What do you need in your deposit account?
We asked our users what they value the most in a deposit or a savings account.
The top two needs were –
1/ Higher interest rate or returns
2/ High liquidity – to be able to access the money quickly
When we look at the existing options, none of them fulfils both the requirements. It is always a tradeoff – if you need higher returns (FD) you need to sacrifice liquidity and lock-in your money for long durations. If you have instant liquidity (savings or current account) then you need to settle for lower returns.
Ideally, we would want to be able to earn more on our cash while also have the peace of mind that the money is available in case of any emergency.
We designed SaveSmart for this
It provides you with both of the above – a higher rate of return linked to a basket of liquid funds (currently ~6%) from the top mutual fund companies in India and instant liquidity of up to Rs 2 lakh a day. And the rest can be withdrawn in as little as one business day. Rs 2 lakh of instant liquidity will either cover all your emergency expenses or buy you enough time to get the remaining money in your bank account.
Finally, you have a deposit solution that you want. Higher returns linked to liquid funds, and instant liquidity of up to Rs 2 lakhs for any expense. There is no need to leave your money in low return savings or checking account or locked in a fixed deposit.
This is the deposit account you have been looking for.
How does SaveSmart work?
We have built an algorithm that invests your money in liquid funds from the largest and most reputed fund houses. This ensures your money earns a higher liquid fund returns. Our algorithm also ensures that you have the highest liquidity available to you as instant redemption in case you need the money immediately. So, while each of the liquid fund in our basket offers only Rs 50k instant liquidity, by investing in them smartly we can offer our users up to Rs 2 lakh of instant liquidity.
How do I deposit into SaveSmart?
Just go to SaveSmart page and add money to your SaveSmart amount. If you need KYC we will help you do that too. You don’t have to worry about how much gets invested in which liquid fund, we handle that. Deposit made today in SaveSmart will reflect in your account in up to two business days as per the settlement timelines of liquid funds.
How do I withdraw from SaveSmart?
Equally easy. Once you have made a SaveSmart deposit, go to the SaveSmart tab on your portfolio page. Click on “Manage” and make a withdrawal. At the time of withdrawal, we will inform you how much can be withdrawn instantly. Again, you don’t have to worry about how much to withdraw from which underlying liquid fund. We optimise that for you automatically.
What about the risk?
Liquid funds are debt funds that invest in short-term fixed-interest generating money market instruments. These are funds that take the least amount of risk. They are widely considered to be an ideal investment avenue for an emergency fund. However unlike money in your bank, liquid funds do not have institutional risk, i.e the risk of your bank going under.
For example here is the price history of one of the liquid funds in our basket.
So what are you waiting for?
I need a debit card too…
Oh, you read our mind. A monthly save option and a debit card option is coming to SaveSmart soon.
Did we miss anything? Write to us at [email protected] and we will answer any remaining query.
Interested in how we think about the markets?
Read more: Zen And The Art Of Investing
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