Jio Payments Bank has launched 'Savings Pro,' which allows customers to automatically invest their surplus funds in overnight mutual funds and earn interest up to 6.5%. It has no entry-exit charges and no lock-in period. Additionally, customers will have the facility to instantly withdraw 90% of their investment.
Jio Payments Bank: Jio Payments Bank, a subsidiary of Jio Financial Services, introduced a new service called 'Savings Pro' on Monday. Under this service, customers can upgrade their savings accounts and automatically invest any balance exceeding a set limit into overnight mutual funds to earn better returns. Investments can start from a minimum of ₹500, and an instant withdrawal facility will also be available when needed. This is a completely digital service with no additional fees, aiming to provide customers with a secure and improved savings option.
More Interest on Surplus Funds
Traditional savings accounts often have limited interest rates. However, through Savings Pro, customers can benefit from interest rates up to 6.5 percent. The bank stated that this facility is specifically designed for customers whose accounts often hold more money than a specified limit. This surplus amount can now be invested without any hassle, earning higher interest.
How to Upgrade
Customers can upgrade their existing savings or salary accounts to Savings Pro in a few clicks. Initially, customers will set a minimum limit of ₹5,000. Any amount above this limit will automatically be transferred to overnight mutual funds. The bank informed that up to ₹1,50,000 can be invested in this manner per day.
Who Can Avail This Facility
- New Customers: Those who do not currently have a Jio Payments Bank savings or salary account will first need to open an account and then upgrade it to Savings Pro.
- Existing Customers: Those who already have a savings or salary account can directly opt for this facility. Customers with wallet or Aadhaar A-OTP accounts can also first upgrade to a savings account and then activate Savings Pro.
How to Open Savings Pro
Customers need to download the JioFinance app for this. After selecting 'Savings' under the 'Bank' tab in the app, they must complete the digital onboarding process. Following this, the benefits of Savings Pro can be easily availed. The bank claims that the entire process is digital and requires no paperwork.
Convenience in Withdrawals Too
If needed, customers can instantly withdraw 90 percent of their investment. The maximum limit for instant withdrawal is set at ₹50,000. For withdrawals exceeding this amount, the money will be credited back to the account within one to two business days.
Fees and Charges
The bank has clarified that there will be no entry or exit charges for this scheme. Additionally, no separate maintenance fee will be applicable for Savings Pro. However, a small expense ratio will apply as per mutual fund regulations.
Key Features of Savings Pro
- No entry or exit charges.
- No hidden fees.
- No lock-in period.
- Completely digital process.
- Easy to use via the JioFinance app.
What are the Benefits?
Through Savings Pro, customers will benefit from higher returns as surplus funds are directly invested in overnight funds. Additionally, having both savings and investment information on a single app enhances convenience. These funds are considered low-risk, ensuring the safety of the investment. Most importantly, the option to instantly withdraw a significant portion of the invested amount will also be available.
Minimum Investment Requirement
A minimum of ₹500 will be required to start investing in this scheme. For example, if a customer has set a limit of ₹15,000 and has ₹15,500 in their account, the additional ₹500 will automatically be converted into an investment.
In Savings Pro, not only will the surplus amount be invested, but the remaining balance in the account will continue to earn interest like a regular savings account. This way, customers will benefit from both aspects.
Easy Closure Option
If a customer wishes to close Savings Pro, they must first withdraw the invested amount. After this, the account can be closed under the standard procedure of Jio Payments Bank.
Bank's Objective
Vinod Easwaran, MD and CEO of Jio Payments Bank, stated that currently, interest rates are declining, and customers are seeking options to earn more from their savings. Savings Pro fulfills this need. The company says that this product is designed keeping both new and experienced investors in mind, aiming to provide every Indian with a secure digital option that offers better returns.
