What is HDFC sweep in FD?
HDFC Sweep in FD is a special feature where your HDFC savings account is linked to a fixed deposit (FD). When funds in a savings account run low, the bank will transfer funds from your fixed deposit to the savings account. This does not affect your fixed deposit interest rate, so you get the benefit of both easy access to your money and higher interest like an FD.
Let’s say you have a HDFC sweep-in FD account with ₹1 lakh in your fixed deposit account and your savings account has around ₹25000. You issued a cheque for making a payment of ₹40000 in such a situation the bank will transfer funds from your fd account to meet the cheque payment.