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4/21/2016

Auto Sweep Account ­ Enable it in your Saving Bank Account

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Do you have a Bank Account? Off-course you do! How much money do you have in your account? 5,000? 20,000? or a few lacs? If you have a lot of cash, lying idle in your Bank Account, and at the same time you don’t want to commit to long-term investment, you need to enable the Auto-Sweep facility in your Savings Bank account. This will make sure you earn good interest on a major part on the cash lying in your Savings account.

4/21/2016 Auto Sweep Account ­ Enable it in your Saving Bank Account <a href=W elcome, Guest! Sign In | Reg ister HOME SOLUTIONS OLD-ARTICLES BOOK SERVICES SCHOOL CATEGORIES  Search  Auto Sweep Acc ount – Enable it in your Saving Bank Account MANISH CHAUHAN 529 COMMENTS Do you have a Bank Account? Off-cours e you do! How much money do you have in your account? 5,000? 20,000? or a few lacs? If you have a lot o f cash, lying idle in your Bank Account, and at the same time you don’t want to commit to long-term inve stment, you need to enable the Auto-Sweep facility in your Savings Bank account. This will make sure you e arn good interest on a major part on the cash lying in your Savings account. http://www.jagoinvestor.com/2011/03/auto­sweep­bank­account.html 1/34 " id="pdf-obj-0-40" src="pdf-obj-0-40.jpg">

4/21/2016

Auto Sweep Account ­ Enable it in your

Saving Bank Account

What is Auto-Sweep Account ?

“Auto Sweep” is a facility which provides, the combined bene ts of a Savings Bank account and Fixed Deposits. Auto-Sweep facility interlinks your saving bank account with a Deposit account and makes sure any extra amount lying in your bank account above a threshold limit is automatically transferred to Fixed deposits and you earn better interest on your money.

How ‘Auto Sweep’ works?

This is how Auto-Sweep works. You de ne a “threshold limit”, and money up to that limit will be in the form of cash in your savings account and any amount above this, “limit” will automatically be converted into a Fixed Deposit and you will start earning normal FD returns on that part of the money. At any point in time, if you need money more than is lying in your bank account, the money lying in the Fixed Deposits is Reversed-sweeped into your savings account and you can withdraw the amount you wish.

Example

Ajay opens a new Savings Bank account with SBI. He enables Auto-Sweep facility on his savings bank account and de nes the threshold limit of Rs 30,000 . Now suppose he has Rs 10,000 lying in the bank, He will be earning normal 3-3.5% interest on this money. After that if he deposits Rs 60,000 in his account, his total balance would be 70,000. But as this is above his “threshold limit”, the extra amount of 40,000 will be converted into a xed deposit automatically and start earning returns equal to normal Fixed deposits with SBI (for example 8%). This way he always has 30,000 in his account for his daily requirements, and he has 40,000 converted into Fixed deposits which again is available to him incase he requires it.

Now suppose he has to withdraw 10,000 from his account, he will actually withdraw it from the cash lying in saving bank , and his balance will reduce to 20,000. However on the other hand if he wants to withdraw Rs 50,000 . then in that case, as his account balance will be just 30,000, an additional Rs 20,000 will be auto-reversed from his Fixed Deposit and he can withdraw total 50,000 .

Opportunity cost

A lot of us don’t bother about how much idle money is lying in our account and for how long. This happens because we think “I might need it soon, so lets not commit to any investment.” But then, the money keeps lying in the bank for months and months and sometimes even years.

Suppose your account has Rs 1 lac for 1 year, it will earn 3.5% interest on it, which is Rs 3,500 for a year. However if you have auto-sweep enabled in your savings account with threshold limit of Rs 20,000, the additional 80,000 will actually be in form of a xed deposit and it will earn an interest of 8% (assumption). In this, you will earn 3.5% of 20,000 which turns out to be Rs 700 and 8% of 80,000 which is Rs 6,400 , a total of 7,100 , which is almost 100% more than the rst case .

4/21/2016

Auto Sweep Account ­ Enable it in your

Saving Bank Account

A lot of people have much more than 1 lac in their accounts, not just 1 lac. You can earn some extra returns if you just enable auto-sweep on your saving account . So nd out if your bank provides the facility, just do it, and get it right away!

