Keeping a significant amount aside from your earnings is essential to secure your future financially. It improves your financial stability and immunises you against unexpected emergencies. To start with, a savings account can be a good option. It allows you to keep your money safe and earn interest on it.
What if you could earn up to 7% interest on your savings? Yes, you heard it right! Kotak Mahindra Bank has introduced ActivMoney, a revolutionary feature that enables depositors to earn FD-like interest on their savings accounts.
This blog will help you familiarise yourself with what Kotak ActivMoney Savings Account is, who is eligible for this facility, the benefits it offers, and more. So, let’s begin!
Banking Redefined with Kotak Savings Accounts
Kotak Savings Accounts have been carefully crafted to cater to modern consumers’ needs. They offer convenience and financial flexibility without the hassles of traditional banking norms.
- Paperless Account Opening
With Kotak Mahindra Bank, you can bid farewell to tedious paperwork and time-consuming branch visits. Open your high interest Savings Account digitally, using your PAN and Aadhaar from the comfort of your home, eliminating the need for physical ID proofs.
- Effortless Account Creation
The process of opening an account is convenient and user-friendly. In just a few minutes via the Kotak website, you can have your account ready, complete with an instant account number.
- Virtual Debit Card
As a Kotak Savings Account holder, you receive a free virtual debit card upon account creation. This card is ready for all your digital transactions, and you’re also eligible for a credit card, ensuring rewarding experiences for all. Once your KYC is completed, you get physical debit card too.
ActivMoney: Earning Up to 7% Interest By Making Your Idle Money Work
ActivMoney is an innovative feature offered by Kotak Mahindra Bank, designed to help your idle funds work harder for you. It essentially functions as a Flexi Fixed Deposit, allowing you to earn higher interest rates on surplus money in your Kotak Savings Account.
Who is Eligible for ActivMoney Facility?
ActivMoney is available to a wide range of Kotak account holders, including:
- Resident savings and current account holders.
- Non-resident customers (existing account holders with Kotak Mahindra Bank)
Benefits of Availing ActivMoney Facility
- Higher Earnings: By opting for ActivMoney, you can earn interest rates up to 7% per annum, a significant boost compared to a regular savings account. This higher interest rate can help you grow your savings faster.
- No Lock-In Period: Unlike traditional Fixed Deposits, ActivMoney offers complete flexibility. There is no lock-in period, so you can access your funds whenever you need them without any restrictions.
- Flexible Access: You can seamlessly access your funds when required without incurring any penalties. This feature ensures that your money remains liquid and available for your financial needs.
How ActivMoney Works?
ActivMoney operates based on a simple yet effective mechanism:
- You set a sweep-out limit, which typically starts at Rs 25,000. This means that if your Savings Account balance exceeds this threshold, the surplus amount, in multiples of Rs 5,000, is automatically transferred into a Fixed Deposit.
- When your Savings Account balance falls below the set threshold, ActivMoney comes into play. It compensates for the shortfall by utilising your Fixed Deposit. This ensures you pay zero penalties for premature withdrawals.
- The Fixed Deposit created through ActivMoney typically has a tenure of 180 days and earns interest, which is credited directly to your Savings Account every 180 days.
How to Avail ActivMoney?
Availing the ActivMoney facility is a straightforward process for Kotak Savings Account holders. Just follow the steps mentioned below:
- Check Eligibility
Ensure you meet the eligibility criteria for Kotak ActivMoney Savings Account. As mentioned earlier, it is available for resident and non-resident account holders (for existing account holders).
- Contact Kotak Mahindra Bank
Reach out to Kotak Mahindra Bank through their customer support or visit your nearest branch. Being an existing account holder with Kotak Mahindra Bank, you can also activate ActivMoney by raising a service request in Mobile Banking App or even via WhatsApp banking.
- Request Activation
Request the activation of the ActivMoney facility for your Savings Account. The bank staff will guide you through the process, including setting the sweep-out limit based on your preferences.
- Enjoy the Benefits
Once ActivMoney is activated, any surplus amount in your Savings Account above the set threshold will automatically earn higher interest in the Fixed Deposit.
Kotak Mahindra Bank’s Savings Accounts, combined with the power of ActivMoney, offer you a comprehensive banking solution that not only provides convenience but also presents the opportunity to earn up to 7% interest on your surplus funds. With these competitive interest rates and the flexibility of ActivMoney, Kotak Savings Accounts become a powerful tool to maximise your financial growth. So why settle for a standard savings account when you can harness higher returns with Kotak ActivMoney Savings Account right away?