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How to use Sweep-in facility in HDFC bank via netbanking?

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In my other post,I explained How you can earn upto 9% on your savings bank account using Auto sweep / sweep-in facility (Read Full Post).

In this post, I have provided step-by-step guide to use the sweep-in facility in your HDFC Bank Account via NetBanking.

HDFC Bank provides this facility to all its customers who have NetBanking facility. (holding pattern should be SINGLE & not Joint).

I have savings account with HDFC bank and it is very simple to use this facility.

Step 1:  Go to “Fixed Deposit” Section – Open Fixed deposit

Enter – Nature of Deposit – Reinvestment of Interest

Step 2:  Activate Sweep-in on this FD

Once the FD is made online, then go to Option – “Fixed Deposit Sweep-in” and enable the Sweep-in on that FD. It will allow sweep-in the amount from this FD to Saving account when the money is withdrawn from that saving account.

and that’s it. 

The only drawback of this method is that you need to open the FD yourself through netbanking (as per Step 1) and not done automatically. If you want to use the “Auto Sweep” facility, where FD is opened automatically above threshold limit, then you need to open HDFC SavingsMax Account.

Feel free to comment or ask or share your experience regarding using sweep-in facility.

If you have any queries related to this article or any other personal finance query ( Investment, Taxation etc), please comment below

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86 comments

  1. Thanks It worked out. i never know this option and ur post educated me. it is really good for emergency.

  2. Thanks for such a beautiful tips to make the higher interest rate using Saving amount in Fixed deposit as temporary.

  3. Hi,

    Just wanted to know the procedure of setting a threshold limit in your salaried account.

    • Hi Sonika, The minimum threshold limit is set by each bank. I think HDFC has minimum limit of Rs 50000 / Rs 1 lac for Auto Sweep in.

      But, you can always make more FD and link it to Sweep in account.

  4. Hi,
    I have savings max account but i dont know how can i check if the amount exceeding Threshold is sweeping out automatically to FD or not. Do we need to wait to get this facility activated bcoz my account is just 15-2- days old. Thanks….

    • Hi Pratima, In which bank do you have the account?
      When you have the banak balance above threshold limit, the amount will automatic transfer to the FD. You can see that in your Bank statement online/post.

      • Hi Vivek,
        My Account is in HDFC. The Amount is already above the threshold limit. I had visited the Bank yesterday. They have taken my request again as sweep in-out was happening on my account. Seems this facility was not activated for my account.. Thanks for your reply.

  5. Hi Vivek,

    I have 2 queries:

    1) What happens to the principle amount in your FD, when you sweep in. For Ex: I have opened FD with Sweep in for Rs. 50,000 and I have used Sweep-in on the FD at some emergency and taken Rs. 20,000 from it. So now does my Principle amount changes to Rs. 30,000? Or does it automatically takes back Rs. 20,000 from the Savings account once the amount is available in it?

    2) There is something called Super-Saver in HDFC netbanking. What is the difference between the normal FD and Super-Saver account?

    Thanks in advance

    • You have 2 options –

      1) Auto Sweep or Super Saver option – where any amount above certain limit (say 1 Lakh) will automatically transferred to FD.
      For e.g If you have Rs 1.50 lakh in Saving , the bank will keep Rs 1 lakh in Saving and rest Rs 50000 will be transferred to FD.
      When you withdraw Rs 20000, your saving balance will become Rs 80000. So bank will reduce your FD by Rs 20000 and transfer to Saving. Your New Saving balance will be Rs 1 lakh and FD balance will be 30000.

      2) Create FD with Sweep out facility.

      Going with same example, if you have Rs 1.5 lakh in Saving. You can make FD of whole Rs 1.50 lakh and then activate Sweep out option.
      When you withdraw Rs 20000 using your card etc., the bank will automatically reduce your FD by Rs 20000 and transfer than amount in your Saving Account. Your new FD balance will be Rs 1.30 lakh.

      2nd option is manual as you need to create FD and activate sweep in by your own. Sweep out is done automatically by Bank in both cases.
      2nd option in beneficial in terms of Interest as you get FD rate even on 1 lakh which is kept in Saving account in Option 1.