Also note that different banks have different names for this facility. For eg., ICICI Bank calls it ”Auto Sweep” , HDFC Bank calls it “Sweep-In” account , and SBI calls it “Saving Plus.” . Here is a list of other banks and the name by which they call this Auto-Sweep facility (thanks for Gopal Gidwani for the info)

  • IDBI Bank – Sweep-in Savings Account

  • Axis Bank – Encash 24

  • Union Bank – Union Flexi Deposit

  • HDFC Bank – Super Saver Facility

  • Bank of India – BOI Savings Plus Scheme

  • Oriental Bank of Commerce – Flexi Fixed Deposit Scheme

  • State Bank of India – Multi Option Deposit Scheme

  • Allahabad Bank – Flexi- x Deposit

  • Bank of Maharashtra – Mixie Deposit Scheme

  • Corporation Bank – Money Flex

  • United Bank of India – United Bonanza Savings Scheme

Disadvantages of Auto-Sweep Account

Auto-Sweep has some disadvantages too. In general the interest rates of normal xed deposit and FDs under Auto-Sweep are same, but some banks charge a penalty if the FD under auto-sweep accounts are broken before some duration like 1 yr and 1 day . But I think that’s ne. If not 8% , you will at least get 7%, still better than 3.5% .

Some banks are also known to give simple interest on the Auto-sweep Fixed Deposits and not compound interest as in case of normal xed deposits .

Don’t over do it

While Auto-sweep is a wonderful thing for salaried class people who want to maintain liquidity, as well as want to earn more interest on their unused money, one should not over do it. If you are very sure that the money lying in your account will really not be used for long, better to use the normal Fixed deposit or Debt funds. Only if you are unsure of your money lying in bank and when you might need it, you should be using

4/21/2016

Auto Sweep Account ­ Enable it in your Saving Bank Account

Auto-Sweep facility.

The way auto-sweep works, it makes it an ideal place to park emergency funds . So if you have kept 6



months of expenses as your emergency fund in Saving Bank, then you can enable auto-sweep facility and set threshold limit as 2-3 months of expenses, so that rest of the money can earn a better interest.

Comments: Did you know about Auto sweep account earlier? Do you think it will be helpful for you and do you plan to enable it?

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4/21/2016 Auto Sweep Account ­ Enable it in your Saving Bank Account Auto-Sweep facility. The wayemergency funds . So if you have kept 6  months of expenses as your emergency fund in Saving Bank, then you can enable auto-sweep facility and set threshold limit as 2-3 months of expenses, so that rest of the money can earn a better interest. Comments: Did you know about Auto sweep account earlier? Do you think it will be helpful for you and do you plan to enable it? Business Banking Study How does your institution rank? Find out in this ath Power report. Read more Articles from Jagoinvestor How PPF interest is Calculated (With Calculator) How is interest on saving bank account is calcu... PPF Maturity rules for withdrawing your money 5 must know rules before Opening PPF Account fo... NEXT  529 Comments Add Comment Anunay March 31, 2011 at 10:15 pm I believe its not worth, although the returns of upto 10% looks attractive but when it comes to quantum of interest then interest earned is not substantial . It only increases the complexity and I am sure even a nancial expert will nd it dif cult to reconcile the http://www.jagoinvestor.com/2011/03/auto­sweep­bank­account.html 4/34 " id="pdf-obj-3-24" src="pdf-obj-3-24.jpg">
4/21/2016 Auto Sweep Account ­ Enable it in your Saving Bank Account Auto-Sweep facility. The wayemergency funds . So if you have kept 6  months of expenses as your emergency fund in Saving Bank, then you can enable auto-sweep facility and set threshold limit as 2-3 months of expenses, so that rest of the money can earn a better interest. Comments: Did you know about Auto sweep account earlier? Do you think it will be helpful for you and do you plan to enable it? Business Banking Study How does your institution rank? Find out in this ath Power report. Read more Articles from Jagoinvestor How PPF interest is Calculated (With Calculator) How is interest on saving bank account is calcu... PPF Maturity rules for withdrawing your money 5 must know rules before Opening PPF Account fo... NEXT  529 Comments Add Comment Anunay March 31, 2011 at 10:15 pm I believe its not worth, although the returns of upto 10% looks attractive but when it comes to quantum of interest then interest earned is not substantial . It only increases the complexity and I am sure even a nancial expert will nd it dif cult to reconcile the http://www.jagoinvestor.com/2011/03/auto­sweep­bank­account.html 4/34 " id="pdf-obj-3-26" src="pdf-obj-3-26.jpg">

Read more Articles from Jagoinvestor

4/21/2016 Auto Sweep Account ­ Enable it in your Saving Bank Account Auto-Sweep facility. The wayemergency funds . So if you have kept 6  months of expenses as your emergency fund in Saving Bank, then you can enable auto-sweep facility and set threshold limit as 2-3 months of expenses, so that rest of the money can earn a better interest. Comments: Did you know about Auto sweep account earlier? Do you think it will be helpful for you and do you plan to enable it? Business Banking Study How does your institution rank? Find out in this ath Power report. Read more Articles from Jagoinvestor How PPF interest is Calculated (With Calculator) How is interest on saving bank account is calcu... PPF Maturity rules for withdrawing your money 5 must know rules before Opening PPF Account fo... NEXT  529 Comments Add Comment Anunay March 31, 2011 at 10:15 pm I believe its not worth, although the returns of upto 10% looks attractive but when it comes to quantum of interest then interest earned is not substantial . It only increases the complexity and I am sure even a nancial expert will nd it dif cult to reconcile the http://www.jagoinvestor.com/2011/03/auto­sweep­bank­account.html 4/34 " id="pdf-obj-3-31" src="pdf-obj-3-31.jpg">

How PPF interest is Calculated (With Calculator)

How is interest on saving bank account is calcu...

