ActivMoney, also known as Flexi Fixed Deposit, is a digital savings account facility offered by the Bank to all Kotak customers. This facility allows customers to automatically transfer surplus funds above a specific threshold (?25,000) in their bank account into a fixed deposit and earn FD like higher interest rates (up to 7%*).
On average, regular savings accounts will earn interest at about 3-3.5%*, but ActivMoney can help you earn twice as much. Are you looking for more information about ActivMoney? Learn more about its top features and benefits in the following sections.
Key features of higher interest rates, no lock-in period and zero penalty on premature withdrawal should be highlighted upfront.
Automatic Transfer
Surplus funds from your savings account will automatically transfer to a linked FD account whenever the account balance crosses the specified threshold. This amount will earn FD-like interest for a specified period, while remaining an active part of your savings account. If you need to use the money, you can do so whenever, at no charge. This way, you don't need to visit your bank branch to create FDs when you have extra money to put to use. The FDs are booked in multiples of ?5,000.
Higher interest rates
When you activate the ActivMoney feature with your Kotak811 Savings Account, you can earn up to 7%* per annum interest on the amount above the threshold limit instead of letting the balance lie idle in your bank account even when you are not using it. Consequently, you can grow your savings more quickly by transferring the surplus amount into an ActivMoney fixed deposit.
The flexibility of a savings account
Although the ActivMoney facility creates a fixed deposit from your extra money, it does not block your funds with a lock-in period. You can continue using your money with the same liquidity level as a savings account and still earn a higher interest rate equal to a fixed deposit.
Must Read: How To Apply For ActivMoney
Threshold limit
At Kotak811 Account, the required threshold limit is ?25,000. That means whenever your savings account balance goes above ?25,000, it gets converted into an FD in multiples of ?5000, and you start earning an FD-equivalent interest rate, which is higher than that of a savings account.
FD tenure
The FD tenure for an ActivMoney savings account fixed deposit is 180 days. That means the fixed deposit the bank creates with your surplus funds will earn FD-equivalent interest rates for that tenure. It will renew once the FD tenure ends, and a new FD interest rate will be applicable.
Must Read - Different Types of Savings Bank Accounts
If you already have a Kotak811 Savings Account, you can activate the ActivMoney feature by subscribing online, through the App or by calling customer service. If not, you can open a Kotak811 Savings Account in minutes. With ActivMoney, your surplus balance will earn like an FD while allowing you the full freedom of a savings account. So, get started and activate your savings to get back more with ActivMoney.
*T&C Apply
View ActivMoney Terms and Condition
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This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. ("Bank") or its employees. Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empanelled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees, and contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.
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