how advantageous is sweep-in fixed deposit?

POSTED BY PK ON February 2, 2011 11:00 pm COMMENTS (4)

I have recently heard of the Sweep-in facility in FDs. It looks really a good option.

Are there any disadvantages of this option over regular FD. 

If not, then I can always put the additional money I have into a FD with sweep in facility.

That way I get interest rates over 8% instead of 3.5% in Savings account.

Please share your thoughts on this.

Thanks.

 

 

4 replies on this article “how advantageous is sweep-in fixed deposit?”

  1. Irshad says:

    I want to know about HDFC Sweep-In Account and advantages of this account over opening FD saparetly and keeping S/A account as it is.
    – Are there any differance in interest rates of Sweep-in a/c?
    – Are there any charges on operating this account?
    – Are there any penalty on premature liquidation on FD part?

    what is HDFC SuperSaver a/c?

    ps: i am trying to get info on this and will update if i come to know about it.

    Thanks,
    Irshad

    1. sakthivel says:

      HI,
      HDFC SuperSaver Account is SB accounts where you need to maintain min bal of 25K. Once the account reached the maximum value of 1L-1.25L, the excess amount more than 1L will get converted into FD where you will get 8%-8.35% on interest for short span of time (1yr). You can increase the FD maturity time, liquidate the FD in case of urgent need of money, or sweep-in the Principal amount to the SB account.

  2. bharat shah says:

    only becareful to not be over enthuistic for transfering from sb to sweep in fd, otherwise for shorter period , may month or so fd rate may be less than that for sb a/c i.e. less than 3.5%

  3. Rajendran says:

    I don’t see any disadvantage in sweep in FD compared to ordinary FD. Just go for it… and earn more for your money

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