Kotak’s ActivMoney Savings Account Holders To Earn FD Wala Interest Upto 7%* P.A. With ActivMoney

Kotak Mahindra Bank Limited (“KMBL” / “Kotak”) today announced the launch of its ActivMoney feature which gives customers the benefit of FD like interest up to 7%* p.a., and the flexibility to access their funds anytime! Through ActivMoney, excess funds in the account, beyond a defined threshold, are automatically transferred into a Fixed Deposit, thereby helping customers earn a higher interest on their savings.

According to RBI data, as of March 2023**, the cumulative Savings Account deposit of all scheduled commercial banks in India is Rs 62.9 lakh crore that earns an industry average of 3.5% interest p.a., as against other instruments like Fixed Deposit, Liquid Funds etc. which gives them higher interest for a duration of six months to one year. ActivMoney spruces up interest income on the savings account with a 7%* p.a. interest rate for 180 days as well as no premature withdrawal charges which otherwise are applicable to a Fixed Deposit, thereby offering the customer the best of both worlds.

Virat Diwanji, Group President and Head, Consumer Banking, Kotak Mahindra Bank said, “Customer centric products and services is at the core of our business strategy. With ActivMoney, we aspire to change the paradigm of savings culture of Indians by offering customers FD wala interest rate on their savings account while retaining the flexibility to access funds anytime without any penalty on foreclosure.”

Rohit Bhasin, President – Retail Liabilities Product and Chief Marketing Officer, Kotak Mahindra Bank said, "Kotak’s ActivMoney fulfils the needs of young, aspirational consumers seeking higher returns on their savings whilst having the flexibility to access funds whenever needed. ActivMoney makes banking more rewarding and enables consumers to use their savings more efficiently and effectively.”

Once a customer avails the ActivMoney feature in the Savings Account, it automatically transfers the balance above the threshold (defined as per account variant) in multiples of Rs 10,000/- to an FD of 180 days currently at an interest rate of 7%* p.a. In case a customer wishes to use the funds, the entire balance in Savings and FD is instantly available. Thus, a customer earns higher interest up to 7%* p.a. for the time she keeps her savings in FD through ActivMoney and the balance in her Savings Account earns 3.5% p.a. ActivMoney is also available to 811 and Current Account holders.

Default minimum threshold over which the surplus funds earn FD wala higher interest rate is Rs 25,000 for Savings/Salary/811 accounts and Rs 50,000 for Current accounts.

New customers can avail of this facility when they open an account online via www.kotak.com or by visiting the nearest branch while existing customers can sign up through mobile banking shortly or the nearest branch.

*For deposits above 7 days.

**RBI Data: (https://dbie.rbi.org.in/BOE/OpenDocument/1608101729/OpenDocument/opendoc/openDocument.faces?logonSuccessful=true&shareId=3)

T&C Apply. For detailed terms and conditions please visit www.kotak.com

About Kotak Mahindra Bank Limited

Established in 1985, Kotak Mahindra Group is one of India's leading financial services conglomerates. In February 2003, Kotak Mahindra Finance Ltd. (KMFL), the Group's flagship company, received banking license from the Reserve Bank of India (RBI), becoming the first non-banking finance company in India to convert into a bank - Kotak Mahindra Bank Ltd (KMBL).

Kotak Mahindra Group (the Group) offers a wide range of financial services that encompass every sphere of life. From commercial banking to stock broking, mutual funds, life and general insurance and investment banking, the Group caters to the diverse financial needs of individuals and the corporate sector. The premise of Kotak Mahindra Group’s business model is concentrated India, diversified financial services. The bold vision that underscores the Group’s growth is an inclusive one, with a host of products and services designed to address the needs of the unbanked and insufficiently banked.

Kotak Mahindra Group has a global presence through its subsidiaries in UK, USA, Gulf Region, Singapore and Mauritius with offices in London, New York, Dubai, Abu Dhabi, Singapore and Mauritius respectively. As on 31st March, 2023, Kotak Mahindra Bank Ltd has a national footprint of 1,780 branches and 2,963 ATMs, and branches in GIFT City and DIFC (Dubai).

For more information, visit the company’s website at https://www.kotak.com/.