Auto Sweep: Example of Axis & HDFC Bank Comparison

Continuing further from previous article Auto Sweep-in Sweep-out accounts: Beware of conditions and restrictions, here is a comparative analysis of 2 common banks offering the Auto Sweep/ Flexi Deposit/ Super Saver schemes.

What are the different kinds of Flexi Deposits / Auto Sweep Fixed Deposits Schemes available?
Differnt Banks offer different versions of these flexi deposit saving schemes with different conditions. Here, I'm quoting examples of two popular banks with whom I've used this Auto Sweep or Flexi Fixed Deposit scheme. However, before taking a decision on which bank and which flexi auto-sweep service you wish to go for, please check the details with the bank as rules might have changed.

Axis Bank Encash 24- offers everything automatic with just one time sign-up but conditions are a bit restricting.
- Minimum threshold amount is fixed at Rs. 25,000
- You need declare the tenure of your FD - it cannot be changed everytime for every FD
- FD's will be created ONLY in multiples of 5,000 above the threshold amount
- FD's will be created ONLY on specific days - say Mondays only
- You wont get any paper receipt for your FD, it will be visible only online

Benefit offered by Axis bank - after the one time sign-up everything is automated. Say if you set your threshold at 25,000 and 1 year maturity, the moment your savings bank accout balance reaches 30,000, the next Monday the FD will be created automatically for Rs. 5,000.
This option will suit account holders who do not want to do the manual work on their own every now and then and are OK with pre-defined tenure and limits on threshold and restriction of 5000 multiple.

Flexi Deposits / Auto Sweep Fixed Deposits Example

HDFC Bank Super Saver Facility - Offers same facility, but requires an account holder to do everything on his own. However, the big benefit is that the account holder can select everything while creating the FD online and is not restricted.

- You login to the online banking account site
- Saving Bank needs 10,000 minimum balance (AQB). You can create an FD of any amount above this amount.
Icing on the cake - if you have a FD of 50,000 or more, then you can maintain zero balance in your savings account. So even that 10K is not required in savings account once you create a 50K FD. entire amount can earn high interest. (Please check if this scheme is still valid)
- You can create FD's in any amounts, no restriction like multiple of 5,000
- You can select the tenure of each individual FD's. This is really beneficial because HDFC bank offers a bit higher interest (0.25% or 0.5%) on odd maturities like 1 year 16 days, 1 year 17 days and so on, compared to that offered on standard like 1 year maturity
If you use it effectively, you can get the best
- Once you create the standard Fixed Deposit, you then need to take the Super Saver on that. It's a one step process and is done online.
- You get receipt of your Fixed Deposit at your address

So if you track your bank balances frequently, and are OK to spend 5-10 minutes to create effective highEST interest offering flexi deposits, then HDFC bank will be a good option.
If you cant do such daily tracking of money and dont want the hassles of doing things on your own online, then Axis Bank is a good option, but it comes with the above mentioned restrictions.

There are more banks offering this unique service, check out List of Banks offering Flexi Deposits / Auto Sweep Fixed Deposits