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Using FD amount for IPO application???

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Deal Subedar
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Some banks have extra Sweep in and Sweep out facility in FDs. In this an automatic transfer of funds above certain limit from savings account goes to term deposit for a specific period and in case of insufficient balance in the CA/SB account, the required amount will be transferred back by breaking deposits.

Some Banks allow us to use this facility  for IPO application also. This gives an advantage over the regular saving accounts as FDs interest rates are higher.

Some of the Banks which have this facility in FDs (every bank have different name):

ICICI Bank (Money Multiplier or linked FDs)
Yes Bank
Indusind
Kotak Active money
Hdfc
AU Bank

Out of these for Yes Bank I have confirmation (from @anshu) that if We have an amount in FD then IPO can be applied.

For HDFC Bank, I myself have tried and was not able to apply for IPOs.

Can you confirm for other banks also if you have any info??
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Deal Newbie Deal Newbie
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Icici money multiplier also allowing to apply ipo without debit 

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Deal Cadet Deal Cadet
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Which account FD facility for IPO will be best?

Deal Subedar Deal Subedar
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Till now we only have confirmation for Yes Bank that the FD amount is eligible for IPO application.
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Deal Subedar Deal Subedar
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Update: Tried Kotak ActivMoney, It is working for IPO. After Kotak ActivMoney activation saving account Balance above 25K automatically gets converted to FD in 5k multiple. When balance in the saving account gets below 10k then some amount from FD is transferred back.

I have zero balance Kotak 811 account and this facility is available to me. Interest rates in ActivMoney will be the same as FD rates based on the FD time period.

Deal Hunter Deal Hunter
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You need to maintain 20k in savings account for linked fd in Kotak 811. Or linked fd balance will get broken prematurely. 

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Deal Cadet Deal Cadet
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I have axis ASAP Digital A/c.  I applied using Saving account linked FD ( Kind of Flexi deposit )  Pls note.  Once u approve the mandate the amount gets deducted from FD ( partial premature happens) at the time of application itself.   And once the allotment gets denied the amount is credited back the account and debited from my savings account for a new FD. 

Hence i suggest do not use FD amount. 

Deal Subedar Deal Subedar
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For kotak activemoney, it doesn't works as u have described. After approving the mandate FD is not broken, after allotment only it will be broken.

Deal Subedar Deal Subedar
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ar IPO lg gya to fd ke *** 😄

Deal Subedar Deal Subedar
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U will get the interest amount for the period FD was active.

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Deal Newbie Deal Newbie
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Icici money multiplier also allowing to apply ipo without debit 

Finance Ninja Finance Ninja
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Hey bro check DM please.

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Post Mogul Post Mogul
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any similar kind of fd in rbl?
Deal Newbie Deal Newbie
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Can hdfc providing this facility?

Deal Subedar Deal Subedar
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did you read the complete post?

Shopping Friend Shopping Friend
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ICICI normal fixed deposit works too right?

replyuser
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