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7 Tips to Transform Your Savings into Investments with ActivMoney

11:12 PM Jun 05, 2024 IST | NE NOW NEWS
UpdateAt: 11:19 PM Jun 05, 2024 IST
7 tips to transform your savings into investments with activmoney
the ActivMoney facility offers the best of both worlds—the higher interest rates of fixed deposits and the flexibility of savings accounts.

Having a savings account is a crucial step in managing your finances. It provides a secure place to store your surplus funds while earning interest. Kotak811 enhances banking experience for its existing customers with its ActivMoney feature, which automatically transfers balances exceeding a certain threshold into fixed deposits. This allows you to earn up to 7% interest per annum, similar to a fixed deposit, while still offering 24/7 access to your funds. With ActivMoney, you get the flexibility of a savings account combined with the higher earnings potential of fixed deposits, optimising your financial growth efficiently.

All in all, the ActivMoney facility offers the best of both worlds—the higher interest rates of fixed deposits and the flexibility of savings accounts. Below are seven practical tips for transforming savings into investments with ActivMoney.

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What is the Kotak ActivMoney Feature?

Kotak ActivMoney feature allows account holders to convert their surplus savings account balance into a fixed deposit, thus earning a higher interest rate. The Kotak ActivMoney interest rate is higher than a regular savings account and has greater flexibility and liquidity. That means when an individual opts for the ActivMoney feature, they can earn a higher interest on their surplus account balance with the flexibility to withdraw funds when required.

Also known as the sweep-out facility, it allows the bank to sweep out surplus funds in a savings account and turn them into a fixed deposit. However, the sweep-out facility comes with the sweep-in facility, which gives unmatched flexibility while maximising earnings. Consequently, with ActiveMoney, a regular savings account holder can significantly expand their financial corpus.

Tips to Make Kotak ActivMoney Stand Apart

ActivMoney helps the account holders earn higher Kotak ActivMoney interest rates without compromising access to their funds at any time. Therefore, it offers a great combination of higher returns with greater flexibility, making ActivMoney stand apart from regular savings accounts. Here’s a look at the benefits of an online zero-balance accountand tips to maximiseyour savings with the ActivMoney feature:

1.      Activate the ActivMoney Feature to Gain Greater Returns

The biggest advantage of ActivMoney over a regular savings account is the higher Kotak ActivMoney interest rate. While traditional savings accounts offer a small interest amount per annum, the funds can gain a higher interest rate per annum with the ActivMoney feature. The benefit is substantial, considering the power of compounding over time. Higher interest earnings mean the savings grow faster, making financial goals easier to achieve, such as retirement, home purchase, children's wedding or education, etc.

2.      Streamline the Process with Online Access

Unlike idle funds that get stuck in fixed deposits, ActivMoney account holders can withdraw their money anytime without any penalties or charges. That is because these fixed deposits are instantly liquid, servicing the account holder's needs 24/7. Consequently, consumers don't need to worry about funds getting stuck in FDs and still earn an FD-equivalent interest rate. The facility keeps the account holder's mind at peace regarding liquidity, a key concern for people who don't want to keep their money locked in FDs.

3.      Automate the Sweep Facility

Another tip is to automate the sweep facility of surplus account balance into fixed deposits at predefined limits. That means account holders don't need to manually track their balances and create FDs every time excess money accumulates in the account. Such a level of convenience ensures no delays in the investment of idle funds, allowing account holders to start earning the higher Kotak ActivMoney interest rate right away. The facility also enforces financial discipline consistently.

4.      Leverage the Benefit of No Restrictions

With the ActivMoney feature, account holders are free to save as much corpus as they want conveniently. The bank does not impose any restrictions or limits on the account balance.

5.      Ensure Safety with the Investment

Many people with zero balance account create FDs with ActivMoney to park their excess money. This is an extremely safe option for investing their surplus money and earning interest. These investment options guarantee fixed returns and protect capital without market-linked fluctuations and risks. ActivMoney provides unmatched stability to the account balance, even during uncertain times.

6.      Use Net Banking Facility for a Seamless Operation

Account holders can manage their ActivMoney account online via the bank's net banking platform or mobile app. It has a great user-friendly interface that makes banking effortless on the move.

7.      Use the Online Platform for Easy FD Booking

Opening an FD can be a hassle for busy people. Typically, the process requires consumers to visit the local bank branch or complete forms online. The ActivMoney facility eliminates the need for any extra effort. It allows automatic FD booking as soon as the account balance reaches a predetermined threshold.

Kotak ActivMoneybrings together the benefits of high-interest FDs with the liquidity and flexibility of savings accounts. With the higher Kotak ActivMoney interest rate, account holders can earn higher returns on their savings while retaining their account’s liquidity. So, it is a win-win proposition for everyone. The facility gives multiple benefits like easy booking, high returns, and a sweep-out facility to maintain liquidity while maximising returns.