Declaration I/We understand that any impact of changing the sweep-out limit is based on prevailing Savings Account and

Term Deposit interest rates, and the tax benefit arising under provisions of the Income Tax Act, 1961 prevailing as on date and is subject to change and I/we have exercised the above option after considering the same. I/We understand that Kotak Mahindra Bank is not liable to inform me/us of any change in any statutory provisions which may require further review of sweep limit in my /our account. I / We agree and instruct the Bank that the nomination, if any, made by me / us in respect of the Savings Account of which I / we are seeking the benefits of the ActivMoney facility, will be deemed to be the nomination for any sweep TD created pursuant to the ActivMoney facility.

Earn up to

148% higher

returns in your Savings Account. Simply change your

sweep limits.

Signature(s) (If the applicant is minor, guardian to sign)

Date

1st Applicant

2nd Applicant

3rd Applicant
Kotak Mahindra Bank Ltd.

Why should you increase your sweep-out limit?

Kotak Savings Accounts offer ActivMoney facility, where balance above a pre-defined limit is swept from Savings Account into a Term Deposit, thus earning the returns of a Term Deposit. The balance funds which remain in your Savings Account, earn 6% p.a. on balance above `1 lakh and 5.5% on balance up to `1 lakh. What's more, w.e.f. 1st April, 2012, interest earned up to `10,000/- on Savings Account is exempt U/S 80 TTA of income tax Act, 1961. The interest earned on Term Deposits created from the swept balance is subject to tax. By changing the sweep limit, you can move money lying in sweep deposits into your Savings Account and can earn up to 148% higher returns as explained in below mentioned table:. Sweep Deposit Period Return on Sweep Deposit ( Pre tax)* Return on Sweep Deposit ( Post tax)** Return on Savings Account ( Post Tax)*** Growth in return of Saving Account over Sweep Deposit
*Tax applicable @ 30.9%. ** As per applicable current Term Deposit rates and is subject to change *** On balance above `1 lakh Note : 1. 2. The various sweep deposit periods are illustrative only and represent the tenure that money may remain in deposit before being swept back into savings account for utilization. Return has been shown for per annum.

Request for Revision of ActivMoney Sweep Limit

Home Branch Bank Account No. Sweep limit: I/We hereby request the Bank to change my/our existing sweep limit in the above Account as under (please tick on the desired option) Sweep out `250000 `200000 `100000 `50000 ActivMoney ActivMoney is a facility of automatically sweeping out funds above a pre-specified limit from your Savings Account to a Term Deposit (TD) Account for 180 days. In case of insufficient balance in Savings Account, the TD will be broken prematurely and the required amount will be transferred to Savings Account.
Note: Sweep in amount will be swept in the savings account from the Term Deposit as and when required under LIFO (Last in First out) basis to ensure maximum benefit. * For customer falling in highest income tax bracket

Sweep in ` 200000 `150000 `80000 `40000

Recommended option * to avail full tax benefit prescribed U/s 80TTA of Income Tax Act, 1961

7 to 14 days 3.50% 2.42% 6.00% 148%

46 to 90 days 6.50% 4.49% 6.00% 34%

180 days 8.25% 5.70% 6.00% 5%

What is the ideal sweep-out limit?

The ideal sweep-out limit should be `2 lakhs with corresponding sweep-in limit at `1.5 lakhs . This will help maintain an average yearly balance of `1.75 lakhs in your Savings Account. This will help earn a tax free return of `10,000 and avail full benefit of the tax exemption limit prescribed under Sec.80 TTA of Income Tax Act, 1961. Thus benefit from both Kotak Savings interest rate and sweep facility and maximize your overall returns.

How do you change your sweep limits?

In order to increase your sweep out limits for maximum benefits, please fill out the Request for Revision of ActivMoney Sweep Limit form and submit the same to your nearest Kotak Mahindra Bank branch.

Conditions apply

Kotak Mahindra Bank Ltd.