The Kotak Mahindra Bank introduced ActivMoney, which offers consumers FD-like interest up to 7%* p.a. and the ability to access their accounts whenever they choose. Customers are given the opportunity to earn more income on their savings since any unused money in the account is immediately converted into a fixed deposit.
ActivMoney is a feature in the Savings Account that transfers the balance above the threshold in multiples of Rs 10,000/- to an FD of 180 days at an interest rate of 7%* p.a. If the customer wishes to use the funds, the entire balance in Savings and FD is instantly available. This allows the customer to earn higher interest up to 7%* p.a. for the time they keep their savings in FD through ActivMoney and the balance in their Savings Account earns 3.5% p.a. ActivMoney is also available to 811 and Current Account holders. The default minimum threshold for a higher interest rate is Rs 25,000 for Savings/Salary/811 accounts and Rs 50,000 for Current accounts.
Rohit Bhasin, President – Retail Liabilities Product and Chief Marketing Officer, Kotak Mahindra Bank said, “Kotak’s ActivMoney fulfils the needs of young, aspirational consumers seeking higher returns on their savings whilst having the flexibility to access funds whenever needed. ”
