VISHAL RAJ #kotakactivmoney ?
Kotak ActivMoney is an innovative feature offered by Kotak Mahindra Bank that allows your money to work smarter for you. Let me break it down for you
How Does ActivMoney works, Blog👇🏻
Earnings, boosted
Earn up to 7% interest p.a. on an amount over Rs.25,000 in your savings account. ActivMoney is automatically booked in multiples of Rs.5,000. Interest gets credited after a maturity period of 180 days.
Investing, reimagined
Invest with zero commitment of a lock-in period. Your deposits will be “swept in” automatically to make up for any shortfall of funds in your savings account.
Charges, eliminated
Pay absolutely zero charges on premature withdrawal of your ActivMoney. Continue to earn interest on your ActivMoney balance.
What is ActivMoney?
- Kotak ActivMoney is an auto sweep facility integrated into your savings account.
- It’s like having a financial assistant that automatically manages your idle funds.
- Here’s how it works:
- If your savings account balance exceeds a predetermined threshold (for example, ₹25,000), the excess amount is automatically transferred into a Fixed Deposit (FD).
- This FD earns higher interest, similar to what you’d get from a regular FD.
- The best part? You can still access your funds anytime without any penalty.
- When your savings account balance falls below the threshold, the shortfall is compensated from your FD.
- So, you pay zero penalty on premature withdrawal.
- By default, the FD is created for a tenure of 180 days.
- No worries about locking in your money—it’s flexible and accessible.
- The interest on the FD is paid as simple interest.
- FDs are created and broken in multiples of ₹5,000 for new ActivMoney registrations (effective from 5th July 2023).
How Does ActivMoney works video👇🏻
- Example Scenario:
- Let’s say you have a Kotak Edge Savings Account and opt for ActivMoney.
- The default threshold for Edge Savings Account (Non Privy/Private Banking) is ₹25,000.
- Here’s how it plays out:
- Day 1:
- You have ₹1 lakh in your account, with the threshold set at ₹25,000.
- At the end of the day, ₹75,000 is moved to an auto-created FD of 180 days at a prevailing rate of 7%.
- Day 2:
- You credit another ₹25,000 to your account.
- The balance now stands at ₹1,25,000.
- Day 17:
- A cheque for ₹40,000 is presented for clearing.
- Your balance remains flexible, with the FD acting as a buffer.
- Day 1:
- Zioome tips & Trick Example Scenario :
- Fd ₹25,000 in #kotakactivmoney
- 7% off p.a. (par/month Profit ₹75)
- Example after 6 month credit ₹450 in your a/c.
- it’s mean (450/6= ₹75 per/month Profit)
- 1st month Profit ₹75 of Your investment on #kotakactivmoney (₹25,000)
- Earn ₹150 per/month online trick
- 2 time ₹25,000 FD in #kotakactivmoney (investment ₹50,000)
- Than Earn ( 75×2=₹150 per/month Profit)
So, with Kotak ActivMoney, your money doesn’t just sit idle—it grows while remaining accessible. 🌟