PPF Maturity rules for withdrawing your money

5 must know rules before Opening PPF Account fo...

NEXT  529 Comments Add Comment Anunay March 31, 2011 at 10:15 pm I believe its
NEXT
 529 Comments
Add Comment
Anunay
March 31, 2011 at 10:15 pm
I believe its not worth, although the returns of upto 10% looks attractive but when it
comes to quantum of interest then interest earned is not substantial . It only increases
the complexity and I am sure even a nancial expert will nd it dif cult to reconcile the

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Auto Sweep Account ­ Enable it in your Saving Bank

Account

statement especially when FD is broken in units of less than Rs. 5000. also savings ac
statement especially when FD is broken in units of less than Rs. 5000.
also savings ac gives interest of 3.5% on daily balance now making the sweep facility
not very attractive. Earlier this facility was USP of Private banks but now a days even
customers also dont show any interest in this type of product.
Reply
Manish Chauhan
April 1, 2011 at 2:21 pm
Anunay
Why do you think daily interest on saving bank will give enough return , it
still comes out to be around 3.5-3.7% .
Also Financial experts dont go that deep into your Passbooks to look at
number . Can you share what exactly is the reason you think this is not worth
the hassle ?
Manish
Reply
Anunay
April 4, 2011 at 9:53 pm
Hi Manish
I had opened a auto sweep and reverse sweep account with ICICI
bank in 2002, however after 1 and half year the interest I earned
was around Rs. 2800 considering my average credit was Rs. 48000
pm and my minimum balance was Rs 15000 at any point of time.
Being a nancial expert myself i found that understanding and
reconiling of my statements was a herculen task. Trust me being
well educated in nance and even being a nancial expert I had to
spend a lot of time to reconcile my bank statement, I wonder what a
normal person would go through if he would have been at my place.
6-10 years back every bank was boasting of offering auto sweep
and reverse sweep facility which I am sure no bank boasts of. even if
they are providing this facility they never boast of or even mention
about this facility in any of its brochure.
Net net, reward earned by this facility will never match the
expectations according to the balances kept in the savings
account.
.
For the person whose average credit is Rs 10000, the kind of

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Auto Sweep Account ­ Enable it in your Saving Bank Account

returns he would get will never be the worth considering the trouble he would go through
returns he would get will never be the worth considering the
trouble he would go through reconciling his statements and it
would be the same with a person with average credit of Rs 5 lacs
monthly.
On percentage returns perspective it might really be very
attractivebut when it comes to absolute returns its not a good
proposition
Reply
Manish Chauhan
April 5, 2011 at 10:24 am
Anunay
Ok , so by “net return” , you mean everything considering
number returns + inconvinience too ? I dont know many
who actually reconcile their bank statement personally
,they are mostly interested in seeing money in thier
account . thats all
For those people what do you think ?
Manish
Reply
Anunay
April 6, 2011 at 11:17 pm
Ha ha…. those people cant even make out how
much they have earned they will just have a feel
good factor that they are earning FD interest rate
(Upto 105 in today’s scenario)
Reply
Karun
April 7, 2011 at 12:09 am

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Auto Sweep Account ­ Enable it in your Saving Bank Account

Hi Just coreecting you here its 109.75 in todays scenario (FDR for one year) Karun Reply
Hi
Just coreecting you here its 109.75 in
todays scenario (FDR for one year)
Karun
Reply
Marshal
March 31, 2011 at 9:15 pm
thanks manish for sharing, am using SBI MOD facility from past one year and i think i
did mention this somewhere in your blog as a comment
cluttered pass book or online statement..
..
and it is really worth barring
Reply
Manish Chauhan
April 1, 2011 at 2:18 pm
Marshal
But dont you think its better to get 3-4% return even if your pass book is bit
cluttered .
Manish
Reply

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Auto Sweep Account ­ Enable it in your Saving Bank Account

Ahmad Zaib March 31, 2011 at 8:47 pm No I didn’t know about this and as
Ahmad Zaib
March 31, 2011 at 8:47 pm
No I didn’t know about this and as always this is some nice information!
Thanks Manish once again!
Reply
Manish Chauhan
April 1, 2011 at 2:16 pm
Ahmad
Great
. Use it now and spread the word
Manish
Reply
Paresh
March 31, 2011 at 8:28 pm
Thank you for this information.
Really,smaller things can change to bigger if we provide proper attention and take care
of it.
Information you provided is really in welfare of investors.
Just one thing I would like to update,,to avail sweep in facility of IDBI bank one needs
to maintain average annual balance of Rs.50,000/- in FFD.
Thank you.
Reply
Paresh
March 31, 2011 at 9:39 pm
one correction in my above comment:
quarterly avg balance of Rs 50,000/- to be maintained in ffd ,,its not annual
avg balance.
Reply
Manish Chauhan
April 1, 2011 at 2:15 pm