      • Great! Thanks for your precise and quick reply!

        I have one more related question with the same example. So I have withdrawn Rs. 20,000 in either of the options, and that 20k is deducted from the FD. Now, if I get my salary in the Savings account, say Rs. 30,000 in my savings account, does the 30k automatically gets Swiped In into my FD in both the cases (Super Saver/FD with Swipe-In activated)??

        • If you get salary of Rs 30000,

          1) In Auto sweep / Super Saver option – the balance above rs 1 lakh will automatic transfer to FD

          2) but in Manual FD with sweep out – it will not be done automatically. You will have to create an FD of Rs 30000 and enable sweep out on that. This can be done via your Net banking & will take 2 mins to do.

          • Dear Vivek,

            A query related to this. You suggested that for salary of Rs 30000 we will have to create a new FD of Rs 30000 and enable sweep in. So in that case what will happen to the earlier FD of Rs. 1.5 lakh. Also, do we have to create a new FD everytime the saving account is credited with money? If yes then wouldn’t we end up with a number of FDs linked to our account. Please suggest.
            Thanks in advance!

          • Hi Neeraj,

            You have 2 options,

            1) Enable Auto sweep-in functionality – in that case, the amount is automatically sweep-out to FD above threshold.
            2) Manual sweep-out – You can manually create FD when you have some amount in Saving and then activate sweep-in on that FD.

            In both cases, there may be number of FD accounts linked to the saving account. That should not be of any concern.

  6. Hi Vivek,

    I have a question, In second case if I open a FD for 100000 and say a sweep out happens for 20K, what would be the future scenario.

    If the FD changes to 80K, will I be charged a Penalty for the withdrawal of 20K
    If I get 30K as my salary will 20k be sweeped back to make it 100000 automatically, if not do I have a option to put it back.
    And what if I had to withdraw the whole deposit for some emergency, is there a penalty for 0 balance in opened FD.

    • Hi Vipin,

      This scenario is when you choose to manually create Sweep in FD (not AutoSweepin). It will have Auto Sweep-out.

      1) If you have FD of Rs 1 lakh, and there is a sweep out of Rs 20K, then you will be paid Interest on Rs 20K (for applicable duration & penalty deduction). You will have remaining FD of Rs 80K continuing.

      2) if you get 30K salary, you can create new FD of 30K & enable auto sweepout option on that via Netbanking.

      3) You can withdraw the amount anytime. There will not be any penalty for ZERO balance in FD account.
      However, you Saving account might require minimum balance.

      • Do you know how much the penalty would be, if we wtihdraw some amount from the FD. I am asking about the manual FD method. Thanks 🙂

        • Hi Kaushal, Normally bank reduce 0.5% – 1% ( as pre mature penalty) from the Interest rate applicable for that period.

          For e.g if 6 month Interes trate is 7% & 1 year interest rate is 9% and if you withdraw money in 7th month, tha bank will pay you the Intererst @ 6.5% ( 7% as rate applicable for 6 monthts & 0.5% pre mature penalty.

  7. hi vivek,

    I have one query where to set this threshold limit for option 1. i prefer option 1 as there will be no hassle to create FD everytime.

    Regards
    Saurabh

    • Hi Saurabh, The threshold limit for option 1 is automatically set by HDFC bank as Rs 1 lakh. (earlier it was Rs 50000). There is no flexibility to choose threshold limit.

      • How to set limit for option 2, i have manually opened FD in HDFC Bank and linked it sweep-in facility with my salary saving account. After what minimum balance in my salary/saving account, my FD will start broken. My Salary Account is zero balance saving account.

  8. Hi Vivek,

    Thanks for your quick reply!!

    Let me say it to you like this.. Suppose my saving account is having 2.5lac of balance so first i have to create an e-FD of any dummy amount ( say 1 lac) then i have to link this FD with my saving account using SuperSaver Facility. Once activated another 50k will auto move to this FD. Am i correct? Next time onwards if any money is coming in this account again automove to this FD.. only keeping 1 lac in saving… Please correct me if i am wrong…

    Also, how this super saver differs from hdfc savings max account.

