HDFC Bank Sweep out FD

What is HDFC Bank Sweep Out FD Facility?

The HDFC Bank Sweep-Out FD, or MoneyMaximizer, is an auto-sweep feature that automatically transfers balances between your savings and FD accounts. It lets you earn HDFC Bank FD interest rates on idle funds while retaining liquidity. With this single feature, you get the benefits of both: the liquidity of a savings account and the higher returns of a fixed deposit.

Advantages of HDFC Sweep Out FD

HDFC Bank's Sweep-out FD facility has a number of benefits that make it desirable among customers who desire to receive a higher rate of interest on their excess funds without compromising liquidity.

• Maximises Returns: Rather than making the idle money lie in your savings account with a low interest rate, the HDFC sweep-out facility will automatically change the excess to a fixed deposit that will earn a much higher interest rate.
• Automated and Hassle-Free: It is completely automated. There is no need to manually open a new FD or go to a branch when your balance in a savings account reaches some level.
• Guarantees Liquidity: The sweep-out facility is paired with a so-called sweep-in feature. In case your balance in the HDFC Bank savings account falls short of the amount required to effect a transaction, the amount required is automatically re-deposited in the FD.

Eligibility Criteria For HDFC Bank Sweep Out FD

MoneyMaximizer or sweep out facility by HDFC Bank is available on demand with the SavingsMax, Women’s Savings account, and the Kid's Advantage account.

Example of HDFC Bank Sweep Out FD

Assume you are an HDFC Bank SavingsMax Account holder. In case your account balance is ₹1,50,000, then the sum that will be held in your SavingsMax account is ₹1,00,000. The sum that is more than the threshold, that is, ₹50,000, will automatically be booked as a Fixed Deposit. This new FD will be worth a minimum of 25,000 or more.

How to Activate HDFC Bank Sweep-out FD

Online Activation

There is no lengthy process to apply for the HDFC Bank Sweep-out facility. If you have an eligible HDFC savings account and want to activate this facility, follow the given steps -

• Go to the nearest HDFC Bank branch.
• Request the Customer Undertaking to Opt for the Sweep-out Facility form
• Fill out the form completely
• Fill out the form completely with PAN details
• Sign the form and submit it to the bank for processing
• After reviewing, the bank will activate the facility for your account

Offline Activation

• Visit a Branch: Go to your nearest HDFC Bank branch.
• Request the Form: Ask for the MoneyMaximizer (Sweep-out) Facility form. This is the specific document required to activate the feature.
• Fill and Submit: Complete the form with your account details and your PAN number.
• Sign and Process: Sign the form and submit it to a bank official. They will process the request and link the MoneyMaximizer facility to your account.
• Confirmation: Once processed, the sweep-out facility will be automatically triggered every Monday if your account balance falls short of the preset threshold.

Wrapping up

The HDFC Sweep-Out FD automatically moves surplus savings balance into a fixed deposit once a preset threshold is crossed, and the linked sweep-in feature moves funds back to your savings account if your balance falls short for a transaction. Together, they give you the higher returns of a fixed deposit and the liquidity of a savings account, with no manual intervention required. Understanding how sweep-in and sweep-out facilities work across different banks can help ensure your idle funds are always working for you.