Maximize Your Savings with Kotak ActivMoney Account

About    How it works   Features   

What is ActivMoney?

Kotak ActivMoney is an auto sweep facility that lets your money work for you by earning FD-wala interest on your idle funds. It gives you the flexibility to access your funds anytime without any penalty.

With this facility, the excess amount in your savings/current bank account, above a predetermined threshold, is automatically transferred into a Fixed Deposit so you can earn higher interest.

Features

• ActivMoney is an exciting combination that gives you the benefit of high FD-wala interest in your Savings Account & 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 in case of Savings Account (91 days for Current Account). 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 Everyday Savings Account and you opt for ActivMoney facility. The default ActivMoney Sweep out threshold for Everyday Savings Account variant (Non Privy) is ₹50,000/- and the Sweep in threshold is Rs.25,000/-.

When the savings account balance exceeds ₹50,000, the balance amount above the threshold value will automatically sweep out (be transferred) to a 180-day Fixed Deposit, in multiples of ₹5,000*.

When your savings account balance goes below the defined sweep-in threshold, which is ₹25,000 for Everyday Savings Account variant (Non Privy), funds will automatically be transferred back in multiples of ₹5,000 (sweep in) from your ActivMoney Fixed Deposit to your savings account, ensuring your account maintains the minimum required balance. This process is seamless and there will be no penalty, even if the Fixed Deposit is broken prematurely.

Please note that premature withdrawal of the Fixed Deposit in less than 45 days may result in interest earnings of ActivMoney Fixed Deposit being lower than the savings bank account interest.

Here’s an example:

Note: *The ₹40,000 gets transferred from Savings Account and ₹10,000 becomes the new balance. To maintain the account balance equivalent to sweep in threshold of 25,000/-, the Deposit-2 is broken partially and ₹15,000 gets transferred from ActivMoney Fixed Deposit to the account (Fixed Deposit is broken in multiples of ₹5,000). Making ₹25,000 as the new balance in Savings Account.

Fixed Deposits 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, Fixed Deposits will continue to be created in multiples of ₹10,000 but will be broken in multiples of ₹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:
  • Self-operated minor accounts
  • 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
• Sweep in facility is activated on FDs booked through activmoney feature and hence these FDs cannot be used as collateral to avail Overdraft against FD facility.
• 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
• A new Form 15G/15H must be submitted for all existing FD (including FDs created through ActivMoney)/RD at the beginning of the financial year, upon the renewal of FD (Including FDs created through ActivMoney)/RD, and whenever a new FD (Including FDs created through ActivMoney)/RD is booked.

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