Current Accounts are essential for businesses and enterprises to make large and frequent transactions. While they offer great flexibility, they do not earn any interest as they are heavily operated accounts that require costly maintenance from banks. This is a drawback for those who keep substantial balance in their Current Accounts since the funds always remain idle and even lose value due to inflation. This is where the auto sweep facility in Current Accounts plays an important role.
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Understanding the ActivMoney facility
Offered by various ActivMoney Current Accounts, the auto sweep facility helps you earn interest on idle funds. This is particularly useful for individuals with a significant excess balance in their accounts. The process begins when the Current Account balance exceeds a set amount, automatically transferring the surplus funds into a Fixed Deposit (FD) and earning FD-like interests. The available balance for transactions comprises both your Current Account balance and the funds in the FD.
Despite the 180-day tenure, you can access this amount anytime without facing penalties for early FD withdrawal. Thus, ActivMoney ensures that your funds are dynamically utilised to your advantage while maintaining full liquidity.
The process to set up ActivMoney for your Current Account
Contact your bank
You can choose your preferred communication mode, whether that’s a phone call, an email, or a visit to your nearest branch.
Just fill out the form with your personal details, after which a bank representative will contact you. They will review your existing Current Account details and give you clear insights into whether you can activate ActivMoney on your existing account or if you should open a Current Account online separately to access this feature.
Provide necessary information
Depending on your bank, you might need to provide certain Current Account opening documents or other information. The bank usually outlines all the prerequisites clearly on its website. So make sure to check the requirements beforehand to avoid any delay and speed up the process.
Confirmation and activation
The bank will process your request once you have provided the required information. Once the ActivMoney feature is enabled, you will receive confirmation, along with details regarding the threshold balance, interest rates, and other relevant terms. Now, maximise your Current Account value with the auto sweep facility and grow your savings.
Regularly monitor your balance, transactions, and the interest earned through ActivMoney. This will give you a clear picture of how your finances are growing.
Benefits of the ActivMoney facility in Current Accounts
- Higher interest earnings– The primary benefit of ActivMoney Current Accounts is the opportunity to earn higher interest rates on your surplus funds unlike regular Current Accounts that pay no interest.
- Easy access– Despite being a type of investment, ActivMoney maintains the liquidity of your funds. You can access your money whenever needed without any penalties or major delays.
- Automatic optimisation– With the threshold amount set, you don’t need to worry about manually transferring funds. ActivMoney automates the process and puts your money to work efficiently.
- Risk mitigation– ActivMoney balances higher returns with a focus on risk mitigation. It is particularly attractive to individuals who seek to grow their funds with minimum exposure to volatility.
Set up ActivMoney for your Current Account today and leverage FD-like interest rates
Don’t let your hard-earned savings lose value over time due to inflation. Take control of your finances and start earning more with ActivMoney, all while keeping your funds easily available. It all starts with choosing the right bank, meeting Current Account requirements, and leveraging the ActivMoney feature. Now, unlock the potential for high interest earnings similar to FDs, but with more accessibility and flexibility.