Features
- ActivMoney is an exciting combination that gives you the benefit of high FD-wala interest in your Savings Account & the flexibility to access your funds anytime.
- Use the available balance in your savings account plus the FD for any purpose – ATM cash withdrawals, cheque issuance, online shopping, etc.
- By default, FD will be created for a tenure of 180 days in case of Savings Account (91 days for Current Account). The interest on the FD is paid as simple interest
- FDs will be created and broken in multiples of ₹5,000 for new ActivMoney registrations w.e.f 5th July’23. For ActivMoney registrations before 5th July'23, Fds will continue to be made in 10,000 but will be broken in multiples of Rs 5,000
- No penalty** is levied on premature withdrawal of FDs created through the ActivMoney facility
*For deposits above 7 days. T&C apply
**While there is nil penalty on premature withdrawal as contracted tenor of FD is 180 days, very early premature withdrawal like 45 days or before at times may result in interest earnings on FD lower than savings bank account interest
Here’s how ActivMoney works
Let’s say you have a Kotak Everyday Savings Account and you opt for ActivMoney facility. The default ActivMoney Sweep out threshold for Everyday Savings Account variant (Non Privy) is ₹50,000/- and the Sweep in threshold is Rs.25,000/-.
When the savings account balance exceeds ₹50,000, the balance amount above the threshold value will automatically sweep out (be transferred) to a 180-day Fixed Deposit, in multiples of ₹5,000*.
When your savings account balance goes below the defined sweep-in threshold, which is ₹25,000 for Everyday Savings Account variant (Non Privy), funds will automatically be transferred back in multiples of ₹5,000 (sweep in) from your ActivMoney Fixed Deposit to your savings account, ensuring your account maintains the minimum required balance. This process is seamless and there will be no penalty, even if the Fixed Deposit is broken prematurely.
Please note that premature withdrawal of the Fixed Deposit in less than 45 days may result in interest earnings of ActivMoney Fixed Deposit being lower than the savings bank account interest.
Here’s an example:
Summary of Account Balance at the End of the Day
|
|
Sweep Out - 50,000
Sweep In - 25,000
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Savings/ Current Account Balance
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Fixed Deposit Balance
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Total Available Balance
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Day 1
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You have a balance of Rs.1 lakh in your account with the defined threshold (minimum amount to stay in your Savings account) of Rs.50, 000. At the end of the day, Rs. 50,000 is moved to an auto-created fixed deposit of 180 days at the at the prevailing rate
|
Opening balance
1,00,000
End of the day
50,000
|
0
50,000-Dep 1
|
1,00,000
|
Day 2
|
Credited another Rs.25,000 in account
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Opening Balance
50,000
End of the day
50, 000
|
50,000 – Dep1
25,000 -Dep2
|
1,25,000
|
Day 17
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Cheque for Rs.40,000 presented in clearing
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Opening Balance 50,000
End of the day
25,000
|
50,000-Dep1
10,000-Dep2*
|
85,000
|
Note: *The ₹40,000 gets transferred from Savings Account and ₹10,000 becomes the new balance. To maintain the account balance equivalent to sweep in threshold of 25,000/-, the Deposit-2 is broken partially and ₹15,000 gets transferred from ActivMoney Fixed Deposit to the account (Fixed Deposit is broken in multiples of ₹5,000). Making ₹25,000 as the new balance in Savings Account.
Fixed Deposits will be created and broken in multiples of ₹5,000 for new ActivMoney registrations w.e.f 5th July’23.
For ActivMoney registrations before 5th July'23, Fixed Deposits will continue to be created in multiples of ₹10,000 but will be broken in multiples of ₹5,000.