Earn up to 6.50%* Interest with Kotak ActivMoney Savings Account

What is ActivMoney?

Kotak ActivMoney is an auto sweep facility that lets your money work for you by earning FD-wala interest on your idle funds. It gives you the flexibility to access your funds anytime without any penalty.

With this facility, the excess amount in your savings/current bank account, above a predetermined threshold, is automatically transferred into a Fixed Deposit so you can earn higher interest.

FD like interest

Enjoy the benefit of up to 6.50%* interest p.a.

No lock-in

Access your funds whenever you need them

Flexible Withdrawal

No penalty on premature withdrawal

Features

ActivMoney is an exciting combination that gives you the benefit of high FD-wala interest up to 6.50%* p.a. and 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 Edge Savings Account and you opt for ActivMoney facility. Then the default threshold here for Edge Savings Account variant (Non Privy/Private Banking) is ₹25,000/-.

If your savings account balance exceeds ₹25,000, the additional amount will be transferred to a 180-day FD, in multiples of ₹5,000*.

When your savings account balance dips below the set threshold, the shortfall is automatically compensated from your FD. This way, you will pay zero penalty on premature withdrawal.

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 an example:

Summary of Account Balance at the End of the Day
		Savings/ Current Account Balance	Fixed Deposit Balance	Total Available Balance
Day 1	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.25, 000. At the end of the day, Rs. 75,000 is moved to an auto-created fixed deposit of 180 days at the prevailing rate of 6.50%.	Opening balance 1,00,000 End of the day 25,000	0 75,000-Dep 1	1,00,000 1,00,000
Day 2	Credited another Rs.25,000 in account	Opening Balance 25,000 End of day Balance 25, 000	75,000 – Dep1 25,000 -Dep2	1,25,000
Day 17	Cheque for Rs.40,000 presented in clearing	Opening Balance 25,000 End of day Balance 25,000	60,000-Dep1* Dep2-liquidated*	85,000

*Liquidated Dep2 for Rs. 25, 000 and liquidated in part for Rs.15, 000 from Dep1 to honour the cheque of Rs.40, 000 as breaking of FD is done in multiples of Rs.5, 000. Dep2 will earn interest for 15 days at the applicable rate without penalty (on LIFO basis) as it exceeds 7 days which is minimum period required to be eligible for interest and Rs.10000 liquidated from Dep1 would earn eligible interest for 16 days. In the above scenario, due to early premature withdrawal, the interest earned on Dep 1 & Dep 2 at times would be lower than savings 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

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 i.e. Benefit of additional interest rate on deposits on account of being bank’s own staff or Resident senior citizen Individual (Age 60 years & above) shall not be applicable to Fds made through ActivMoney (2 way sweep deposits)
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.
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
PAN is mandatory for availing ActivMoney facility
ActivMoney facility can be provided to both resident savings and current account as well as non-resident customers.
In case of NRO / Resident FD, no interest will be paid if the fixed deposit is prematurely withdrawn before completion of 7 days
Fds made through the feature of ActivMoney will be created with maturity instruction as ‘Do Not Renew’
NRE Deposit will be booked for 1 year of tenure. No interest is payable on NRE Fixed Deposits held for less than 1 year.
ActivMoney facility cannot be provided to:
- Self-operated minor accounts
- 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.5,000/-*
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
A new Form 15G/15H must be submitted for all existing FD (including FDs created through ActivMoney)/RD at the beginning of the financial year, upon the renewal of FD (Including FDs created through ActivMoney)/RD, and whenever a new FD (Including FDs created through ActivMoney)/RD is booked.

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)
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

To know more about ActivMoney facility for Current Account click here

Frequently Asked Questions

What is a sweep in/sweep out threshold limit with respect to ActivMoney?

Sweep out threshold limit is an upper limit defined in the account above which balance is transferred to auto Fixed deposit which is linked to current/savings account

Sweep In threshold limit is the limit set in account below which funds from the linked auto fixed deposit will move to current/savings account.

What are the Sweep in/Sweep out threshold values for Savings and current A/cs variants for ActivMoney facility?

Please find below in detail the Sweep in/Sweep Out threshold values for savings and current A/Cs:

Type of account	Minimum Sweep in/out threshold value for new signup*
Edge & other equivalent savings account variants	Rs 25,000
Ace / Pro & other equivalent variants	Rs 50,000
Kotak 811 account	Rs 25,000 (Sweep out) Rs 20,000 (Sweep in)
All Salary Account variants	Rs 25,000
NRO & NRE Savings Accounts	Rs. 25,000 for all variants except Platina Rs. 2 Lacs for Platina NRO/ NRE Variants.
Accounts under Kotak Privy League programme	Rs 3 lacs
Accounts under Kotak Private Banking programme	Rs 5 lacs*
Current Account	More than or equal to 3 times the required Minimum balance requirement applicable as per the product variant OR Rs 50,000 whichever is higher

*Minimum Sweep in/out threshold value for accounts under Kotak private banking league will be revised to 5 lacs from 10 lacs for new ActivMoney registrations w.e.f 1st Aug’23. For ActivMoney registrations before 1st Aug’'23, Minimum sweep in/out threshold will continue to be Rs 10,00,000

Is Senior Citizen rate applicable on FDs created via ActivMoney Feature?

No. 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.

Do I get Fixed Deposit advice for fixed deposits created via ActivMoney Feature?

No. Fixed Deposit advice is not issued, in case of fixed deposits created via ActivMoney feature

Can we have both Active Money and one way sweep-in facility (Linked FD) in the same current /saving account?

No. Only one facility can be availed at a time. ActivMoney (two way sweep deposits) and Sweep -in facility on standalone Fixed deposit cannot be provided in the same Current /Savings account

Can I pre-close the Fixed Deposit created via ActivMoney feature linked to the account?

Yes. You can pre-close the auto fixed deposit (made via ActivMoney feature) linked to the account. However before closing the FDs manually, you would need to deactivate the ActivMoney feature

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