How To Upgrade To KOTAK White LTF

[CardSeeker]

Currently I have LTF League platinum CC I Want to upgrade to kotak white LTF

Suggestions Pls

 

[shashank08]

Thanks. I have one other question. On Activmoney, the interest is paid after 6 months are completed? It would be really tricky to figure out the amount we should be getting if we use this account a lot. Like in your case, you have a 3 lakh threshold. So you deposit 5 lakhs and 2 lakhs go to FD. Then a month later you deposit 1 more lakh and now the FD is 3 lakhs. Then if you need to withdraw 50k (3.5 lakhs in total) from FD, which one would be broken? The first 2 lakhs or the next 1 lakh? I know it will just take 50k without breaking the rest but will that 2 lakh get 7% interest or just the 1.5 lakhs now? Is it first in first out or last in, last out?

It is last in first out.. rationale is longer the duration of FD higher will be the interest rate in case of activ money.
So in the scenario you mentioned only 50K will be taken out of the latest FD created for 1L.
Rest 50K in the same FD will continue with that tenure.

I hope this clarifies your query.

 

[Lobogris]

It is last in first out.. rationale is longer the duration of FD higher will be the interest rate in case of activ money.
So in the scenario you mentioned only 50K will be taken out of the latest FD created for 1L.
Rest 50K in the same FD will continue with that tenure.

I hope this clarifies your query.

Yes. This is good information. Thank you for the reply. Is this officially mentioned somewhere by Kotak?

 

[Lobogris]

It is last in first out.. rationale is longer the duration of FD higher will be the interest rate in case of activ money.
So in the scenario you mentioned only 50K will be taken out of the latest FD created for 1L.
Rest 50K in the same FD will continue with that tenure.

I hope this clarifies your query.

Thanks. I found official confirmation of what you stated as well:

FDs made through the ActivMoney feature will be liquidated on a LIFO basis, i.e., Last In First Out; the latest deposit is closed first to maximise returns on your deposit portfolio.

 

[helloworld]

Thanks. I found official confirmation of what you stated as well:

FDs made through the ActivMoney feature will be liquidated on a LIFO basis, i.e., Last In First Out; the latest deposit is closed first to maximise returns on your deposit portfolio.

general case for almost all banks in India who providing this type of facility. LIFO rule.

 

[Lobogris]

You can consider any variant depending on your needs.

Neon comes with a MAB of 2 lakhs,
Platinum requires TRV of 10 lakhs and
Black comes with TRV of 1 crore

For activmoney, it shows a predefined threshold value. In my case it is 3 lakhs for my privy platinum account. Everything above that is converted to a pseudo FD for 180 days with an interest rate of 7%.

I'm not sure if this amount can be varied without the bank's intervention.

So, in your case the Privy Platinum with ActivMoney could be a good option 👍

Have you had a good experience with Privy League? Right off the bat, I would lose around 10 to 12k as Activ Money threshold would increase from 25k to 3 lakhs. There is another issue I have thought of as well. In Activ Money, we would have to track when each large chunk was deposited and try and wait 6 months or we would end up losing interest on it. This would be very difficult. In a normal savings where you get 7% or 7.5% interest, you don’t have to worry. If you keep 30 lakhs for 5 months, you get 7% for 5 months. Here, your interest rate would dip if you withdraw it even 1 day before 6 months. So it it ok to save a large chunk while keeping it liquid but less beneficial when you need to constantly use the account.
@shashankvarshney

 

[shashank08]

Have you had a good experience with Privy League? Right off the bat, I would lose around 10 to 12k as Activ Money threshold would increase from 25k to 3 lakhs. There is another issue I have thought of as well. In Activ Money, we would have to track when each large chunk was deposited and try and wait 6 months or we would end up losing interest on it. This would be very difficult. In a normal savings where you get 7% or 7.5% interest, you don’t have to worry. If you keep 30 lakhs for 5 months, you get 7% for 5 months. Here, your interest rate would dip if you withdraw it even 1 day before 6 months. So it it ok to save a large chunk while keeping it liquid but less beneficial when you need to constantly use the account.
@shashankvarshney

Yes this sweep-in facility is more useful when you are not doing a lots of transactions from that account.
Thats why I am using kotak account for emergency fund and not doing any other transactions from that account.

 

[Lobogris]

Yes this sweep-in facility is more useful when you are not doing a lots of transactions from that account.
Thats why I am using kotak account for emergency fund and not doing any other transactions from that account.