    Thanks Again!!

    • Hi Saurabh,

      Option 1: You can open a HDFC Savings max account, where any amount above Rs 1 lakh will automatically got o FD. You donot need to do anything.

      Option 2: In your existing Saving account, you can make FD of whatever amount (say in this case, you can make FD of whole 2.5 lakhs) and then activate Sweepin (as shown in step 2 above in post). In future, when you get more money ( e.g. 1 lakh), you can do the same process – create FD of rs 1 lakh & activate sweepin.

  9. Hi Vivek,

    Sorry to trouble you again!! but that didn’t answer my query 🙁 … I understand sweepin well after reading your post.

    My question is what is super saver option do? it looks like a FD only , nothing special..

    Regards

    • Hi Saurabh,

      Super Saver facility is for providing Overdraft against Fixed deposit. It is different from Sweepin-out option.

  10. hi vivek,

    I have taken super-saver for one of my FD. Now , how this overdraft helps me and how this super saver is better than sweep-in?

    Regards
    Saurabh

    • As per earlier reply, super saver is different from Sweep in. Super saver is only used when you need an overdraft. For normal investments, you need to take Sweep-in facility.

  11. I am 17 years old and studying away from home town. I want to open a savings A\c for free money access and financial support away from home. I would like you to suggest which bank facility would be best. I have read your article of Sweep in n out facility, will it work for me…???

  12. Hi Vivek,

    Is it applicable only on FD’s where Nature of Deposit is – “Reinvestment of Interest”, not for “Monthly/Quarterly/Yearly Interests Payout”

  13. Hello sir, I hv question that if I hv 30,000 rs in saving a/c. Can I make e-fd for 30,000 rs. & link it to sweep in facility. thus whether i hv to pay penalty for not maintaining minimum bal in saving a/c 10,000 rs ?

  14. thanx Jain sir for response………
    Sir I hv another question: suppose I hv 25000/- in saving a/c, I make 15000/- FD from 25000/- (bal. in saving: 10000/-) & link it to sweep in. When I need I withdraw 15000/- through ATM. thus saving’s 10000/- + fd’s 5000/- =15000/- will be debit. then what will about the saving a/c balance. how the saving a/c average bal 10000/- will maintain. whether I hav to pay penalty for not maintaining average bal.

    • Hi Sunil,

      If you saving account is set for automatic auto sweep-in/out, then there should not be any penalty levied.

      But if you manually make FD & enable sweep for that FD, then in that case, you need to make sure that average balance in saving account is above minimum required.

  15. very good article. and the comments are very helpful. Please keep such articles coming.

  16. Hi Vivek,

    In HDFC, there is no option to sweep in specific amount in FD, it displays all the amount in savings a/c & sweep in all the amount to FD. Will it be problem or it is ok?

  17. Hi Vivek,

    If I link my saving a/c to sweep in FD, would it be possible to transfer money to others if in case, as i already added them in the benefitiary names ?

  18. Dear Sir

    I have sb account in central bank of India let me know how change my account in sweep account

    • Hi Rakesh, You should check with your nearest Central Bank Branch.
      They have a premium account – ” Cent Premium Savings Account” which has sweep in out facility.
      I am not sure if they offer that in normal saving account or not.

  19. Hi Vivek,
    I can see the following instruction at the site:

    The penalty on premature closure of Fixed Deposits including sweep-in and partial closures has been fixed by the Bank at the rate of 1% except for the FDs booked for the tenor of 7-14 days.

    Could you please explain this with example as it is said in comments that there will be no penalty if whole amount of FD is sweep-in?

    • Hi, As with normal FD pre-mature withdrawal, the applicable interest is paid after deducting the penal interest amount.

      e.g. Suppose the FD interest rate is as follows
      1) FD for 3 months – 7%
      2) FD for 6 months – 7.5%
      3) FD for 12 months – 9%

      So suppose when MOD is created, it is for 1 year and the interest rate applicable will be 9%.
      If the FD amount is withdrawn after 6 months, the applicable interest rate will be 7.5%. The bank will reduce this amount by penal interest (1%) and therefore the Interest paid will be 6.5%

  20. Dear Vivek,

    I had a doubt about Sweep in facility in HDFC bank savings account.

