Saving money is important as it creates the foundation for financial stability and independence. Savings accounts are a simple and effective way to keep aside money for a rainy day while earning interest on the deposited balance. However, keeping money in a savings account alone might not always be the most productive way to utilise your funds as they offer less interest than Fixed Deposits and investments like mutual funds. Moreover, inflation can erode the value of your savings over time.
This is where the ActivMoney facility plays an important role.
ActivMoney is a unique facility that allows you to maximise your savings while always having full access to your funds. By using the sweep-in sweep-out feature, any amount above your threshold limit is automatically converted into a Fixed Deposit (FD) which allows you to earn higher interest rates. The FDs created through this facility usually have a tenure of 180 days. And the best part is there is no penalty or fine for premature withdrawals. Thus, you earn FD-like interest on your savings account balance and at the same maintain full time liquidity.
Given its benefits, let’s explore how to set up ActivMoney for your savings account and make the most of your hard-earned money.
Steps to follow if your existing bank does not offer ActivMoney facility
Some specific savings accounts come with ActivMoney enabled, while some banks may require you to manually activate auto sweep in savings accounts. Simply log in to your online bank account and navigate to the Services or Features tab. Look for ActivMoney or a similar feature (with a different name) and the necessary requirements.
If this facility is not available, you may need to open a savings account with a bank that offers it. Here are the steps:
- Visit your bank website.
- Click on the open online savings account button and it will redirect you to a form.
- Fill out the personal details required on the form.
- Upload the necessary documents required for a bank account in the requested format.
- Once you have submitted the form, your details will be verified, and you will receive your savings account details.
- Maintain adequate balance to make the most of your ActivMoney facility.
Steps to follow if your existing bank offers ActivMoney facility
In case your existing bank offers this facility, you can activate it via its mobile banking app. The steps are:
- Download your bank’s mobile banking app
- Look for the “Service Request” option
- From there, select “Account Service Request”
- Click on the “ActivMoney” option
- You may need to accept the terms and conditions and set some preferences, such as specifying the threshold amount to maintain in your savings account
Now you can enjoy competitive FD-like interest rates on your excess savings account balance while still having access to your funds anytime you need them.
To sum up
Setting up ActivMoney for your savings account is a smart move towards optimising your savings. With its convenient features like automatic transfers and easy tracking, ActivMoney helps you save more without making additional efforts.
So, why rely on regular rates when you can enjoy the best of both worlds; high-interest rates and liquidity of funds? Take the necessary steps to set up ActivMoney and watch as your savings grow. Maximise your returns and gain greater financial stability!