That’s a good idea. However, many banks provide 8.5% on FDs as well and that seems better. Still, I will keep a bit with Kotak as well. Do they credit savings interest via Activ Money every month, every quarter or only at the end of 6 months?

 

[shashank08]

That’s a good idea. However, many banks provide 8.5% on FDs as well and that seems better. Still, I will keep a bit with Kotak as well. Do they credit savings interest via Activ Money every month, every quarter or only at the end of 6 months?

Usually 8.5% on fd is with SFBs not with regular banks.
Tenure for that 8.5% is also towards higher side usually 500 to 1000 days.
Regular FD doesn't provide necessary liquidity which is there with sweep-in facility.
So activemoney or other such sweep-in facility is meant to maximize your returns with liquidity.

Activmoney interest credit is at the end of the tenure which is 6 months.

So activemoney I utilize only for emergency fund which I may need anytime as per requirements so liquidity is must in that scenario and activmoney helps in maximizing return when I am not utilizing that fund.

FD is certainly an instrument which should be used as investment.

 

[Lobogris]

So do you keep getting interest at 6 months from the time each installment went into Activmoney or is a calendar quarter 6 months? Like say I open an account today and deposit 2.25 lakhs. Now 2 lakhs go into AM. So I would get interest 6 months from today? What if I deposit another lakh next month and that goes into AM? Would I get all interest together in 6 months from the first deposit or would that 1 lakh get interest separately in 6 months from the day that was deposited?

 

[shashank08]

So do you keep getting interest at 6 months from the time each installment went into Activmoney or is a calendar quarter 6 months? Like say I open an account today and deposit 2.25 lakhs. Now 2 lakhs go into AM. So I would get interest 6 months from today? What if I deposit another lakh next month and that goes into AM? Would I get all interest together in 6 months from the first deposit or would that 1 lakh get interest separately in 6 months from the day that was deposited?

Under the hood.. it goes into the FD.. So first 2L will be a separate FD and next 1L is going to be another FD and interest will be paid out at the maturity of the individual FD.
It will create separate FD accounts for 2L and 1L which will be visible under your NB/MB.

 

[Lobogris]

Under the hood.. it goes into the FD.. So first 2L will be a separate FD and next 1L is going to be another FD and interest will be paid out at the maturity of the individual FD.
It will create separate FD accounts for 2L and 1L which will be visible under your NB/MB.

Thanks. Your knowledge and understanding of finance is exemplary!

 

[sujal]

Any floor limit for zen ? Thinking for an upgrade from league ltf to zen ltf maybe limit can be a issue

 

[sousnake]

Any floor limit for zen ? Thinking for an upgrade from league ltf to zen ltf maybe limit can be a issue

They won't upgrade it until you have other relationship with bank.

 

[sujal]

They won't upgrade it until you have other relationship with bank.

I have a bank account but the issuenis the floor limit they can given me very low limit of 20k so thinking if they would upgrade it or not!!?

 

[DarthYoda]

I have a bank account but the issuenis the floor limit they can given me very low limit of 20k so thinking if they would upgrade it or not!!?

They will, for sure.

 

[harshit_agrawal]

I have Kotak League LTF and want to upgrade to Kotak White LTF, can anyone pls tell the process? Have 5 years old kotak savings account, recently converted to Kotak Privy League Neon.

 

[Lobogris]

I have Kotak League LTF and want to upgrade to Kotak White LTF, can anyone pls tell the process? Have 5 years old kotak savings account, recently converted to Kotak Privy League Neon.

Talk to your RM. I just upgraded from 811 to Privy and they promised White LTF from next quarter. Not sure how useful it is though. I would prefer their Privy League card.

 

[harshit_agrawal]

Talk to your RM. I just upgraded from 811 to Privy and they promised White LTF from next quarter. Not sure how useful it is though. I would prefer their Privy League card.

Have to check whether there is any RM assigned or not. Generally all RMs are useless but let me give a try and see what happens.
BTW why privy league card? As far as I checked rewards are less in that compared to white card.

 

[pratyushpanda]

Talk to your RM. I just upgraded from 811 to Privy and they promised White LTF from next quarter. Not sure how useful it is though. I would prefer their Privy League card.

Upgrade procedure and MAB?

 

[Lobogris]

Have to check whether there is any RM assigned or not. Generally all RMs are useless but let me give a try and see what happens.
BTW why privy league card? As far as I checked rewards are less in that compared to white card.

See the post here about how you can get rewards worth 6400 per year on that card. Otherwise, all Kotak cards are useless. It’s just to collect a Kotak card!