    Say i have Rs. 50,000 in my savings account, i will have to create a Rs. 50,000 FD and link with sweep in facility.

    after that, so the balance shown in my savings account will be Rs. 0 as everything will be in the FD.

    do the debit cards and atm machines work with 0 balance in case i have to withdraw money?

  21. Hi Vivek,

    In my HDFC account, i am already finding a fixed a fixed deposit with sweep-in enabled. Does HDFC create a dummy one for its users ?

    Thanks,
    Remo

    • Hi Renjith,

      Please explain your query. Do you mean that an FD is created in your account and sweep in is enabled on that FD? What id the FD Amount?

  22. I have deposited amount 20000 mistakenly in my HDFC account via ntebanking,How to i get back my money to my account…please help me sir

    • Hi Manoj
      Please explain your query. How can you deposit money via netbanking?
      Have you transferred money from one account to another account via netbanking ?

  23. I have a HDFC Savings Account. I created a FD of 1Lac last month for a period of 3 months. Today i linked that FD to my savings Account through Sweep in facility. The questions i have

    1. Is the Sweep in facility will be applicable only for the period of 3 months.
    2. If i need to extend it should i again create a new FD and link it again

    • If you have created the FD for 3 months only, the sweepin facility for that FD will also be latest of 3 months.
      When you renew FD, it will be new FD account and you will have to activate the sweep-in facility again on that FD.

  24. Hi Vivek,

    I have a HDFC netbanking and want to know more about this sweep in facility.

    If I create an FD of Rs. 1,00,000 for 3 months and link it through sweep in facility, and hold this FD for 3 months. I would be getting higher interest. But suppose I withdraw this FD after 2 months. At what rate I would get interest amount after imposing penalty(if any). Say, interest rate is 6% for 3 months and 5% for 1 month.

  25. Dear Sir.

    I have NRE account in hdfc bank. I want to use sweep in/out facilities. As i am on ship not able to visit bank. I have activated mobile banking and net banking. Pls help me for better option

    Regards
    Mukesh Ray

  26. i have 6000 in my account can i opt for sweep in and out facility???

    • Hi Samrat, You can create FD for that amount and enable sweepin facility.
      However, you will need to maintain the minimum balance in your saving account , otherwise bank may levy charges.

  27. Hi Vivek,
    First thank you, really learnt a lot about this facility through your post.
    Now my queries are, suppose I have 50k in my saving account and minimum average balance to be maintained is 10k. Now I create a FD of 40k and enable manual sweep-in facility.
    1. I withdraw 10k, so from where will it get deducted, from saving balance or from FD through sweep-in?
    2. let’s say it gets deducted from saving account thus the remaining balance is 0 that means penalty will be levied, am I right? then how will this sweep-in facility is beneficial?
    3. Considering the initial scenario, I create the FD of 40k for 12 months with rate 8%, and for 6 months rate is 5%. Now I sweep-in 10k at 7th month. So as per previous comments I will get interest at (5%-1%) 4%, at what amount will this rate be charged? only on the sweep-in amount of 10k or on the whole FD amount?
    Thanks in advance 🙂

    • Hi Praveen,

      1. Yes the Rs 10K will be deducted from the Saving account
      2. If the minimum balance is not maintained, then charges will be levied. Therefore, in case of manual sweep-in creation, it is better to create multiple FD of small amounts. When you withdraw money from Saving, then you can liquidate the FD of similar amount to maintain your Savings Balance.
      3) Yes, the rate given on that Rs 10000 will be 4% (not on whole FD).

  28. Hello Vivek,
    I had balance of rs 8006. I had booked FD of 8000 in hdfc thru netbanking and chose Sweep in option thru netbanking linked with savings account. FD is booked for 50 days.
    My question is will there be any charges incurred by me if i dont disturb both savings account and FD for next 50 days. or is there a facility where i could revoke my sweep in facility. Please let me know

    thanks
    Kumareshan B

    • Hi, the balance in saving should be more than minimum balance otherwise minimum balance charges will be levied.

