Kotak ActivMoney: The Future of Saving Accounts

Kotak ActivMoney is a brilliant new savvy feature that will help you make more with your savings account. The feature helps you transform the way your money is earned. It’s like having a diligent worker in your bank account, tirelessly turning your idle funds into more earnings. Read on to get a closer look at the feature before you get left behind by this game-changing ace!

What is Kotak ActivMoney?

An ActivMoney savings bank account is a unique offering that seamlessly clubs the advantages of a standard savings account with the benefits of an FD (fixed deposit). This revolutionary account permits you to earn a higher interest rate on your idle money while keeping the liquidity features of a savings bank account intact. The additional funds over a predefined limit in the ActivMoney account are transferred automatically to an FD, endowing you the opportunity to enhance your savings effortlessly.

Here’s how it works: ActivMoney automatically takes any extra cash in your savings or current account over a certain amount, and puts it into a FD. This isn’t just any FD; it’s a special one where your money earns higher interest, similar to what you’d get from a regular FD. The magic number here is Rs. 25,000. If you have more than this in your Kotak811 Savings Account, ActivMoney kicks in and starts shifting funds in multiples of Rs. 5,000 into an FD, where your money grows faster at up to 7% interest per annum.

“Say, you have Rs. 30,000 in your account. ActivMoney will automatically move Rs. 5,000 into an FD, earning a juicy interest rate for 180 days“. And as you keep adding money to your account, it keeps working on the excess, always ensuring your savings are earning as much as they can. But here’s the best part – your money is never out of reach. Need to make a big purchase or handle an unexpected expense? You can access your funds anytime without any penalties. It’s like having the best of both worlds: your money grows like it’s in an FD, but it’s available like it’s in a savings account. Amazing, innit?

To put it in the most layman’s terms, Kotak keeps an eye on your savings and not in a sus-bad way, but with a very insightful end goal. So when the account manages to have more money than the limit that you set, it takes the extra money and shifts it to a special separate account. This is where your money also grows with a certain interest rate, and your money earns interest at the rate of a Fixed Deposit, which is higher than a regular savings account.

How Does ActivMoney Work?

Understanding how a Kotak ActivMoney account works is quite straightforward. Let’s break it down into simple steps. ActivMoney operates on a simple yet effective principle. It automatically moves the excess amount in your savings account, above a specified limit (Rs. 25,000), into a Fixed Deposit (FD). This movement happens in multiples of Rs.5,000. For instance, if your account has Rs. 30,000, Rs. 5,000 of this will be transferred automatically into an FD, where it starts earning a higher interest rate, up to 7% per annum, for a period like 180 days. This process continues automatically as your account balance grows.

The unique aspect of ActivMoney is that it effortlessly combines the features of a savings account with the high-interest benefits of a Fixed Deposit. Your savings account balance includes both the money in the account and the money that has been moved to FDs, along with the interest you’ve earned from these FDs.

Kotak ActivMoney Savings Account Interest Rate

The Kotak ActivMoney Account offers an interest rate of 7% per annum, similar to a Fixed Deposit (FD). The scheme applies to your savings account with a surplus balance exceeding Rs. 25,000 and also to My Family Savings Accounts. 

The ActivMoney facility automatically transfers any amount above a set threshold in your savings account into a Fixed Deposit, allowing you to earn higher interest rates. The Fixed Deposit is created in multiples of Rs. 10,000 with a tenure of 180 days. Notably, there is no penalty for premature withdrawal of these FDs. The interest on savings accounts is calculated on a daily balance basis but is credited quarterly. This means that the interest accumulates daily based on your account’s end-of-day balance but is only added to your account every three months. 

