If you have a savings account in HDFC Bank, here’s important news you shouldn’t miss. The bank has updated its minimum balance rules for 2026, and at the same time, introduced a new Fixed Deposit (FD) option that can help customers avoid penalty charges while still earning interest. Let’s understand what’s changed, how much balance you need to maintain, and how this new FD plan can work in your favor.
Updated Minimum Balance Rules for 2026
HDFC Bank requires customers to maintain an Average Monthly Balance (AMB) depending on the type and location of the branch. If the balance falls below the required amount, a non-maintenance charge is applied.
Here’s a quick summary of the minimum balance requirement across account types:
| Branch Type | Minimum Average Monthly Balance (AMB) | Penalty for Non-Maintenance |
|---|---|---|
| Metro / Urban | ₹10,000 | ₹150 to ₹600 + GST |
| Semi-Urban | ₹5,000 | ₹150 to ₹300 + GST |
| Rural | ₹2,500 | ₹75 to ₹150 + GST |
If your account consistently falls below these limits, HDFC Bank may downgrade or restrict your account features.
What’s New in 2026?
In 2026, HDFC Bank has introduced a “Smart Sweep FD Option” — a flexible scheme that automatically converts excess savings account balance into a short-term Fixed Deposit (FD). This ensures your money earns interest without affecting your minimum balance requirement.
How the Smart Sweep FD Works
- If your account balance exceeds a set threshold (for example ₹25,000), the surplus amount is transferred into an FD automatically.
- You can choose the threshold amount and FD tenure (usually 1 year).
- When your account balance drops below the required limit, the FD automatically breaks in parts to maintain your minimum balance.
This feature helps account holders avoid penalties while still earning FD-level interest (currently between 6.5%–7.25% p.a., depending on tenure).
Who Should Opt for This Scheme?
The Smart Sweep FD is best for:
- Salaried individuals who maintain regular inflows.
- Customers who want to avoid minimum balance fines.
- Users looking for liquidity and higher returns without locking up funds completely.
How to Activate Smart Sweep FD
You can enable this facility through:
- HDFC Bank NetBanking
- Mobile Banking App
- Visiting your nearest HDFC branch
Once activated, the feature works automatically — no manual transfers needed.
Key Benefits
- No Penalty: Keeps your balance above the minimum automatically.
- Extra Earnings: FD interest on idle savings.
- Flexibility: Automatic break and reinvest system.
- 24×7 Access: Withdraw anytime without losing all FD interest.
Example
Suppose your account requires a ₹10,000 minimum balance. You maintain ₹50,000. The system automatically creates an FD for ₹40,000. Later, if your balance drops below ₹10,000, a part of the FD is liquidated to restore the minimum balance — no penalty applies, and you still earn interest on the remaining FD.
Conclusion
The new HDFC Bank Smart Sweep FD option in 2026 is a game-changer for account holders struggling with balance maintenance. It ensures you never fall below the required limit and helps your money grow passively. So, if you want to avoid charges and earn more, enabling the Smart Sweep FD is a smart move this year.
Disclaimer: This article provides general banking information for awareness purposes. Please verify specific details and eligibility with HDFC Bank’s official website or branch before applying.