  29. I have done FD and i dont want to remove it before maturity and keep it renewing automatically , is it useful for me if i go for Sweep in facility

    • In that case, it is better to to create FD (not Sweepin) because everytime the sweepin FD is renewed (every year), the new Interest rate will be applicable.

  30. Hi Vivek,

    I have saving max account in hdfc. I have 1,25000/- in my account which is already above the threshold limits so do I need to activate auto sweep facility or automatically it will get activated?

    Thanks in advance!

    • Hi Ujwala, I think HDFC have increased their threshold limit. If the balance in your SavingsMax Account exceeds/reaches Rs. 1,25,000, the amount in excess of Rs. 1,00,000 will be put in a fixed deposit at a minimum value of Rs. 25,000 for a one year and one day period. So if you have Rs 1.25 lakhs in your account, automatic FD should be created for RS 25000/.

      • Yes right. But how will I know if auto sweep is activated or not. Do I need to activate it or it (amount above the 1 lakh) will automatically put into a FD?

        • Hi Ujwala, This feature is available only with specific type of HDFC account – which is called SavingsMax Account. if you have this account, then this feature is auto enabled.

  31. Hi Vivek.
    How can i make most of the money lying in my HDFC Current Account for staff salary. I have about 25 to 30 days time where the money is lying idle until it is withdrawn for salary disbursement.

    Thanks

  32. Hi vivek
    I want to ask something, I didn’t go through above comments, I open FD ACCOUNT ..and used it “SWEEP IN” … this sweep in account is necessary because? that I can withdrawn money from FD deposit?> right? so what else I got salary in sweep in account.. because FD DEPOSIT OPENED DIFFERENT. so why this “sweep in” linked with saving account? why it doesn’t linked with deposit account? !!
    thanks in advance.
    Please explain with an example with “10k” rs .

  33. Suppose I have a amount of Rs. 150000 and create FD of Rs. 150000 by opting for Create FD with Sweep out facility. if I draw an amount of 40k it will be deducted from savings account with FD deducted to 110000 and penalty calculated for 40k for the remaining duration.
    If I get a salary of 30k each month and I don’t want to create further FD’s (unless and until a large amount is collected) if I want to withdraw a certain amount Rs. 20k the same shall be deducted from the 30K I received or the 110000 pending in the FD.

    • Hi Supriya,

      As you will be creatign FD manually, you can decide when to create a new FD. So when you receive salary monthly, you can withdraw from your saving account. The balance in FD will remain as same. Once you have sizable amount, you can create a new FD with sweep out.

  34. HI Vivek,

    I have a super max account with which has 1.5Lakh , which is above 1 lakh is considered for FD .
    will I get normal interest for the 1L which I maintained in the account?

  35. hi vivek

    Suppose that i have an FD of Rs. 10000 for the period 1 year can i withdraw only 9% interest from my saving account

    • Hi Hardev,
      Please explain your query. When you have FD of 10000 for 1 year, the applicable interest rate wil be credited in yoru account at the time of maturity.

      The rate of interest is now reduced.

  36. Hi Vivek,
    Thanks in Advance.
    I have 2 questions –

    1.Suppose i have 1Lakh in my saving account, out of which i open FD with sweep-in facility of 70k. Now i have 30k in SA and 70k in FD, after few days i withdraw 15k via debit card so it will be deducted from saving account and now my SA balance become 15k. I want to know in this case will 15k deducted from my FD and get added to saving account or it will be as it is 70k and if it is 70k then please tell me the case when it will deduct from FD.

    2.Suppose i have 2 sweep-in FD (1 is of 50k and another is of 1Lakh), my saving account bal is 20k, if i withdraw 30k via debit card then from which FD 10k will get deducted (50k or 1lakh)? (Do not if it is a valid question)

    • Hi Abhishek,

      1) Your savign bal will be 15K & FD balance will be 70K.

      2) the 10K will be deducted from the FD which was created last. (latest FD)

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