FD vs. Savings Account: Where to Get the Highest Interest Rate?

Published on Sep 26, 2023 06:31 PM IST

The ActivMoney feature in Kotak811 Savings Accounts is the perfect blend, ensuring that customers get the best of both worlds

What truly sets ActivMoney apart is the unmatched combination of high liquidity and attractive returns.
What truly sets ActivMoney apart is the unmatched combination of high liquidity and attractive returns.
ByHT Brand Studio

In the world of banking and finance, Fixed Deposits (FDs) have always been seen as a surefire way to earn steady income. They come with a fixed interest rate over a specific tenure with assured returns. The only drawback of this much preferred investment? The lack of flexibility. Once you've put your money into an FD, accessing it before maturity can mean losing out on the interest earned or incurring penalties.

On the flip side, savings accounts provide free access to funds but often disappoint when it comes to interest rates. While they are a necessity of sorts, they aren’t too lucrative.

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But what if you were to get the best of both FDs and Savings Accounts?

Highest interest rate savings accounts from certain banking products are shaking things up, for the better. With a Savings Accounts from Kotak811: you don’t need to compromise on returns for the sake of flexibility, nor flexibility for the sake of high returns.

The revolutionary ActivMoney feature in Kotak811 Savings Accounts is the perfect blend, ensuring that customers get the best of both worlds. This is available with the Kotak811 Zero Balance Savings Account as well.

Why Choose Kotak811 ActivMoney?

1. Terrific Interest Rates: With ActivMoney*, you can earn up to a whopping 7%* interest p.a. on your savings, among some of the highest interest rates on savings accounts available today. This is a game-changer, especially when you consider the nominal interest rates provided by conventional savings accounts.

2. FDs Reimagined: The brilliance of ActivMoney lies in the fact that FDs get auto booked and function just like a bank account. This means you can enjoy 24x7 access to your money without any hassles. No more waiting for any maturity period to access your funds!

3. Fluid Fund Management: Shift funds in and out effortlessly as and when required. There’s no need to worry about maintaining high balances in your savings account just for the sake of earning interest.

4. No More Penalty Charges: One of the biggest gripes people have with FDs is the penalty on premature withdrawal. With ActivMoney, those charges are a thing of the past. What's more, your balance continues to earn interest till maturity.

How Does ActivMoney Work?

If you're wondering about the nitty-gritty of this innovative feature, here's a breakdown:

• For balances over 25,000 in your savings account, ActivMoney is automatically booked in multiples of 5,000.

• Suppose you maintain a balance of 45,000 in your savings account. An ActivMoney of 20,000 will be booked, ensuring that a minimum balance of 25,000 remains in your savings account.

• In scenarios where someone issues a cheque of 30,000 against your account, 5,000 from your latest ActivMoney will be seamlessly "swept in" to clear the cheque without any hitches.

• The interest earned on your ActivMoney is credited every 180 days in your ActivMoney account, ensuring your money is always working for you.

The Ultimate Benefits of ActivMoney

What truly sets ActivMoney apart is the unmatched combination of high liquidity and attractive returns. Any amount from your savings account turned into ActivMoney earns an FD-like interest rate of up to 7% per annum. Because these deposits are flexible, funds can be easily shifted back into your savings account without any charges. This not only offers peace of mind but also ensures that your money is never idle.

For those using Kotak811 savings accounts, the default sweep-in limit stands at 20,000, the sweep-out limit is set at 25,000, and ActivMoney is booked in convenient multiples of 5,000.

With Kotak811's ActivMoney, the age-old debate between FDs and savings accounts is rendered moot. This feature makes this account undoubtedly one of the highest interest rate savings accounts to enter the market. You’ll never have to compromise between flexibility and returns. So, why settle for less when you can have the best of both worlds with Kotak811?

*ActivMoney (Auto Sweep) is a facility of automatically sweeping out funds above a pre-specified threshold from your Current/Savings Account to a Term Deposit (TD) Account for 180 days. In case of insufficient balance in Current/Savings Account, the TD will be broken prematurely and the required amount will be transferred to Current/Savings Account.

Default Sweep Out and Sweep In for limit for an account variant are the minimum thresholds and one will not be able to opt for limits lower than these. Auto-Sweep out of funds above a pre- specified threshold from Savings to Fixed Deposit will be for 180 days and in multiples of Rs. 5,000. The nomination registered for Saving Account / Current Account will apply for FDs created through ActivMoney. If customer opts for ActivMoney in an account, standalone Fixed Deposits cannot be linked to that account. Terms and Conditions guiding the fixed deposit will be applicable to fixed deposits booked under ActivMoney.

Bank may at its absolute discretion discontinue / suspend any of the services completely or partially with or without any notice to me.

© Copyright Kotak Mahindra Bank Ltd

Disclaimer: This article is a paid publication and does not have journalistic/editorial involvement of Hindustan Times. Hindustan Times does not endorse/subscribe to the content(s) of the article/advertisement and/or view(s) expressed herein. Hindustan Times shall not in any manner, be responsible and/or liable in any manner whatsoever for all that is stated in the article and/or also with regard to the view(s), opinion(s), announcement(s), declaration(s), affirmation(s) etc., stated/featured in the same. This information does not constitute a financial advice.

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