In today’s fast-paced financial landscape, individuals are constantly seeking ways to maximize the returns on their savings while maintaining liquidity and flexibility. ActivMoney, an innovative feature offered by Kotak 811, addresses this challenge by seamlessly integrating Fixed Deposits (FDs) with savings accounts. In this detailed article, we’ll explore what ActivMoney is, how it works, and the benefits it offers to savers.  

What is ActivMoney? 

ActivMoney is a feature introduced by Kotak 811 to help customers make the most of their idle funds. It automatically transfers excess funds from a customer’s savings account into a linked Fixed Deposit (FD), enabling individuals to earn higher interest rates on their savings while retaining instant access to their funds. 

How Does ActivMoney Work? 

1. Threshold Setting: The first step in utilizing ActivMoney is setting a threshold balance within your savings account. This threshold represents the minimum amount of funds you wish to maintain in your account for day-to-day expenses and liquidity purposes. 

1. Automated Sweeping: Once the balance in your savings account exceeds the predefined threshold, ActivMoney automatically initiates a sweep of the surplus funds into a linked saFixed Deposit (FD). These funds are seamlessly transferred from your savings account to the FD, where they start accruing higher interest rates offered by FDs. 

1. Instant Access: Despite being invested in an FD, the funds remain easily accessible whenever needed. If a withdrawal or transaction reduces the balance below the threshold, ActivMoney promptly breaks the FD and transfers the required amount back into your savings account. This ensures that you have uninterrupted access to your funds whenever necessary. 

To know more about ActivMoney and how it works, watch this informative video by Kotak 811: 

https://youtu.be/4JhBiAQByo8?si=U-KEtKlDJIz9nNv1 

Benefits of ActivMoney 

1. Maximized Returns: 

With ActivMoney, individuals can capitalize on the higher interest rates offered by Fixed Deposits (FDs), thereby maximizing the returns on their idle savings. By automatically transferring excess funds from a savings account into a linked FD, ActivMoney ensures that these funds start accruing interest at the prevailing FD rates, typically higher than traditional savings accounts. This allows individuals to earn more interest on their savings without actively managing their investments. 

1. Automatic Operation: 

One of ActivMoney’s key advantages is its seamless and automated operation. Once individuals set a predefined threshold balance within their savings account, ActivMoney takes care of the rest. It operates in the background, with automated sweeps and transfers based on predefined thresholds. This eliminates the need for manual intervention, saving time and effort while ensuring convenience and efficiency in managing savings. 

1. Enhanced Liquidity: 

Despite the funds being invested in FDs, ActivMoney ensures that individuals retain instant access to their funds whenever required. If a withdrawal or transaction reduces the balance below the predefined threshold, ActivMoney promptly breaks the FD and transfers the required amount back into the savings account. This preserves liquidity and flexibility, allowing individuals to address unforeseen expenses or financial emergencies without restrictions or delays. 

1. Capital Preservation: 

Fixed Deposits (FDs) are a secure investment avenue that offers capital protection and stable returns. With ActivMoney, individuals can enjoy the security of FDs while retaining accessibility to their funds. This ensures that their savings are protected against market fluctuations and other risks, providing peace of mind and financial stability. 

1. Optimized Savings Strategy: 

ActivMoney allows individuals to balance earning higher interest rates and maintaining liquidity. By automatically transferring excess funds into FDs, ActivMoney streamlines the utilization of funds, ensuring that idle savings are leveraged effectively. This optimized savings strategy enables individuals to make the most of their financial resources, achieving their savings goals more efficiently while maintaining flexibility and accessibility to their funds. 

Conclusion: 

ActivMoney represents a powerful tool for individuals looking to optimize their savings strategy. Seamlessly integrating Fixed deposit with savings accounts empowers individuals to achieve the dual objectives of maximizing returns and maintaining liquidity. With its automated operation, enhanced flexibility, and emphasis on capital preservation, ActivMoney emerges as an asset for individuals seeking to improve their financial well-being and achieve their long-term goals.