HDFC Savings Account Auto Sweep Interest Rate Calculator

HDFC Auto Sweep Formula:

\[ A = P \times (1 + R / 4)^{4 \times T} \]

Maturity Amount (A):

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1. What is HDFC Auto Sweep Savings Account?

HDFC Auto Sweep Savings Account is a feature that automatically transfers excess funds above a specified threshold into fixed deposits, allowing customers to earn higher interest rates while maintaining liquidity.

2. How Does the Calculator Work?

The calculator uses the HDFC Auto Sweep formula:

\[ A = P \times (1 + R / 4)^{4 \times T} \]

Where:

\( P \) — Principal amount (INR)
\( R \) — Annual interest rate (decimal)
\( T \) — Time period (years)
\( A \) — Maturity amount (INR)

Explanation: The formula calculates quarterly compounded interest for HDFC auto sweep savings accounts, where interest is compounded four times per year.

3. Importance of Auto Sweep Calculation

Details: Accurate calculation helps customers understand potential returns, optimize their savings strategy, and make informed decisions about fund allocation between savings and fixed deposits.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate in decimal form (e.g., 0.05 for 5%), and time period in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum balance required for HDFC Auto Sweep?
A: The minimum balance requirement varies by account type, typically starting from ₹10,000 to ₹25,000 for the auto sweep feature to activate.

Q2: How frequently is interest compounded in HDFC Auto Sweep?
A: Interest is typically compounded quarterly (every 3 months) for auto sweep fixed deposits.

Q3: Can I break the auto sweep fixed deposit prematurely?
A: Yes, HDFC allows premature withdrawal of auto sweep fixed deposits, though applicable penalties may apply as per bank policies.

Q4: What are the current interest rates for HDFC Auto Sweep?
A: Interest rates vary based on deposit tenure and are subject to change. Please check HDFC's current rates on their official website or at your branch.

Q5: Is there any tax implication on auto sweep interest earnings?
A: Yes, interest earned is taxable under Income Tax Act, and TDS may be deducted if interest exceeds specified limits as per prevailing tax laws.