Diffrence between FD'R and Sweep In

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This query is : Resolved

Quick Summary

Fixed Deposit Receipts (FD'R) and Sweep In accounts both involve earning interest, but they differ in flexibility. A standard FD is fixed, while a Sweep In facility allows you to withdraw funds as needed, with interest calculated only on the amount and duration you've used. TDS (Tax Deducted at Source) is applicable to the interest earned from both types of accounts, based on its nature.

Daya

Daya (Querist)

19 September 2023 what are difference between
FDR's and Sweep In.
is TDS applicable on both interest received.

RAJA P M

RAJA P M (Expert)

19 September 2023 TDS is applicable in both of interest as per nature.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

28 September 2023 FDR - This is Fixed Deposit Receipt
Sweep In - Generally means the FD created is not a static and rather flexible which we can pull out money as and when required

There will a SWEEP IN entry each time we withdraw amount from such FD and we will be paid interest for that amount for the no of days we have kept with bank. Yes TDS will be deducted on any such interest credits as applicable

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