Kotak Activmoney, what's the catch here

[theda]

The Kotak Activmoney features without premature withdrawal penalty seem really good but there is a catch here. It says to give 7% interest but the final interest is calculated based on number of days the FD was kept.

For example if you keep the FD for 180 days you will get 7% interest but if you withdraw the money between 46-90 days you will get only 3.5% interest.

In other banks like Indusind with premature withdrawal penalty you only loose 1% of original interest rate. For example if make a FD for 365 days with 7.5 % interest and break it after 90 days you will still get 6.5% interest.

So, it seem Kotak Activmoney has a much bigger premature withdrawal penalty.

 

[shrewdoc]

That 6.5% is per-annum (p.a.)
You never get 6.5 full. Check your calculations again.

 

[NShah]

The Kotak Activmoney features without premature withdrawal penalty seem really good but there is a catch here. It says to give 7% interest but the final interest is calculated based on number of days the FD was kept.

For example if you keep the FD for 180 days you will get 7% interest but if you withdraw the money between 46-90 days you will get only 3.5% interest.

In other banks like Indusind with premature withdrawal penalty you only loose 1% of original interest rate. For example if make a FD for 365 days with 7.5 % interest and break it after 90 days you will still get 6.5% interest.

So, it seem Kotak Activmoney has a much bigger premature withdrawal penalty.

I think every banks have same system to calculate interest on fd

 

[theda]

That 6.5% is per-annum (p.a.)
You never get 6.5 full. Check your calculations again.

In both cases mentioned above the interest rates are p.a. so my calculations are correct.

 

[theda]

I think every banks have same system to calculate interest on fd

No, most banks just reduce the promised interest rate as penality for premature withdrawl. usually 1%
Unlike kotak activmoney which does not promise the interest rate initially but calculate it after fd is broken.

 

[shrewdoc]

You NEVER get 6.5% returns on a premature withdrawal. If so, FDs will become better than equities giving 6.5% every 90 days. 🤣🤣🤣

 

[SSV]

In other banks like Indusind with premature withdrawal penalty you only loose 1% of original interest rate. For example if make a FD for 365 days with 7.5 % interest and break it after 90 days you will still get 6.5% interest.

This is where it is complicated..
It is not 7.5% - 1 %

It is whatever rate applicable for 90 days - 1% penalty rate..

means say 90 day rate is 3.5% - 1% = 2.5% only you will get


So , in the case of Kotak ActivMoney there is no penalty of 1%, so it is actaully beneficial...

Note: You may mark this post as solution, if it answers your question...

Rates: FD Rates | Savings Account Rates | FCNR / RFC Deposits Rates |Recurring Deposits Rates - IndusInd Bank

Planning to opt for a term deposit plan? Find FD and RD interest rates for Indians, NRIs, senior citizens offered by IndusInd Bank. Visit this link to know more.

www.indusind.com

 

[theda]

You NEVER get 6.5% returns on a premature withdrawal. If so, FDs will become better than equities giving 6.5% every 90 days. 🤣🤣🤣

You got me worng here I meant 6.5% p.a. calculated for certain number of days.

 

[theda]

This is where it is complicated..
It is not 7.5% - 1 %

It is whatever rate applicable for 90 days - 1% penalty rate..

means say 90 day rate is 3.5% - 1% = 2.5% only you will get


So , in the case of Kotak ActivMoney there is no penalty of 1%, so it is actaully beneficial...

Note: You may mark this post as solution, if it answers your question...

Oh sorry, My bad
Thanks for explanation but there no option mark as solution

 

[SSV]

Oh sorry, My bad
Thanks for explanation but there no option mark as solution

@ashwink ,@Pavan , @vaibhav111 and @Rkr ..
Can you please help @theda to mark my post as Solution..
Actually I too want to know how to mark a post as solution.. I too don’t know.. Thanks

 

[SSV]

Oh sorry, My bad
Thanks for explanation but there no option mark as solution

DO you see any link saying " Best Answer" for my post??
I think as an Original Poster(OP) , you should see an option called " Best Answer" for every subsequent posts in the thread...
I can see for my OP threads ... I think that is how we do it..

 

[NShah]

DO you see any link saying " Best Answer" for my post??

If iam not wrong Best answer selected systematically

 

[theda]

DO you see any link saying " Best Answer" for my post??

No I don't. There should should be button but I can't see it.

Look at this post

TechnoFino Trophy Points & Levels System

Hello everyone! As some of you have already noticed the new changes visible in their profiles. I am here to make it official for all the community members. We are introducing a points and levels system on this platform for the betterment of the content and giving recognition to the contributors...

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[SSV]

selected systematically

means what?? system selects automaically?? thru AI?? I doubt it

 

[NShah]

means what?? system selects automaically?? thru AI??

Yes I think

 

[RkrRkr is verified member.]

@ashwink ,@Pavan , @vaibhav111 and @Rkr ..
Can you please help @theda to mark my post as Solution..
Actually I too want to know how to mark a post as solution.. I too don’t know.. Thanks

Best answer can be given to any post on the given thread as per merit of the post, but solution can be marked to only question thread.I hope you got my point.

This thread is not a question thread.Its discussion thread.Thread type seletion is available to choose during selection of subject of thread.On this thread only best answer can be given by OP or Mods and the whole best answer post will be shown in geeen background .

 

[SSV]

Best answer can be given to any post on the given thread as per merit of the post, but solution can be marked to only question thread.I hope you got my point.

ok , is this question thread?? and if so how can @theda mark my post as solution...?

 

[SSV]

Best answer can be given to any post on the given thread as per merit of the post, but solution can be marked to only question thread.I hope you got my point.

This thread is not a question thread.Its discussion thread.Thread type seletion is available to choose during selection of subject of thread.On this thread only best answer can be given by OP or Mods and the whole best answer post will be shown in geeen background .

Got it now...

This is what you are talking about right??




Thanks for the info, Learnt a new thing today...

It seems once the thread is created, even the OP can't change thread type from " discussion' to " Question"...

Can you as admin do this for this thread ? or can you mark my above post as solution??

 

[RkrRkr is verified member.]

Got it now...

This is what you are talking about right??

View attachment 32544

Yes.Correct.You got the point and check your answer above how the best answer will look.

 

[SSV]

Yes.Correct.You got the point and check your answer above how the best answer will look.

Have seen my answer.. which is highlighted in green.. Thanks

Okay, for "question" type thread, it is "Best answer".

then for "what type of thread " we can mark as "solution"??