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What are the Benefits of ActivMoney Savings Account
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Disclaimer: 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. The 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 empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the 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. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.
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Savings accounts are an integral part of one's financial journey. However, traditional savings accounts offer low interest rates on your money while fixed deposits lock up your funds. Kotak ActivMoney brings together the best of both worlds - higher returns of fixed deposits along with liquidity of savings accounts.
What makes Kotak ActivMoney stand apart?
Kotak ActivMoney is a premium savings account that automatically transfers surplus funds from your account into high-interest fixed deposits in a completely seamless manner. This helps you earn significantly higher interest of up to 7% p.a. without compromising on access to your money at any time.
This unique combination of great returns coupled with flexibility makes ActivMoney a cut above traditional savings accounts in every respect. Let's look at some of the unbeatable benefits of this savings account.
Higher returns
The biggest advantage ActivMoney has over regular savings accounts is the higher interest earnings on your money. While traditional accounts give you around 3 to 4% interest p.a., your funds can gain up to 7% interest p.a. returns through ActivMoney facility
For instance, if you maintaine an average monthly balance of ₹1 lakh in your ActivMoney account versus a regular savings account, you can earn ₹7000 more in FD interest every year! This shows the power of compounding over a long term.
Higher interest income means your savings grow faster. So you are able to achieve crucial financial goals like retirement, children's education, house purchase, etc. quicker than otherwise possible.
Easy access
Despite idle funds getting locked in FDs, you can withdraw any amount from your ActivMoney account anytime with no charges or penalties. This is because linked FDs get instant liquidation to service your withdrawal needs 24x7.
So you never have to worry about funds getting stuck while earning higher returns. This gives complete peace of mind regarding liquidity - a key concern that prevents people from keeping money in FDs.
Automation
Another standout feature is the automatic sweep of surplus money into FDs at predefined thresholds. You don't have to manually track balances and create FDs yourself every time excess funds build up.
This convenience ensures no delays in investing idle money, allowing you to start earning higher returns right away. Automatic sweeps also enforce savings discipline consistently.
No limits
With Kotak ActivMoney, you have the freedom to save as much money as you want, conveniently. There are no limits or restrictions on your account balance.
Safe investment
The fixed deposits created to park your excess money are an extremely safe investment option. They guarantee you fixed returns and capital protection without market risks and fluctuations. This provides stability to your savings in uncertain times.
Seamless
You can manage your ActivMoney account digitally via Kotak’s excellent net banking platform and mobile app. Great interface and user experience for effortless banking on the move.
Conclusion
Kotak ActivMoney brings the high interest of fixed deposits together with the flexibility and liquidity of savings accounts – giving you the best of both. By earning higher returns in a safe way while retaining access to your savings, ActivMoney delivers a win-win proposition.
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