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Auto Sweep Account ­ Enable it in your Saving Bank

Account

Paresh Differnet bank have their own limits . IDBI has a bit over streched limis i
Paresh
Differnet bank have their own limits . IDBI has a bit over streched
limis i guess
Manish
Reply
Paresh
April 1, 2011 at 10:53 pm
yes.but idbi advantage is the zero balance account with all
facilities and no service charges for imp. services.even they
don’t charge for DD,,outstation cheques etc….
Reply
Manish Chauhan
April 4, 2011 at 9:52 am
Paresh
I think thats more important thing for a normal
customer . IDBI has been positioning it self very
well in last 1-2 yrs as a customer friendly bank
which does not charge for basic things .
Manish
Reply

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Auto Sweep Account ­ Enable it in your Saving Bank Account

Ganesh March 31, 2011 at 7:47 pm So what about the tax part of this. We
Ganesh
March 31, 2011 at 7:47 pm
So what about the tax part of this. We all know that if you take the tax part into
consideration FD gives a pretty bad returns.
Reply
Manish Chauhan
April 1, 2011 at 1:05 pm
The taxation part is same as FD ,all interest is added to your income .
Manish
Reply

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Auto Sweep Account ­ Enable it in your Saving Bank Account

Gopal Gidwani March 31, 2011 at 7:45 pm Hi Manish, I dont think there is a
Gopal Gidwani
March 31, 2011 at 7:45 pm
Hi Manish,
I dont think there is a charge for this service from the bank. This is offered as a
complimentary service with the Savings Account to encourage people to keep money
in their Savings Bank Account rather than putting it in a debt fund. If they penalise
customers for availing this service then customers will not opt for this service and it
will beat the entire purpose of this facility.
When I was doing research on the same topic, I did visit websites of a number of banks
offering this product. But I did not nd anywhere mentioned if any bank is charging for
this service. If you are talking about any speci c bank which is charging for this service
then I am not sure and I may be wrong. But as a general trend since this product is a
complimentary product and this bene ts banks more than the customers (even
though customers get the liquidity of a savings account and returns of a xed deposit)
so it makes no sense for banks to charge for this product as it will dissuade customers
from availing this product.
I did read some readers complaining about their account statements cluttered
because of additional accounting enteries due to this facility. But I feel the cluttered
statement is worth it if it helps the customer earn an additional 4-4.5% over and above
the normal return of a savings account of 3.5%
Best Regards
Gopal Gidwani
Reply
Manish Chauhan
April 1, 2011 at 1:54 pm
Gopal
Agree with you on all points . Just that some banks are not that excited to
make this facility easy enough for customers . There many blockages and
rules which keep people stay away from this service.
Manish
Reply

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Auto Sweep Account ­ Enable it in your Saving Bank Account

Pratik Agarwal March 31, 2011 at 7:21 pm I too have an experience with Bank Of
Pratik Agarwal
March 31, 2011 at 7:21 pm
I too have an experience with Bank Of Baroda, and my experience regarding the
clutterness in pass book was same. Its very very hard to tackle the transactions from
FD to normal account,
regarding interest rate & charges I am not aware, I just once tried my brain to see if all
debits & credits were genuine,
Reply
Manish Chauhan
April 1, 2011 at 1:37 pm
Pratik
So do you feel that the extra money earned by this facility is not of value
compared to the uncluttered ness in your Pass book ?
Manish
Reply

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Auto Sweep Account ­ Enable it in your Saving Bank Account

Rakesh March 31, 2011 at 7:15 pm Manish, Once again very good article. I had checked
Rakesh
March 31, 2011 at 7:15 pm
Manish,
Once again very good article.
I had checked with HDFC bank few months ago and they said i cannot link it to my
existing savings account and would have to open a new account and link it.
That’s just too much pain to manage another account.
Rakesh
Reply
Vishnu
April 1, 2011 at 12:50 pm
Hi,
U can do it online through netbanking without any request.
Reply
Somen Jana
August 27, 2014 at 8:58 pm
dear Vishnu,
Can you kindly tell me the procedure to activate the auto sweep
facility through net banking?
Thanks in advance
Reply
Manish Chauhan
April 1, 2011 at 1:32 pm
Rakesh
Ask them for a link on the website where its mentioned that you cant enable
it on your existing account, if they can give you the link , then its ne .
Else tell them you will complain to Banking ombudsman about it, lets see
what do they say in that case
Manish
Reply

