@S.B JAIN Yes. You will get FD interest during blocked period also. Your FD will break only if you got allotment. And then also first ideal money in your saving account will be deducted then only FD breaks upto balance required.
My personal suggestion is that make FD of 180 days in Kotak so if it breaks NO PENALTY will be there. And at present it gives 7% (for Senior citizen 7.5%) interest.
@Royal Shiva 👑 sir it is always make Linked FD more benefited than Auto sweep in facilities, if bank allows to apply IPO through Linked FD. If bank does not allowed to apply in IPO through Linked FD then only Auto sweep option should select. Reasons are
1) min threshold limit amount gets only savings interest which is very less
2) In auto sweep if FD breaks within 7 days , you will get nothing... not even savings interest also
3) Last created FD breaks first so if there are more chances that you will get nothing if it breaks within 7 days or you will get less interest as it breaks in small periods as it has less interest in initial days and that also got after deducting penalty of 1%.
Its very lengthy conversion but hope you understand my logic
Zerodha (Trading & Demat Account)
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