Earn FD like interest in your Savings Account with ActivMoney

About    How it works   Features   Terms and Conditions   

What is ActivMoney?

ActivMoney is a sweep in sweep out facility that gives you exciting benefits of a higher FD like interest rate & flexibility to access your funds anytime with your savings/current account.

The ActivMoney facility automatically transfers funds above a default threshold into a Fixed Deposit, earning you higher interest.

Features

• Enjoy total control over your funds: The available balance for utilization (including withdrawal in ATMs, cheque issuance, online purchases, etc.) in your account is the threshold balance in your savings account + total principal amount of Fixed Deposit(s) created through ActivMoney. (Study the illustration below for a better understanding)
• Earn applicable interest on the money in your savings account till it is swept into a Fixed Deposit with ActivMoney 
• Only the principal amount of the Fixed Deposit will be considered for the sweep-in facility as interest is settled on the maturity of the deposit
• A Fixed Deposit needs to be active for a minimum period of 7 days to earn interest
• FDs made through the ActivMoney facility will be created for the tenure of 180 days with the maturity instruction as transfer to the account. Hence, the interest paid on these FDs is simple interest.
• FDs made through the ActivMoney facility will be created as well as broken in multiples of Rs.10,000/- unless specified. 
• No penalty on pre-mature withdrawal of these FDs since the FDs made through ActivMoney are for a tenor of 180 days.
  
  

Here’s how ActivMoney works

Let’s say you have a Kotak Edge Savings Account and you opt for the ActivMoney facility.

The default ActivMoney threshold for your savings account is Rs.25,000.

Now in case your savings account balance is more than the threshold of Rs.25,000 at the end of the day, the excess amount will automatically get transferred in multiples of Rs.10,000 to a 180 day FD. You will then earn the prevailing FD rate on the balance that has been transferred to the FD. As this FD is linked to your savings account, you can access the funds whenever you wish to, with no penalty charges.

In case you are falling short of funds in your savings account, you need not worry as the deficit will be withdrawn from your FD automatically. 

What’s more? There are no premature withdrawal charges on this Fixed Deposit, thus helping you save up on that as well. 

Here’s an example:

*Liquidated Deposit2 of Rs.30,000 and deposit1 liquidated in part for Rs.10,000 to honor the cheque of Rs.40, 000 as breaking of FD is done in multiples of Rs.10, 000. Deposit2 will earn interest for 15 days at the applicable rate without penalty as it exceeds 7 days which is the minimum period required to be eligible for interest and Rs.10000 liquidated from Deposit1 would earn eligible interest for 16 days.

Terms and Conditions

• For FDs made through the feature of ActivMoney (2 way sweep deposits) Regular Fixed Deposit rates will be applicable for all customers including Senior Citizens / Bank Staff
• As per the Terms & Conditions of the bank for premature withdrawal, interest will be paid at the rate prevailing on the date of deposit for the tenure the deposit or the withdrawn amount remained with the bank or at the contracted rate, whichever is lower. 
• PAN is mandatory for availing ActivMoney facility
• ActivMoney facility can be provided to both resident savings and current account customers.
• ActivMoney facility cannot be provided to:
  • Non-Resident customers
  • Current or Savings account where already Linked FD Facility/ One Way Sweep facility is linked
  • Current or savings account where overdraft facility is availed
  • Any other accounts where the feature of Active Money has been disabled at the time of the creation
• Sweep in facility is activated on FDs booked through the ActivMoney feature, overdraft facility cannot be given
• In case of a Resident customer who is becoming a Non-Resident and availing of this facility, linked sweep in FDs will continue, however, the ActivMoney facility will be deactivated
• In case of an FD created through the ActivMoney feature, the nomination made by the customer in respect of the savings / current account for which this feature is availed will be deemed to be the nomination for any FD created according to the ActivMoney feature availed
• In case the balance in the linked account goes below the Sweep in threshold balance, funds will be transferred from the linked FD in multiples of Rs.10,000/-
• FDs made through the feature of ActivMoney will be liquidated on a LIFO basis i.e. Last in First out; the latest deposit is closed first to maximize returns on your deposit portfolio
• All other terms and conditions concerning regular fixed deposit will be applicable

Please Note:

• FD advice will not be issued for deposits booked through the ActivMoney facility
• Sweep out is a threshold (balance in the account above which balance is transferred to Sweep FD)
• Sweep In is a threshold (balance in the account below the threshold amount will be transferred from FD to account, incl. maintenance of AMB/AQB)

To know more about ActivMoney facility for Current Account click here