![]() ![]() For instance, Kotak’s ActivMoney is a facility of automatically sweeping out funds above a threshold from your savings account to a FD account for 180 days. The tenure of FDs and interest rates vary with the banks. For instance, at Axis Bank and Kotak Mahindra Bank, the required threshold amount in the savings account is Rs 25,000, at ICICI Bank its Rs 15,000, and at IndusInd Bank its Rs 20,000 (see graphic). The threshold limit for sweep-out varies. Similarly, when the savings account balance falls below a pre-determined limit, the linked FD(s) are automatically closed and the proceeds credited to the savings account to make up the deficit (also called sweep-in). Some banks like Jana Small Finance Bank and Kotak Mahindra Bank extend this facility to their current account holders.Īs and when the balance in the savings or current account crosses a preset threshold, the excess amount is automatically used to open FDs for a pre-determined tenure (also called sweep-out). This allows a savings account holder to earn higher interest as offered in FDs while retaining the liquidity offered by a saving account. This is an auto sweep feature that is offered by several other banks, including Axis Bank, HDFC Bank, ICICI Bank and IndusInd Bank. On June 15, Kotak Mahindra Bank launched its ActivMoney feature, which gives customers the benefit of fixed deposit (FD)-like interest up to 7 percent per annum, and the flexibility to access their funds at any time from the linked savings account. ![]()
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