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Funds in excess of sweep out threshold limit moves in to Fixed Deposit on daily basis at end of the day as compared to products of many other banks where it is transferred on a fixed day of the week or at a fixed frequency. This feature helps the excess money in the account to earn higher interest for more number of days via the Kotak ActivMoney product
No premature penalty is applicable on Fixed Deposits made through ActivMoney as these are booked for 180 days. Other offerings in the market may charge penalty ranging from 0.5% to 1% on premature liquidation of FDs