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Auto Sweep Account ­ Enable it in your Saving Bank Account

Sameer Bhiwani March 31, 2011 at 6:54 pm I have one of these accounts from HDFC,
Sameer Bhiwani
March 31, 2011 at 6:54 pm
I have one of these accounts from HDFC, but I have never seen any FD transactions, or
got any sweep in/out noti cations. I really have no way to nd out what part of my
money is earning what interest.
Moreover, the sales exec who sold me the a/c said anything above 50k will get FD
interest; I told him that I’ll take it only if the amount is 25k, not 50k. He said he will get
it done.
But when I got the a/c docs, it showed 1 lakh – i.e. only amount above 1 lakh will get FD
interest. When I called him again, he made excuses.
But for amount even about 1 lakh, I don’t see any activity or have any way to really say
that this has worked.
Is there anything else that needs to be done to enable this? How do you know on what
amount, how much interest you got and for what duration?
Sorry if this sounded like a rant, I just had to ink it!
Sameer
Reply
Manish Chauhan
March 31, 2011 at 7:03 pm
Sameer
Thanks for that info, Generally bank will ask you in the form what amount
you need as “Threshhold” limit . banks will have their own “minimum limit” . If
you have sweep in enabled , then you should be getting the bene t , It cant
happen that Bank is not giving it to you and incase they are not providing you
bene t, its a clear case of service defeciancy and you should be complaining
abiout it to Bank and then to Banking Ombudsman (coming next in the
article) .
You need to take a step and enquire about it, because you are loosing some
potential money .
manish
Reply
Sameer Bhiwani
March 31, 2011 at 8:42 pm

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Auto Sweep Account ­ Enable it in your Saving Bank Account

Thanks Manish. This is where I have a doubt – perhaps any HDFC customer using this
Thanks Manish. This is where I have a doubt – perhaps any HDFC
customer using this can answer – how do you know what is the
amount earning FD interest? Should we just see the interest
amount and be happy (like savings interest)? or do we have a right
to know how they arrived at that amount (like regular FD)?
Reply
Karun
April 1, 2011 at 12:55 am
Hi Sameer,
My experience tells me that pvt sector banks charge a lot of money for small
services.
In your case keeping aside 1 lac in savings A/c at 3.5% defeats all the purpose
of opening a Auto Sweep In A/c.
SBP provides this facility for 10k with interet rate of9.75% (for 1 year).
Karun
Reply
Sameer Bhiwani
April 1, 2011 at 10:04 am
@Karun
Yes, that’s the reason why I negotiated it to 25k, but the ‘senior
sales exec’ was a fraud, his ethics were not as good as his english!
Sameer
Reply
Manish Chauhan
April 1, 2011 at 1:28 pm
Sameer
ok , so this becomes a clear case of negligence by the bank ,
Have you complained to bank about it and it has been 1
month passed from that date ? Now you have to approach
banking ombudsman and I am sure they will take care of
this , may be a little late but, be a bit patient .
See my next article on Banking ombudsman !
Manish

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Auto Sweep Account ­ Enable it in your Saving Bank Account

Reply P Venkatesan March 31, 2011 at 6:17 pm Nice article.Somebody only know this facility.But some
Reply
P Venkatesan
March 31, 2011 at 6:17 pm
Nice article.Somebody only know this facility.But some banks give lot of facility,like
SBI give the total balance in passbook( balance,avail balance).But Dhanalakshmi
Bank,only balance availability in passbook.
Reply
Manish Chauhan
March 31, 2011 at 6:25 pm
P Venkatesan
Thanks for sharing that info . I think one account in SBI is something which
one should de nately have . What do you say ?
Manish
Reply

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Auto Sweep Account ­ Enable it in your

Saving Bank Account

chandermani March 31, 2011 at 6:13 pm One problem i have faced in the past when
chandermani
March 31, 2011 at 6:13 pm
One problem i have faced in the past when i used such a facility was that the account
statement becomes very cluttered. There are entries for all sweep in outs and making
sense of the account activity is nearly impossible.
This factor should be kept in mind while using this facility. My experience was with
ICICI bank.
Reply
Manish Chauhan
March 31, 2011 at 6:23 pm
Chandermani
Thats a good info to know , I was not aware of it
. Yes if a person is too
sensitive about uncluttered ness than one will have to think about it
Manish
Reply
shyam
March 31, 2011 at 5:25 pm
But, surely this will be valuable to many viewers.
1ce again Manish, Thkx for the effort.
Reply
Manish Chauhan
April 1, 2011 at 1:25 pm
Shyam
Thanks
Reply

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Auto Sweep Account ­ Enable it in your Saving Bank Account

