hdfc savingsmax account questions

[ltf4ever]

savingsmax account comes with automatic sweep in facility.

if i try to manually break the FD created by auto sweep out, it shows me a penalty of 1% due to premature break of fd.

but if i transfer the amount to my own account in another bank, then the sweep in will trigger and fd will be broken in units of 1 rupee.

does this transfer attract any penalty? i was thinking of using this method to break my fd without penalty.

 

[TheTrickySid]

savingsmax account comes with automatic sweep in facility.

if i try to manually break the FD created by auto sweep out, it shows me a penalty of 1% due to premature break of fd.

but if i transfer the amount to my own account in another bank, then the sweep in will trigger and fd will be broken in units of 1 rupee.

does this transfer attract any penalty? i was thinking of using this method to break my fd without penalty.

Yes this will also attract the penalty, but nothing to worry the 1% penalty is on the intrest amount earned and not on the principal amount.

 

[Infiniti]

Yes this will also attract the penalty, but nothing to worry the 1% penalty is on the intrest amount earned and not on the principal amount.

Their saving account offers 3% interest rate. The FD in 7 to 29 days at 2.75% and 30 to 90 days at 3.25%. So if you lose 1% in case of liquidating the FD auto swept FD, you are better off retaining this in your savings account? Doesn't make sense. I don't think this would attract the penalty. Also you are better off as is upto 29 days in the savings account.

 

[ltf4ever]

Their saving account offers 3% interest rate. The FD in 7 to 29 days at 2.75% and 30 to 90 days at 3.25%. So if you lose 1% in case of liquidating the FD auto swept FD, you are better off retaining this in your savings account? Doesn't make sense. I don't think this would attract the penalty. Also you are better off as is upto 29 days in the savings account.

auto swept out FD is by default for 1 year, which is giving 5.50 percent interest as of today.
i just need to get an idea of any penalties though i will be better off compared to savings acct in case fd is autobroken. that will help me to invest in better options that give me better returns as compared to post-penalty, net interest rate. hdfc hasn't mentioned about any penalty on their savingsmax, moneymaximizer, or autosweepin page but banks are notorious for 'hidden' t&cs.

 

[TheTrickySid]

Their saving account offers 3% interest rate. The FD in 7 to 29 days at 2.75% and 30 to 90 days at 3.25%. So if you lose 1% in case of liquidating the FD auto swept FD, you are better off retaining this in your savings account? Doesn't make sense. I don't think this would attract the penalty. Also you are better off as is upto 29 days in the savings account.

See,
According to me auto sweep is only beneficial for 0 balance accounts.
I'll explain you with example:
Let's consider whenever the balance in the savings account goes above 50k the balance above 50k automatically get converted into an FD.
Thus if you deposit 2L into your account 50k remains in the savings account and the rest 1.5L gets converted into an FD.
Now if you make a payment of 1L then 50k from savings account will be utilised and 50k will be withdrawn from the FD. Thus your payment of 1L was made and now there's remaining 1L in savings account in form of FD.
The problem starts now, as you made a payment of 1L the whole 50k from savings account was utilised along with 50k from FD.
Now considering the savings max account in HDFC which has mab of 25k you account would now start attracting non maintenance charges as you savings account balance is zero.
And the FD for auto sweep will be liquidated only for processing the payment of amount more than the savings account has, not to compensate with the savings balance falling below the required mab which in this case is 25k.

 

[ltf4ever]

See,
According to me auto sweep is only beneficial for 0 balance accounts.
I'll explain you with example:
Let's consider whenever the balance in the savings account goes above 50k the balance above 50k automatically get converted into an FD.
Thus if you deposit 2L into your account 50k remains in the savings account and the rest 1.5L gets converted into an FD.
Now if you make a payment of 1L then 50k from savings account will be utilised and 50k will be withdrawn from the FD. Thus your payment of 1L was made and now there's remaining 1L in savings account in form of FD.
The problem starts now, as you made a payment of 1L the whole 50k from savings account was utilised along with 50k from FD.
Now considering the savings max account in HDFC which has mab of 25k you account would now start attracting non maintenance charges as you savings account balance is zero.
And the FD for auto sweep will be liquidated only for processing the payment of amount more than the savings account has, not to compensate with the savings balance falling below the required mab which in this case is 25k.

thanks mate. sorry, i forgot to mention that mine is preferred tier so mab is 0.
so was focussing only on interest rate and penalties.

