Earn up to 7%* Interest with Kotak ActivMoney Savings Account (2024)

Features

• ActivMoney is an exciting combination that gives you the benefit of high FD-wala interest up to 7%* 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. 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:

*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:
  • 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

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