Kotak Mahindra Bank (KMB) has launched “ActivMoney”, whereby customers will get Fixed Deposit (FD) like interest up to 7 per cent on their savings account and the flexibility to access their funds anytime without any penalty on foreclosure.
Through ActivMoney, excess funds in the account, beyond a defined threshold, are automatically transferred into an FD so that customers earn a higher interest on their savings.
“Default minimum threshold over which the surplus funds earn FD like higher interest rate is ₹25,000 for Savings/Salary/811 accounts and ₹50,000 for current accounts.
“ActivMoney spruces up interest income on the savings account with a 7 per cent per annum interest rate (for deposits above 7 days) for 180 days as well as no premature withdrawal charges which otherwise are applicable to a Fixed Deposit,” per the private sector bank’s statement.