 

[FinoGuy]

1)1% penalty means 1% of interest amount earned as of the day of fd closed.
2)interest rates are calculated according to prevailing days currently bank is offering. So even if you made fd for 1yr (@5.5%),but closed fd at 29th day, then interest earned (for the amount withdrawn) will be for 29 days(@2.75% as per bank offering for upto 29 days),
3)so final interest in this case would be 1.75% of amount withdrawn per year/365 *29,let's say 1L withdrawn at 29th day then 2750/365*29=218.5rs..
4) so as per above comment interest in savings account is 3% and for fd upto 28 days is 2.75%,considering this, if you withdraw amount from fd before 29 days you'll lose 0.25%.,(for 1L in above example, i.e238-218.5=19.5rs)
Hope this answers your query completely..

 

[Infiniti]

1)1% penalty means 1% of interest amount earned as of the day of fd closed.
2)interest rates are calculated according to prevailing days currently bank is offering. So even if you made fd for 1yr (@5.5%),but closed fd at 29th day, then interest earned (for the amount withdrawn) will be for 29 days(@2.75% as per bank offering for upto 29 days),
3)so final interest in this case would be 1.75% of amount withdrawn per year/365 *29,let's say 1L withdrawn at 29th day then 2750/365*29=218.5rs..
4) so as per above comment interest in savings account is 3% and for fd upto 28 days is 2.75%,considering this, if you withdraw amount from fd before 29 days you'll lose 0.25%.,(for 1L in above example, i.e238-218.5=19.5rs)
Hope this answers your query completely..

Yes, this is what I too thought the calculation works. so one is certainly better off with the balance continuing in savings account for most interest rate buckets. and if you do have a 1 year horizon, there are certainly better deployment options than a HDFC FD at 5.5% pre-tax. Removing the auto-sweep is certainly sensible.

 

[Wealth is my birth right!]

Heard

See,
According to me auto sweep is only beneficial for 0 balance accounts.
I'll explain you with example:
Let's consider whenever the balance in the savings account goes above 50k the balance above 50k automatically get converted into an FD.
Thus if you deposit 2L into your account 50k remains in the savings account and the rest 1.5L gets converted into an FD.
Now if you make a payment of 1L then 50k from savings account will be utilised and 50k will be withdrawn from the FD. Thus your payment of 1L was made and now there's remaining 1L in savings account in form of FD.
The problem starts now, as you made a payment of 1L the whole 50k from savings account was utilised along with 50k from FD.
Now considering the savings max account in HDFC which has mab of 25k you account would now start attracting non maintenance charges as you savings account balance is zero.
And the FD for auto sweep will be liquidated only for processing the payment of amount more than the savings account has, not to compensate with the savings balance falling below the required mab which in this case is 25k.

Heard somewhere that if a savings max account holder maintains a 1.5 lac fd in the account then no worries to maintain that 25k or no need to get confused with sweep in out and all.
Is it true anyone enjoying here such a privilege?
Bcos as of now that 1.5 lac fd will fetch easily more than 6% per annum and one can happily enjoy free debit card without maintenance of minimum balance

 

[SiddharthR]

SBI is good for Auto Sweep as many accounts are 0 balance & penalty is 0.5% only

 

[Rashya]

savingsmax account comes with automatic sweep in facility.

if i try to manually break the FD created by auto sweep out, it shows me a penalty of 1% due to premature break of fd.

but if i transfer the amount to my own account in another bank, then the sweep in will trigger and fd will be broken in units of 1 rupee.

does this transfer attract any penalty? i was thinking of using this method to break my fd without penalty.

Is automatic sweep facility comes by default with savings max account Or does the customer have preference to opt in/out?

 

[anonymuos]

What is the threshold for this auto sweep out-in on SavingsMax? I think it was some high amount like 1 lakh? Also they call it Money Maximizer facility: https://www.hdfcbank.com/personal/save/accounts/savings-accounts/money-maximizer

When I went to ask about it at my HDFC Branch for my SavingsMax, my RM made faces and said she had not even heard of anything called Auto sweep. I tried to explain but she kept confusing it with sweep-in against FD which is something entirely different and not like Auto sweep which is only for savings account. Finally when I used the words Money Maximizer, she got it and said "Sir to aisa bolo na". 😄🤦🏻‍♂️

Unfortunately, the "Minimum amount retained in Savings account post Sweep-out" according to above link is too high for SavingsMax. Other banks that have this facility, have it way too low (25,000 in SBI and 20,000 in Kotak).

SBI has 0.5% penalty, term deposit duration flexible, but despite turning it on, it never works reliably for me (SBI have only Weekly or Monthly sweep out option). Despite having sufficient balance, only sometimes SBI sends it for auto sweep, otherwise the money just lies dormant getting 2.75% savings account interest.