Vikas March 31, 2011 at 5:25 pm Lovely article Manish. I think this is something which
Vikas
March 31, 2011 at 5:25 pm
Lovely article Manish. I think this is something which many people can make use of.
Thanks for sharing.
Reply
Manish Chauhan
March 31, 2011 at 6:22 pm
Vikas
Thanks . Share it with your friends too
manish
Reply
shyam
March 31, 2011 at 5:24 pm
I knew abt the Auto-sweep account earlier, but surely i hv learnt something extra here
abt the penalty charges from banks and the various names under which the banks
offer.
Reply
Manish Chauhan
March 31, 2011 at 6:22 pm
Shyam
Thats great to know . Share something with us which we have no covered
here
Manish
Reply
Ninad
April 3, 2011 at 5:26 pm
In case of HDFC they have penalty of 1% on part of the FD which
breaks. IDBI bank does not have such penalty.
One more thing with HDFC bank is the FDs break in FIFO method.

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Auto Sweep Account ­ Enable it in your Saving Bank Account

ie oldest FD breaks rst. My own experience was that due to this none of the
ie oldest FD breaks rst. My own experience was that due to this
none of the FDs completed their full term. Now a days I manually
break the FD online (mostly the last one created) in case of
emergency funding.
Reply
Manish Chauhan
April 4, 2011 at 9:51 am
Ninad
Breaking FD’s in FIFI style does not look to good to
me. As you said it does not help you gain the maximum
returns . It should be LIFO style
Manish
Reply
KRANTI
November 5, 2012 at 9:26 pm
Hmmm….manish LIFO-FIFO must have reminded
u of ur computer engineering days!!
and the
same is for me too!! Nice to hear these terms!!!
Reply
Manish Chauhan
November 6, 2012 at 2:56 pm
Yup !
Reply
viswanadham
June 9, 2011 at 1:33 pm
I heard that HDFC Bank does not allow online liquidation
of an FD created manually in a branch. Nothing about it is

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Auto Sweep Account ­ Enable it in your Saving Bank Account

written on its website, but do you have some experience on this issue? Reply Tribhu November
written on its website, but do you have some experience on
this issue?
Reply
Tribhu
November 25, 2011 at 8:56 am
This is true that FD created from a branch can not
be canceled from site. I got this information
through mail from HDFC.
Tribhu..
Reply
Manish Chauhan
November 25, 2011 at 11:03 am
Tribhu
I am nt sure if thats true for all the banks , i
think in ICICI its possible
Manish
Reply
tarun
June 4, 2011 at 9:29 am
8979658160 hello…………………………….
Reply
Amarnath
March 31, 2011 at 5:23 pm
This is what ICICI says about auto-sweep account !.
Dear Mr. Reddy,
b
Eff
i
O
1
2005 f
d
f
i
ill b
d

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Auto Sweep Account ­ Enable it in your Saving Bank Account

ect ve cto er , , un s rom your sav ngs account w e move
ect ve
cto
er
,
,
un
s
rom your sav ngs account w
e move
to create
xed deposits only on your speci c requests.
We are unable to service your request to continue the facility of Auto-sweep in your
account as the last date (January 31, 2006) to place a request for continuation of the
facility is completed.
This is intimated to all our customers along with the account statements.
However, you can give speci c request to the bank to create a Fixed Deposit by
sweeping money from your savings account and link the FD so created to the savings
account.
Features of Money Multiplier account ( earlier known as auto invest account or
quantum optima):
The creation of linked Fixed Deposit (FD) will be done only on speci c request from
the customer.
1.
You have to give speci c request to the bank to create a Fixed Deposit by sweeping
money from his savings account and link the FD so created to the savings account.
2.Minimum balance in the savings account should be Rs.15,000 to generate a linked
FD request
3.
FD requests will be made in multiples of Rs.5,000 only.
4.
You may have more than one FD linked to the same account. you need to give
speci c request for each FD creation and linking.
5.
The linked FDs will be under the same Customer ID.
6.
All FDs linked to the account will be enabled for automatic reverse sweep in
multiples of Rs.5,000 when the balance in the savings account falls below Rs.10,000.
7.
FDs will be broken in LIFO (Last In First Out) basis for reverse sweep.
Kindly note that Money Multiplier Account is also updated in the “Terms and
Conditions” section on the web site http://www.icicibank.com.
Reply
Manish Chauhan
March 31, 2011 at 6:21 pm
Amarnath
Thanks for sharing this, when did ICICI send you this email ? because it
seems auto sweep with ICICI will not be that attractive !
Manish