Features and Benefits of ActivMoney Savings Account

There are multiple benefits of the scheme. Some of the most amazing perks are:-

• Enhanced Interest Earnings: A Kotak ActivMoney account offers higher interest rates compared to a regular savings account, leading to more substantial growth of your savings over time.
• Automated Convenience: The ActivMoney account automates fund transfers between your savings and FD, simplifying account management.
• Assured Security: Funds in ActivMoney accounts are insured up to Rs 5 lakh by DICGC, ensuring security for your deposits.
• Persisting Liquidity: ActivMoney keeps your funds accessible, allowing you to withdraw from your FD without penalties, maintaining the liquidity of your savings.
• Flexibility: ActivMoney offers easy access to your funds, unlike traditional FDs. It automatically transfers funds from your FD to your savings account for any transaction, ensuring flexibility and reliability.
• Profit: With ActivMoney, your surplus savings earn higher interest rates, ensuring your money isn’t idle and grows efficiently while remaining accessible.

How to Apply for ActivMoney Account?

Opening a Kotak ActivMoney savings account is straightforward and can be done either online or at a branch. 

Offline Procedure

For a physical offline procedure, you can simply access the closest branch with all your required documents and the feature is added after document authentication. 

Online Procedure

To open a Kotak ActivMoney savings account online, visit Kotak’s website, navigate to the ActivMoney page, and click “Apply Now.” You’ll be directed to the account opening page, where you need to enter your name, mobile number, email ID, PIN code and your Aadhaar and PAN details, including an image of your PAN card. These documents are essential for regulatory compliance. Finally, complete a video KYC process for identity and address verification. Once done, your account will be set up.

Step-by-Step Guide

Here’s a condensed guide:-

1. Collect Required Documents:

• For a branch visit, bring identity and address proofs like PAN, Aadhaar, voter ID, and a recent passport-sized photo.
• For online opening, you’ll need Aadhaar and PAN card details.

2. Apply Online:

• Visit Kotak’s website, navigate to the ActivMoney savings account section, and click “Apply Now.”
• Provide your details, Aadhaar, and PAN information, and upload a PAN card image.

3. Complete Video KYC:

• This step is crucial for online account opening and involves verifying your identity and address.

4. Document Authentication:

• Kotak will verify your documents. Once approved, you’ll receive your account details via email.

5. Access Mobile Banking:

• Use Kotak’s mobile app for convenient account management.

6. Activate ActivMoney Feature:

• This can be done during online account opening with Kotak811, through mobile banking, or by calling customer service.
• The default FD tenure is 180 days, with no penalties for early withdrawal.

Kotak ActivMoney Savings Account Minimum Balance Requirements

The Kotak ActivMoney Savings Account does not require a minimum balance commitment, which means there are no charges for maintaining a low balance in the account. However, the ActivMoney feature comes into play only when the balance in your savings account exceeds a certain threshold. This threshold is set at Rs. 25,000 for most savings account variants like the Kotak Edge Savings Account. If your account balance goes above this threshold, the excess amount is automatically transferred into a Fixed Deposit in multiples of Rs. 5,000 to earn higher interest.

Kotak ActivMoney Savings Account Charges and Fees

There are no charges or fees associated with the Kotak ActivMoney Savings Account. You can simply subscribe to the feature while opening a new Kotak811 zero balance account online or you can activate it via Kotak Mahindra Mobile Banking. In the mobile banking app, navigate to the ‘811 section’ and select ‘Setup ActivMoney’ to get started.

Documents Required for Kotak ActivMoney Savings Account

To open a Kotak ActivMoney Savings Account, you’ll need specific documents for either physical or digital account opening. In a branch (physical mode), bring identity proofs like a PAN card, Aadhaar card, voter ID, or passport, and address proofs such as utility bills, Aadhaar card, or rent agreement. Also, carry recent passport-sized photos. For online account opening, just your Aadhaar and PAN card are needed. You can submit these documents via the bank’s website or mobile app. This documentation process is essential for complying with regulatory requirements and ensuring a smooth account opening.

Kotak ActivMoney Customer Care Number

Kotak ActivMoney effectively boosts your savings by automatically converting excess funds in your savings account into high-interest fixed deposits (FDs). Its most striking feature is it ensures easy access like a regular savings account. This seamless approach provides a hassle-free solution for maximising savings. 

Kotak’s customer experience centre can be easily accessed at 1860-266-0811. You can request to enable the ActivMoney feature on your account through the number.

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