Kotak Mahindra Bank launches “ActivMoney” feature for savings account holders

Kotak Mahindra Bank (KMB) has launched “ActivMoney”, where customers will get Fixed deposits (FD) like up to 7 percent interest on their savings account and the flexibility to access their money at any time without any foreclosure penalty.

Through ActivMoney, excess funds in the account, which exceed a specified limit, are automatically transferred to FD so that customers earn higher interest on their savings.

The default minimum that surplus funds on an FD account receive as the higher interest rate is €25,000 for savings/payroll/811 accounts and $50,000 for checking accounts.

“ActivMoney maximizes interest income on a savings account at an interest rate of 7 percent per annum (for deposits of more than 7 days) for a period of 180 days plus no early withdrawal fees that would otherwise be applied to a fixed deposit,” according to the private bank statement.