joing or after 9 months or after each transaction from MOD account)?

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433 Manish Chauhan April 10, 2014 at 2:08 pm

Hi Prashanth

This question is for our forum http://www.jagoinvestor.com/forum

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434 prasanthv April 10, 2014 at 3:03 pm

done.

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435 sandeep kumar jain April 25, 2014 at 2:48 pm

I already have a saving bank account with HDFC Bank. Can I take the facility of auto sweep with my existing account or I would need to open a fresh account.

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436 Manish Chauhan April 29, 2014 at 9:35 pm

Yes you can, contact HDFC bank and talk on this .

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437 Bala July 3, 2014 at 6:36 pm

I want to activate that to my existing account. I want to know what if the total amount above threshold level is with drawn after 2 months. Will the interest credited?
What are the charges for Sbi for mod, if any.

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438 Manish Chauhan July 3, 2014 at 9:27 pm

Hi Bala

There are few things, which you can get info about only from the customer care of SBI

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439 Gokul August 13, 2014 at 7:26 pm

Very Informative Article. Good Work. Thanks !

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440 Kshitij August 28, 2014 at 9:36 am

@Marshal/Manish,

I have recently converted my SBI account to SBPlus, now every Wednesday, They will sweep excess amount,

Now problem is in internet banking under deposit accounts i can see only first two SWEEP DEPOSIT Accounts, Although i have total 4 Sweep deposit a/c s now, Visited several times to branch but seems they are not able to help.

Was this the same case with you, if yes any settings in onlinesbi which hides it ?
*In main SB account i can see total MOD balance but not separate SWEEP ac/s

Please help.

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441 Manish Chauhan September 20, 2014 at 4:21 pm

As its with SBI , you can take help of RTI !

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442 Pravin Praksah September 29, 2014 at 3:40 pm

Hello,

Very knowledgeable information
I want to active sweep in facility in CANARA BANK. How this possible. I contact to bank but bank not provide me satisfactory solution.

Regards,
Pravin

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443 Manish Chauhan October 16, 2014 at 5:45 pm

Use RTI and ask this question !

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