Auto Sweep In

2 Answers

1. 
   

   
   

   ashal jauhari on Feb 10, 2012 Log in to Reply

   Dear Sadanand, What more info do you want for this facility? By the way as you are already an HDFC Bank customer, why are you not asking the question to HDFC Bank itself.

   May I know, what initial info do you have for these sweeping accounts?

   Thanks

   Ashal

   0 Votes 0 Votes  0 Votes

2. 
   

   
   

   BanyanFA on Feb 10, 2012 Log in to Reply

   Sadanand,
   Sweep in facilities offered by banks are automatic way of booking Fixed Deposits from your idle funds lying in your bank account above a certain amount. For example if you have Rs. 100,000 lac in your account and the threshold is 25,000, the bank shall book FD of Rs. 75,000 automatically. After sweep in, your position would look like:
   Saving Account balance : Rs. 25,000
   FD balance : 75,000

   If your saving account balance becomes 0, then the bank shall liquidate automatically from your FD into your saving account. This is called Sweep Out. This results in providing your FD rates on your idle funds.
   Banks generally don’t charge any thing for sweep in facility. If your balance drops

   However a few points you may want to consider:
   1.Some banks do provide just Sweep in and not Sweep Out facility. This means that though your FD shall get made, but to liquidate your FD you may have to go to the bank. Check with HDFC if they shall automatically do the Sweep in & Sweep out;
   2. I don’t know what is the current Saving bank rate provided by HDFC Bank. They were earlier providing 4%. If this rate has increased to 6% (like Kotak Bank or Yes Bank), then it may not make sense to go for Sweep In.
   3. You may want to consider parking your idle funds into Liquid Mutual Funds. They are safe and serve the same purpose of Sweep In.

   Regards
   BFA

   0 Votes 0 Votes  0 Votes