Current Accounts are used by businesses, enterprises, merchants, and even entrepreneurs to manage their day-to-day transactions and finances. While the benefits of Current Accounts are many, including unlimited transactions, easy funding facilities, and customised services, they don’t earn interest. This has always been a drawback for those who keep a large amount of surplus money in their accounts. That’s where new features like ActivMoney come in. With this auto-sweep facility, your funds never sit idle in your Current Account and earn interest while still maintaining a minimum balance and liquidity.
How does an ActivMoney Current Account work?
The ActivMoney Current Account is designed to help businesses earn interest on their idle money. This is achieved through an automated process known as autosweep. Once the funds in your business Current Account cross a pre-set threshold limit, the excess money is automatically transferred to a linked fixed deposit account that offers higher interest rates. The fixed deposits created through ActivMoney are for a duration of 180 days.
This facility ensures that the surplus money in your Current Account earns higher interest rates without any manual intervention. It is a remarkable modern-day banking feature that makes financial management more convenient.
Benefits of using ActivMoney Current Account
- Earn interest on idle funds: With the ActivMoney feature, your surplus money never sits idle and works towards generating more wealth.
- No penalty on premature withdrawals: Unlike most current accounts, you do not have to worry about incurring penalties or charges on premature withdrawals from Fixed Deposits created through the ActivMoney facility. This gives you greater flexibility in managing your finances, as you are free to withdraw money whenever you need it.
- Hassle-free savings: Through the auto sweep facility, funds from your company Current Account are automatically transferred to a linked FD when they exceed the set threshold. This helps to build up your savings cushion without manual effort.
How to use the ActivMoney feature in your Current Account?
Not all Current Accounts offer this facility. Thus, it’s important to check your bank’s Current Account requirements to see if they offer ActivMoney or any other similar facility with a different name. These facilities operate on similar principles as ActivMoney but may have different threshold limits and tenure.
The procedure for opening a Current Account is completely digital, saving you the trouble of visiting a bank branch. Just visit your bank website, log in to their portal, and click on “Open Current Account.” Fill out the Current Account opening form and follow the instructions given to complete the process.
Once your information and documents are verified, you will receive your account details after which you can start banking and enjoy FD-like interest rates on your Current Account balance.
Current Accounts have evolved to become more than just simple tools to manage your daily transactions. With useful features like ActivMoney, you can now earn additional interest on idle funds lying in your account while always retaining full accessibility to your money. This auto sweep feature provides a smart and practical way to make the most out of your money, helping you boost savings and improve your finances.