How to Avail of the Sweep-Out Facility to your Best Advantage for you Savings Account?

The Sweep-Out Facility, also known as the MoneyMaximizer facility, is a valuable feature designed to optimize the returns on surplus funds in your Savings Account. This facility allows you to convert excess balance into a Fixed Deposit (FD) with higher interest rates, while still retaining the flexibility of a Savings Account. This article explores how the Sweep-Out Facility works, the types of accounts that offer this feature, and its benefits.

The Sweep-Out Facility is a mechanism that automatically transfers surplus funds from your Savings Account into a Fixed Deposit. This ensures that any amount exceeding a specified threshold is moved to a higher interest-bearing FD, enhancing your overall earnings. The facility provides a seamless way to manage your finances by combining the benefits of a Savings Account with those of a Fixed Deposit.

Accounts Offering the Sweep-Out Facility

The Sweep-Out Facility is available with several HDFC Bank Savings Accounts, each with its own parameters:

1. SavingsMax Account

• Insurance Cover: Offers insurance cover up to Rs 3.29 crore.

• Sweep-Out Threshold: When the balance exceeds Rs 1,25,000, amounts over Rs 1,00,000 are swept into an FD.

• FD Limits: Minimum FD amount is Rs 25,000; maximum is Rs 14,99,999.

2. Women’s Savings Account

• Special Benefits: Includes preferential loan pricing, cashback on shopping, and free insurance cover.

• Sweep-Out Threshold: When the balance exceeds Rs 1,00,000, amounts over Rs 75,000 are swept into an FD.

• FD Limits: Minimum FD amount is Rs 25,000; maximum is Rs 14,99,999.

3. Kids Advantage Account

• Educational Tool: Provides a debit/ATM card for children to help teach money management.

• Sweep-Out Threshold: When the balance exceeds Rs 35,000, amounts over Rs 25,000 are swept into an FD.

• FD Limits: Minimum FD amount is Rs 10,000; maximum is Rs 14,99,999.

Benefits of the Sweep-Out Facility

1. Maximize Your Earnings

• Higher Returns: Funds in a Savings Account earn a modest interest rate. By using the Sweep-Out Facility, excess money is converted into a Fixed Deposit, which offers a higher interest rate, thereby maximizing your earnings potential.

2. Automated Fixed Deposit Booking

• Convenience: Traditionally, booking an FD requires online applications or bank visits. The Sweep-Out Facility automates this process, transferring surplus funds into an FD without requiring manual intervention. This feature simplifies financial management and eliminates the need for additional paperwork.

3. Effortless Management

• Seamless Integration: Once you set up a Savings Account with the Sweep-Out Facility, HDFC Bank handles the automation of FD bookings. This allows you to earn higher interest without actively managing the process, making it an efficient solution for busy individuals.
   

The Sweep-Out Facility offered by HDFC Bank is a powerful tool for optimizing returns on your surplus funds. By automatically transferring excess balances into Fixed Deposits, this facility helps you earn higher interest while maintaining the flexibility of a Savings Account. Whether you have a SavingsMax Account, a Women’s Savings Account, or a Kids Advantage Account, the Sweep-Out Facility provides a convenient and profitable way to manage your finances.

To open a Savings Account, click here to get started.

Know more about the MoneyMaximiser Facility and its benefits, click here to read more!

*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.