Understanding sweep in deposits

[thomas.lunakutty]

Ok, so I have been Googling quite a bit, and everyone says "If you need money that's not in savings account but in FD, the FD gets broken and deposited into savings" .. ok fine, but when does the reverse happen?

Let's start with my ICICI account. I use it for all UPI transactions etc. It has currently has 70 k in it.

The money multiplier page just says "How much do you want to invest? Min Rs. 5k, and in multiples of 5k thereafter"

I am assuming if I open a 5k FD, and I am scanning a QR code for 68k, the FD is broken because savings only has 65k. Is this assumption correct? And can I scan this QR code in any app, like if I scan a QR code from Google Play or Paytm, and choose ICICI as the bank account for the transaction, will the FD still be broken, or do I have to go through ICICI's own iMobile app?

Next, is there an "upper" threshold? Meaning, if the "upper threshold" is 30k, then the fact that I have 70k means does it automatically open 8 FDs of 5k each , leaving behind 30k (the upper threshold) back? Or is the process of "creating" FDs not automatic, only the process of "breaking" FDs automatic?

Every single blog/ article/ tutorial on sweep in FDs only talks about automatic breaking on demand. I am looking to see if there's any bank at all (not necessarily ICICI by the way) that automatically creates. Meaning, I set an upper threshold (example: 30k) and FD value (example: 5k), and as soon as my bank account hits 35k , it automatically creates a FD?

 

[DealHunter786]

Ok, so I have been Googling quite a bit, and everyone says "If you need money that's not in savings account but in FD, the FD gets broken and deposited into savings" .. ok fine, but when does the reverse happen?

Let's start with my ICICI account. I use it for all UPI transactions etc. It has currently has 70 k in it.

The money multiplier page just says "How much do you want to invest? Min Rs. 5k, and in multiples of 5k thereafter"

I am assuming if I open a 5k FD, and I am scanning a QR code for 68k, the FD is broken because savings only has 65k. Is this assumption correct? And can I scan this QR code in any app, like if I scan a QR code from Google Play or Paytm, and choose ICICI as the bank account for the transaction, will the FD still be broken, or do I have to go through ICICI's own iMobile app?

Next, is there an "upper" threshold? Meaning, if the "upper threshold" is 30k, then the fact that I have 70k means does it automatically open 8 FDs of 5k each , leaving behind 30k (the upper threshold) back? Or is the process of "creating" FDs not automatic, only the process of "breaking" FDs automatic?

Every single blog/ article/ tutorial on sweep in FDs only talks about automatic breaking on demand. I am looking to see if there's any bank at all (not necessarily ICICI by the way) that automatically creates. Meaning, I set an upper threshold (example: 30k) and FD value (example: 5k), and as soon as my bank account hits 35k , it automatically creates a FD?

Check out Kotak ActivMoney.. it breaks/creates automatically!

 

[thomas.lunakutty]

Yeah I just looked up Kotak Active Money, they make the concept of "threshold beyond which FD will be created" very clear. Cool

Too bad though, there's no Kotak branch close to where I live and the ICICI account is my primary account, not really particular on changing it or closing it or whatever.

But thanks though, useful information to have.

 

[Rishabh]

Axis bank provides the Sweep facility as well to create FD automatically.

 

[helloworld]

Can you summarize what you really want to know?

- know more about these auto sweep-in, and how it works? or
- banks providing these facilities.?

also, since you mentioned no Kotak branch, it really helpful to others if you provide available banks in your loaction, so can suggest sweepins in those accounts.

also, all sweep-ins or active money or money maximizer or MOD ot whatevr the name those banks call it all are automatic (both creating and breaking fds).

nothing really changes compared to savings that we see everyday, just backend they do these and provide somewhat slightly high interest rate.

 

[AritraSaha]

Ok, so I have been Googling quite a bit, and everyone says "If you need money that's not in savings account but in FD, the FD gets broken and deposited into savings" .. ok fine, but when does the reverse happen?

Let's start with my ICICI account. I use it for all UPI transactions etc. It has currently has 70 k in it.

The money multiplier page just says "How much do you want to invest? Min Rs. 5k, and in multiples of 5k thereafter"

I am assuming if I open a 5k FD, and I am scanning a QR code for 68k, the FD is broken because savings only has 65k. Is this assumption correct? And can I scan this QR code in any app, like if I scan a QR code from Google Play or Paytm, and choose ICICI as the bank account for the transaction, will the FD still be broken, or do I have to go through ICICI's own iMobile app?

Next, is there an "upper" threshold? Meaning, if the "upper threshold" is 30k, then the fact that I have 70k means does it automatically open 8 FDs of 5k each , leaving behind 30k (the upper threshold) back? Or is the process of "creating" FDs not automatic, only the process of "breaking" FDs automatic?

Every single blog/ article/ tutorial on sweep in FDs only talks about automatic breaking on demand. I am looking to see if there's any bank at all (not necessarily ICICI by the way) that automatically creates. Meaning, I set an upper threshold (example: 30k) and FD value (example: 5k), and as soon as my bank account hits 35k , it automatically creates a FD?

Will recommend two bank for this..

Kotak activmoney

Indie sweep out

 

[Ecoli8]

Ok, so I have been Googling quite a bit, and everyone says "If you need money that's not in savings account but in FD, the FD gets broken and deposited into savings" .. ok fine, but when does the reverse happen?

Let's start with my ICICI account. I use it for all UPI transactions etc. It has currently has 70 k in it.

The money multiplier page just says "How much do you want to invest? Min Rs. 5k, and in multiples of 5k thereafter"

I am assuming if I open a 5k FD, and I am scanning a QR code for 68k, the FD is broken because savings only has 65k. Is this assumption correct? And can I scan this QR code in any app, like if I scan a QR code from Google Play or Paytm, and choose ICICI as the bank account for the transaction, will the FD still be broken, or do I have to go through ICICI's own iMobile app?

Next, is there an "upper" threshold? Meaning, if the "upper threshold" is 30k, then the fact that I have 70k means does it automatically open 8 FDs of 5k each , leaving behind 30k (the upper threshold) back? Or is the process of "creating" FDs not automatic, only the process of "breaking" FDs automatic?

Every single blog/ article/ tutorial on sweep in FDs only talks about automatic breaking on demand. I am looking to see if there's any bank at all (not necessarily ICICI by the way) that automatically creates. Meaning, I set an upper threshold (example: 30k) and FD value (example: 5k), and as soon as my bank account hits 35k , it automatically creates a FD?

Your first assumption is correct. If you've already done a sweep-in of 5k from your sb account of 70k (now with bal 65k) and then you do a txn of any amount >65k, <70k, the FD will break and feed the sb acc with the 5k+acquired interest amt. Your txn will be like any other normal txn. No caps.

For the 2nd part also your assumption is correct. It is basically an auto-sweep facility, where you predefine a threshold limit (like the 30k) and also the sweep amt (like the 5k). This simply means: Whenever the amt in my sb acc goes over and above 30k, make FDs of 5k each, such that after creating a FD, the sb acc bal should be atleast 30k. In this case also, if you do any txn within the total avl bal (sb + all sweep-in FDs), the txn will be like any normal txn, the FDs will break and feed your SB.

However, if you have more than one sweep-in FDs, the normal policy is to follow first-in-first-out policy, but it can differ with banks. For your bank it's best to confirm your base branch.

All banks provide auto sweep facilities, but I don't have any ideas about SFBs.

Hope it helps.