Generally , a savings interest rate of 3 to 4 percent is provided on the savings balance of account holder by banks like SBI , ICICI Bank, HDFC Bank and also these banks provide an auto sweep facility for their customers to help them earn a higher rate of interest on their savings account .
The ActivMoney facility is provided to existing account holder of Kotak bank where the amount is automatically deducted from the account of customer and placed into a fixed deposit.
Once , you open an ActivMoney savings bank account with Kotak Bank , you are provided a default option of transferring your unutilised balance more than Rs25000 to a fixed deposit of 180 days automatically created by the bank .
If you apply for the ActivMoney facility in your bank account , your amount above the set threshold will be automatically debited . This option can activated from the Kotak bank by selecting the ActivMoney Existing Customer option .
To start their is a requirement for the applicant to be a account holder of the Kotak mahindra bank or to open a current account or a savings account with the Kotak Mahindra banking facility online or through netbanking or mobile banking facility .
Is there auto sweep facility in Kotak Mahindra Bank?
Now , with the ActivMoney facility higher rate of interest shall be provided to the customer on their auto sweep by the Kotak bank and also the amount will be auto debited from the account with creation of a 180 days fixed deposit which will be instantly withdrawn if the customer is required to meet some of his cheques or needs.
How much time it takes to activate beneficiary in Kotak?
Their is no lock in and no premature withdrawal charges associated with the Kotak ActivMoney savings account where the customer fixed deposit created with ActivMoney will automatically be broken on making payment . The auto sweep facility will take the remaining or unutilised balance above the threshold set for auto sweep automatically after the day end .
It will take around 15 to 20 minutes at the day end for the banking servers to create a fixed deposit . It might also be created at the time of ending of the normal banking hours of Kotak mahindra bank where the customer can use the funds or it will be automatically transferred to the fixed deposit .
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The auto sweep facility of Kotak Bank with ActivMoney can be considered as one of the most yeilding investment option on the fixed deposit , where other banks are offering such rate of 7% on a fixed deposit which are placed for a year.
The bank interest credit option can be quarterly or can be received even on month to month basis on direct bank account of the customer . Generally , savings interest is provided to the Kotak bank customer at every quarter end .
For ActivMoney , the feature can be enabled and disabled at any time while for a fixed deposit with the bank application of fixed deposit through the bank branch or through the mobile application is to be done manually which takes time and complications .
No premature withdrawl charges will be take in Autosweep at any time where if you create a fixed deposit with Kotak bank or any other bank you have to pay premature withdrawal charges.
ActivMoney autosweep balance is like savings bank balance only , it is liquid and will be provided by the bank instantly to the customer whenever their is a need to meet some payment or some cheques .
The bank will automatically closes the fixed deposit created and make payment of the cheque amount if the balance becomes lower then the set threshold.
As a Kotak bank saving or current account customer you can start the ActivMoney facility by manually making an application with the bank .
The interest rate provided for Kotak 811 Autosweep FD is around 6 to 7% depending on the amount kept and the number of days or months for which the amount is kept with the bank .
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ActivMoney Kotak Bank Application Video Help
Kotak Bank Saving account ActivMoney is a useful facility for those who want to earn a higher rate of interest on their saving balance . It provides a rate of 7% on their savings even if their amount is liquid to them to make any kind of payment as they like to do .