Hello World, hope the Hiveans are doing great as always. Many of us know about the sweep in facilities, but many people are not aware of auto sweep in, so I just want to share my experience with sweep in.
I have done a sweep in FD yesterday, I was also not exactly aware of the full facilities. But I got the knowledge from my husband. So basically Sweep in helps a lot if you have insufficient funds in your bank account.
When we do a sweep in FD, what bank does is, they breaks up the units of FD into unit of RS. 1. This helps in keeping the funds into your sweep in saving or the current account whatever is linked with.
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I will give an example which I have tried yesterday, after doing the sweep in FD there was less fund into my account and I had to renew my parents Term insurance. So the total of 5000 was need more into my account. But I tried doing the whole payment with my account and the payment was successful even with the less funds because the remaining 5000 got deducted from my sweep in account. And when I saw my savings account balance, it was coming in minus. It will settle down automatically once you have the funds in your account.
And there will be certain minimum and maximum limit of sweep in transaction and that depends on your bank.
What is the difference between flexi FD and Sweep in FD?
Flexi FD: This will be fixed amount which you can break anytime. And it doesn't help you in case of insufficient funds in your bank.
Sweep in FD: This is will help an individual in case they have insufficient funds, it stores the funds in the sweep in savings or the current account.
Happy Reading 😊
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