4/21/2016

Auto Sweep Account ­ Enable it in your

Saving Bank Account

Reply Amarnath March 31, 2011 at 8:58 pm it was last month when I try to
Reply
Amarnath
March 31, 2011 at 8:58 pm
it was last month when I try to enquire on the product. Yes they
made it very dif cult enroll , they allow online FD’s / Insurance / and
other products. But not the sweep-account , may be they dont want
to encourage ppl to use the sweep-account facility as it cost more to
them .
Reply
Manish Chauhan
April 1, 2011 at 1:24 pm
Amarnath
Thats bad . Other readers have also enrolled for this facility
and they seem to be ok with it , check other comment
Manish
Reply
JayaprakashReddy
April 2, 2011 at 10:30 am
Amarnath,
I’ve been using this service since last couple of months.
Yest, there is a difference in this facility from other banks.
This facility is one way automatic. If you have excess you
can create FD above 15k and they will reverse sweep the
amount whenever your balance goes below 10k. It looks
good to me and whenever I deposit amount in the account
I’ll create money multiplier FD and throughout the month
whatever payments are going from my account, they will
reverse sweep the amount from FD to savings account and
also they add interest for the amount you kept for that
duration even if it is 1rs.
Reply

4/21/2016

Auto Sweep Account ­ Enable it in your Saving Bank Account

Manish Chauhan April 4, 2011 at 9:44 am Thanks for the update from your side Reply
Manish Chauhan
April 4, 2011 at 9:44 am
Thanks for the update from your side
Reply
Vijay
April 11, 2011 at 1:49 pm
I called ICICI bank customer service and they said auto sweep facility is not
available now. Instead they have money multiplier in which customer has to
create Linked FD which will earn FD interest. This amount will paid if
customer doesn’t have suf cient balance to serve cheque request.
Reply
Manish Chauhan
April 11, 2011 at 5:23 pm
Vijay
Its only for existing cusomters right now .
Manish
Reply
Sanghmitra
March 31, 2011 at 5:08 pm
Hi,
It’s astonishing how we didn’t knew such easy way of parking money…Good info…
Will go for it soon..
Just need to clarify, does it work like “every excess amount at month end frequency (
correct me if wrong) gets transferred to FD at particualr interest rate ( which is what?).
When will be the maturity date?
Reply
Manish Chauhan
March 31, 2011 at 5:14 pm
Sanghmitra
When you enable the service
you will have to tell the bank about all these

4/21/2016

Auto Sweep Account ­ Enable it in your Saving Bank Account

, details that how long the FD should be like 1 month , 3 month or
,
details that how long the FD should be like 1 month , 3 month or 1 yr etc .
Depending on your inputs , it will be functioning .
Manish
Reply
som
April 1, 2011 at 12:17 pm
I think in SBI the system by default takes it for 12 months.In case of
Bank of Baroda it is by default for 180 days.
Reply
Manish Chauhan
April 1, 2011 at 1:20 pm
Som
But dont they ask you for your personal prefference ? I
thought if a investor does not mention any personal
preference , then only the default numbers come into
picture ?>
Manish
Reply
Amrit
August 10, 2012 at 12:52 pm
Hi Manish,
I think you are right. by default SBI put the sweep
account money for 1 yrs. I have an experience for
that. I had opened the account in SBI but i was not
aware about the rules and regulation of sweep
account. I deposited around 20,000 in my account
and few day later i saw them in sweep account for
1 year, then only i came to know that there is
something like sweep account.
Reply

4/21/2016

Auto Sweep Account ­ Enable it in your Saving Bank Account

Manish Chauhan August 10, 2012 at 5:37 pm So for your case sweep account was activated
Manish Chauhan
August 10, 2012 at 5:37 pm
So for your case sweep account was
activated by default ? that should ideally
not happen !
Reply
Devendra
December 8, 2014 at 9:02 pm
Some of bank Managers are really
very known of about these features
so they activate at the time of
account opening. But still there are
lots of old age managers which are
not aware of new interface of
computer software and its facilities.
Reply
Manish Chauhan
December 26, 2014 at 6:56 pm
Yea especially in old banks
like SBI or Maharashtra bank
Reply

4/21/2016

Auto Sweep Account ­ Enable it in your Saving Bank Account

Hitesh March 31, 2011 at 5:06 pm Hi manish, the link is the same as you
Hitesh
March 31, 2011 at 5:06 pm
Hi manish,
the link is the same as you mentioned but under the heading sweep in facility there is
3rd point of services and fees. but when we click on it it does not show the fees.
Thanks
Hitesh
Reply
Manish Chauhan
March 31, 2011 at 5:08 pm
Hitesh
That link is a general “fees” link and not for this particular service .
Manish
Reply

4/21/2016

Auto Sweep Account ­ Enable it in your Saving Bank Account

Abhilash March 31, 2011 at 5:03 pm Lets say that I enable the autosweep facility on
Abhilash
March 31, 2011 at 5:03 pm
Lets say that I enable the autosweep facility on my account. I then breat it and sweep
back the entire amount after 6 months. So do I get the FD interest rate for 6 months
on the auto swept amount assuming that there is no penalty?
Reply
Manish Chauhan
March 31, 2011 at 5:09 pm
Abhilash
Yes , you get the interest for any duration for which FD was there . Also note
that you dont have to do anything manually from your side ,. For you it will
appear as if you have all the money in cash , this sweep in converstion of
extra cash into FD is all by technology .
manish
Reply
shanu
February 24, 2014 at 6:12 pm
pls tell in more detail if minimum period for fd is 1 year .
can we get the intrest for 6 month for fd in auto sweep ?
Reply
Manish Chauhan
March 3, 2014 at 11:11 am
You will get interest for whatever duration you open it
Reply
raju
March 31, 2011 at 5:00 pm
Hi Manish,
Nice article once again.
It will be good,if we can get the info of the banks which offers this kind of facility with
different names.

