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Top features of Sweep-In Facility for FD
Earn HIGH-interest rates on Fixed Deposits
Link multiple deposits to your Savings or Current Account
Helps in meeting liquidity requirements while the Fixed Deposit continues
About Sweep In Facility for FD
Given the changing scenario, many people and businesses are finding themselves in a situation where they face a shortage of funds. Our Fixed Deposit Sweep-In Facility helps you overcome the hassle of paying the overdraft amount or the embarrassment of a bounced cheque.
The Sweep-In Facility links your Savings or Current Account with a Fixed Deposit without any trouble. While it essentially functions as a Fixed Deposit, it can also be used in times of need without the hassle of breaking the full Fixed Deposit and losing out on interest.
Features of Sweep-In Facility
- Withdrawal as per your requirement: Only the amount required in the deficit is swept into the active account without breaking the entire Fixed Deposit.
- Auto instruction: No need for additional instructions; once the facility is set up, it works on its own.
- No additional fees: You don’t have to pay any extra costs like overdraft fees if you don’t have enough money in your Savings or Current Account.
Benefits of Sweep-In Facility
- Higher interest rate: Earn higher interest on your money until it is swept into your Current or Savings Account.
- Multiple accounts linking facility: Link multiple Fixed Deposit accounts to your Savings or Current Account with ease.
- Enhanced liquidity: Meet your liquidity requirements for urgent needs such as EMI payments or cheque disbursals. We will transfer or ‘sweep’ funds into your Savings or Current Account to rescue you from any embarrassment or a poor credit score.
How to apply for Sweep-In Facility?
Follow any one of these simple instructions to activate Sweep-In Facility:
- Apply online: Fill up the form online, and a dedicated representative will get in touch with you.
- Visit your branch: Visit your nearest branch for a better understanding and more personalized experience.
Q1. What is a Sweep-In Facility?
In a Sweep-In Facility, the overdraft amount is transferred from the Fixed Deposit account to the active bank account of the customer to process any transaction that is on hold due to insufficient funds.
Q2. How does Sweep-In Facility work?
Let’s assume an active account is linked with a Fixed Deposit of INR 50,000. The active account has INR 24,000 but needs INR 12,000 more to clear a pending transaction of INR 36,000. In this case, the bank will transfer only the required amount of INR 12,000 to the active account so that the transaction is done successfully.
Q3. What are the interest rates on Sweep-In Facility for Fixed Deposit?
The interest rates offered on Fixed Deposits are generally higher than those offered on a Savings Account. Considering the amalgamation of these two essential accounts, the interest earned on Sweep-In Facility will be similar to interest on Fixed Deposits. For more information on interest rates, click here
Q4. Are Sweep-In accounts safe?
Yes, Sweep-In Accounts are absolutely safe. They transfer the money from an internal Fixed Deposit account to an active Savings or Current Account in the same bank, so there is no possibility of a data or confidentiality breach.
Q5. Is a Sweep-In Account a cash equivalent?
Considering that a Savings Account and a Fixed Deposit account are both considered cash equivalent, we can agree that a Sweep-In Facility is a cash equivalent as well. This is because it can be easily converted to cash at any point in the agreed-upon term.