Kotak has 0% penalty (they call it ActivMoney) and the amount goes for auto sweep any day of the week but the term deposit is only created for 6 months, not 1 year, which is fine.

 

[Wealth is my birth right!]

What is the threshold for this auto sweep out-in on SavingsMax? I think it was some high amount like 1 lakh? Also they call it Money Maximizer facility: https://www.hdfcbank.com/personal/save/accounts/savings-accounts/money-maximizer

When I went to ask about it at my HDFC Branch for my SavingsMax, my RM made faces and said she had not even heard of anything called Auto sweep. I tried to explain but she kept confusing it with sweep-in against FD which is something entirely different and not like Auto sweep which is only for savings account. Finally when I used the words Money Maximizer, she got it and said "Sir to aisa bolo na". 😄🤦🏻‍♂️

Unfortunately, the "Minimum amount retained in Savings account post Sweep-out" according to above link is too high for SavingsMax. Other banks that have this facility, have it way too low (25,000 in SBI and 20,000 in Kotak).

SBI has 0.5% penalty, term deposit duration flexible, but despite turning it on, it never works reliably for me (SBI have only Weekly or Monthly sweep out option). Despite having sufficient balance, only sometimes SBI sends it for auto sweep, otherwise the money just lies dormant getting 2.75% savings account interest.

Kotak has 0% penalty (they call it ActivMoney) and the amount goes for auto sweep any day of the week but the term deposit is only created for 6 months, not 1 year, which is fine.

Hdfc employees always focused on sales targets and lesser knowledge about products anyways at end of day everyone needs survival
Coming back to sweep system even our IPPB have that feature if we have 2lac above balance in the digital account it will be moved to linked savings account by 8pm auto so pvt banking systems can do a lot in this domain

 

[skvignesh]

Heard

Heard somewhere that if a savings max account holder maintains a 1.5 lac fd in the account then no worries to maintain that 25k or no need to get confused with sweep in out and all.
Is it true anyone enjoying here such a privilege?
Bcos as of now that 1.5 lac fd will fetch easily more than 6% per annum and one can happily enjoy free debit card without maintenance of minimum balance

Yes you can maintain 1.5L or 1L FD acc to location to avoid MAB charges..

Not 6% per annum for FDs, you can cancel FD sweep facility

 

[Wealth is my birth right!]

Yes you can maintain 1.5L or 1L FD acc to location to avoid MAB charges..

Not 6% per annum for FDs, you can cancel FD sweep facility

Ok for me it’s metro so 1.5 and I created by mobile app for 5 yrs auto renewal is it required to do anything more or just I can leave like that and withdraw my 25k whenever required
I should not get penalized
Thanks for sharing the info

 

[skvignesh]

Ok for me it’s metro so 1.5 and I created by mobile app for 5 yrs auto renewal is it required to do anything more or just I can leave like that and withdraw my 25k whenever required
I should not get penalized
Thanks for sharing the info

Yes my RM said you can maintain FD no need to maintain MAB.. if you have Doubt email cus care or confirm with RM for safety...

 

[SiddharthR]

Coming back to sweep system even our IPPB have that feature if we have 2lac above balance in the digital account it will be moved to linked savings account by 8pm auto so pvt banking systems can do a lot in this domain

Actually that's not the feature, and it is thier necessity as RBI allows Payments Bank to keep balance upto ₹2 Lakhs only...
Above which is sweeped to FD with other bank

 

[Wealth is my birth right!]

Yes my RM said you can maintain FD no need to maintain MAB.. if you have Doubt email cus care or confirm with RM for safety...

Thanks i will do that writing to cc
I won’t call RM bcos I will be pressured for life insurance haha

 

[thekirang]

I fall in rural/semiurban area.
If I opend hdfc saving max with 1L fd. (For rural fd amount is 1L only)

So there will be no MAB criteria..

Do I get interest of fd on same 1L ?

Now keep fd aside.

1) Now I deposit 20,000 for saving then what will be interest rate ??

2) if i turn on money maximiser फॅसिलिटी for balance above 20,000 how will it work..?

 

[FinoGuy]

I fall in rural/semiurban area.
If I opend hdfc saving max with 1L fd. (For rural fd amount is 1L only)

So there will be no MAB criteria..

Do I get interest of fd on same 1L ?

Now keep fd aside.

1) Now I deposit 20,000 for saving then what will be interest rate ??

2) if i turn on money maximiser फॅसिलिटी for balance above 20,000 how will it work..?

Yes interest same on 1L.
1lAny amount in savings account will fetch at per sb account rate 2.5-3%.
2) it'll be auto-FD'ed automatically system will create fds in 1k multiples