4/21/2016

Auto Sweep Account ­ Enable it in your Saving Bank Account

Because people have savings account in different banks not just ICICI,HDFC,SBI. As I know, IDBI ,Indian
Because people have savings account in different banks not just ICICI,HDFC,SBI.
As I know, IDBI ,Indian bank also offers similar option with some different name.
Once again thanks for your article.
Regards,
Raju
Reply
Manish Chauhan
March 31, 2011 at 5:07 pm
Raju
IDBI calls it Sweep In account , not sure about Indian bank
manish
Reply
Murali
September 19, 2013 at 5:14 pm
Hi Manish
How to avail this facility if we already have a savings bank a/c
(salary a/c) with idbi.
Regards
Murali
Reply
Manish Chauhan
September 25, 2013 at 2:09 pm
Talk to their customer care !
Reply
Gopal Gidwani
March 31, 2011 at 6:56 pm
Hi Raju,
Some of the banks that offer this product under different names include:
IDBI Bank – Sweep-in Savings Account
Axis Bank – Encash 24

4/21/2016

Auto Sweep Account ­ Enable it in your Saving Bank Account

Union Bank – Union Flexi Deposit HDFC Bank – Super Saver Facility Bank of India –
Union Bank – Union Flexi Deposit
HDFC Bank – Super Saver Facility
Bank of India – BOI Savings Plus Scheme
Oriental Bank of Commerce – Flexi Fixed Deposit Scheme
State Bank of India – Multi Option Deposit Scheme
Allahabad Bank – Flexi- x Deposit
Bank of Maharashtra – Mixie Deposit Scheme
Corporation Bank – Money Flex
United Bank of India – United Bonanza Savings Scheme
This list is a little old. If any bank has withdrawn the product or changed the
name for the product then I am not sure of it.
Best Regards
Gopal Gidwani
Reply
Manish Chauhan
April 1, 2011 at 1:19 pm
Gopal
Thanks for the info , I have added it on the main blog
Manish
Reply
Hitesh
March 31, 2011 at 4:56 pm
I have checked at hdfc website and it states that it has some service charge attached to
this sweep in facility. In that case the interest % may reduce more.
Reply
Manish Chauhan
March 31, 2011 at 5:01 pm
Hitesh
Can you give me the link you are checking, I looked at this site :
http://www.hdfcbank.com/personal/accounts/ xed_deposits/sweep_in_account/sweepin.htm
also in general this facility is not chargable , but if bank decides to charge for
it , I am not sure if we can do anything ,you have to choose or not-choose .

4/21/2016

Auto Sweep Account ­ Enable it in your Saving Bank Account

manish manish Reply Sidharth March 31, 2011 at 10:24 pm Hi manish, Once again very informative
manish
manish
Reply
Sidharth
March 31, 2011 at 10:24 pm
Hi manish,
Once again very informative article.
am just 1 month old to this website & so excited that, i read all the
articles from 2007 in just 1 week.
its help me a lot in my nanancil planning
ex-no. of mutual funds reduced to 10 from 17.
-restart few discontinued SIP.
I
Thanks for all your hard work.
Reply
Manish Chauhan
April 1, 2011 at 1:16 pm
Sidharth
Thanks for sharing your experience, I am happy that you
took some actions by getting motivated from this blog .
thats really inspiring , these actions are the thing which will
take your nancial life from one level to another .
Keep reading
Manish
Reply
Nitin Gupta
April 1, 2011 at 10:53 am
The hdfc link, has a statement “You can avail of both, a SuperSaver
Facility as well as a Sweep-In Facility if you have linked your
deposits to a Savings Facility”. It means that super saver and sweeo
in are different.
I
am confused.
Reply

4/21/2016

Auto Sweep Account ­ Enable it in your Saving Bank Account

Manish Chauhan April 1, 2011 at 1:18 pm Nitin Are you NRI ? because Super Saver
Manish Chauhan
April 1, 2011 at 1:18 pm
Nitin
Are you NRI ? because Super Saver seems to be a Sweep-in
kind of facility for NRI customers from HDFC
Manish
Reply
Manish Chauhan
April 1, 2011 at 1:22 pm
http://www.thinkplaninvest.com/2009/10/what-is-super-
saver-and-sweep-in-accounts/
Reply
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