Jio Payments Bank has announced introduction of a new savings bank named the Savings Pro Account.
Targeted at High net worth individuals and businesses, this bank account could offer customers 6.5% annual returns. Jio announced that the account involves investing surplus funds into overnight mutual funds. Jio also stated this combines benefits of a traditional savings account with the growth potential of low-risk, short-term investments.
Some features of the account:
1. Up to 6.5% Returns: Higher than typical savings accounts which could range from 3-4% per annum.
2. Overnight Mutual Funds: An account’s surplus funds are invested in overnight mutual funds. Overnight mutual funds involve investments into short-term, low-risk instruments such as repos and reverse repos. They are also considered low-risk since the maturities on such debt funds is one year.
3. No Fees & Minimum Balance:
4. Integrates with Jio Payments Bank: Fully digital account offering seamless user experience through the Jio Payments Bank mobile app.
5. High Liquidity: The funds in overnight mutual funds are highly liquid, ensuring customers can access their money whenever needed without significant delays or penalties.
How Does Jio Payments Offer High Interest Rates?
Imagine investing 10,000 in this account. This amount could be invested in overnight mutual funds. The funds would be typically be invested in shorter-periods (24 hours) schemes. Funds may also invested into overnight mutual funds.
