The Sweep-in Facility from HDFC Bank provides us a high interest rate similar to Fixed Deposit in our Savings Account. Savings Accounts give us a flexible banking experience where we can withdraw or deposit money at any time; unlike Fixed Deposits that do not provide such fluidity to its holders.
A customer is liable to select the deposits they want to link with their Savings or Current account. With this facility, there will not be any cheque bounce cases during situations of insufficient funds, the bank breaks the units of deposit to complete the transaction.
The Sweep-in Facility functions as a group deposit each holding Re.1. In conditions of low funds, term deposits will eventually be terminated by the bank to justify the complete transactions. The bank will also break the deposit and make instant cash available through ATMs if the customer deems for funds more than what exists in their account.
Suppose that a customer has Rs.5,000 in his/her account but he/she has given a cheque to a creditor of Rs.7,000. The cheque is to be transacted immediately by the creditor but the customer has no time to go deposit money in their account.
In this situation,the bank will break the FD up to 2,000 Rupees and allow the clearance of the cheque to avoid an unpleasant case of check bounce.
The Sweep-in Facility by HDFC Bank is accessible to:
Type of Account
The facility is inaccessible for FDs having a value of more than 1 crore rupees
Selected accounts will have service charges accordingly. The cutomer has to mainted the minimum balance regardless of the FD value.
The customer can avail this facility whenever he/she wants and opt out through getting in touch with the bank branch.
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