Sweep-in FD banks

[palen]

Hi,

Are you currently using any auto sweep-in facility?
Which bank?
What is the balance post which money gets auto sweep?
How has been your experience so far?

My plan is to open one for parking emergency funds on a monthly basis.

 

[palen]

Well, what you've described above as the sweep out facility (from an FD), is actually the very definition of how a Flexi FD works! This is actually a different product from what is normally known as the Sweep-out - Sweep-in facility for a savings account!

So the Bank define sweep out like that these days, so their customers can be kept in a confused state?!
.

I don't understand. Are you saying that sweep in still exists?

 

[Trust Me]

I don't understand. Are you saying that sweep in still exists?

No. If the bank say it doesn't, they may have removed the product. But you do need to be clear about the 2 distinct type of products in your mind yourself, to be able to ask them the right questions to be absolutely sure. Why not describe the product you want, and ask them if they have it? If ICICI don't, it's such a common product that there would be any number of other banks offering it, if you must have it.

If you ask me, you're much better off with the Flexi FD product than with the auto sweep-out - sweep-in thing. It allows you more control over your own money, and potentially could generate more income for you as well. And in the days of netbanking, it requires only minutes more of your time per year!

Believe me, I'm talking from years of experience. I like to be as lazy myself as I can afford, but I'd much rather benefit from it myself than offering it to somebody else (like a bank)!
.

 

[shashank08]

Kotak - ActivMoney available for all variants including 811 :: if Amount Exceeds 25k will be converted to fd.

Paytm - Partnered with indusind :: if amount 1k exceeds ....

Above services are free* and for all

Every bank nowadays provides autosweep facility***, contact RM or branch for queries.

And kotak gives 7% pa interest on sweep FD..
There is no penalty for premature withdrawal.
FDs are created for 6 months maturity..
Looks like kotak has best deal in terms of auto sweep FD..

 

[palen]

No. If the bank say it doesn't, they may have removed the product. But you do need to be clear about the 2 distinct type of products in your mind yourself, to be able to ask them the right questions to be absolutely sure. Why not describe the product you want, and ask them if they have it? If ICICI don't, it's such a common product that there would be any number of other banks offering it, if you must have it.

If you ask me, you're much better off with the Flexi FD product than with the auto sweep-out - sweep-in thing. It allows you more control over your own money, and potentially could generate more income for you as well. And in the days of netbanking, it requires only minutes more of your time per year!

Believe me, I'm talking from years of experience. I like to be as lazy myself as I can afford, but I'd much rather benefit from it myself than offering it to somebody else (like a bank)!
.

You are repeating what you and I have said already 😂

ICICI doesn't have an auto sweep facility/money multiplier. However, sweep out and flexi fd are available.

If a bank decides to remove a certain product and feature, it's up to the customers to make a decision. In fact, I told the branch the same feedback and they even assured that they communicate this internally.

 

[palen]

And kotak gives 7% pa interest on sweep FD..
There is no penalty for premature withdrawal.
FDs are created for 6 months maturity..
Looks like kotak has best deal in terms of auto sweep FD..

Yes, kotak activmoney seems to be a good choice. But be aware, they levy charges without your consent. In my case, they dispatched physical dc without my consent. It took me multiple follow ups to fix it. I lost my trust with the bank.

 

[Trust Me]

You are repeating what you and I have said already 😂

ICICI doesn't have an auto sweep facility/money multiplier. However, sweep out and flexi fd are available.

If I did, that was due to the Bank's confusing choice of terminology: projecting Sweep out as a special kind of stand alone product! Whereas, as you've described it, I don't see any difference from the Flexi FD. Did they tell you the difference?

In fact, I told the branch the same feedback and they even assured that they communicate this internally.

That is just Employee Training 101. They are trained to give such assurances to all customer giving feedback. I'm not sure those are even forwarded to anybody. I'm yet to see anything coming out of such assurances.

 

[Nagarjun P S]

Does the excess amount which gets sweeped into a FD be considered for MAB or AQB?

 

[sxchzy]

Does the excess amount which gets sweeped into a FD be considered for MAB or AQB?

yes

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