Jio Payments Bank has launched a new facility called Savings Pro, designed to help account holders earn significantly higher returns on funds that would otherwise lie idle. Rather than keeping surplus funds in a savings account earning minimal interest, Savings Pro allows users to set a threshold (starting from ₹5,000) and automatically invests the excess into overnight mutual funds.
Details & How It Works
Threshold & Auto‑Sweep
- Customers choose a minimum balance threshold in their savings‑account. Surplus funds over this threshold are auto‑invested into select overnight mutual fund growth plans. The threshold starts at ₹5,000 in the initial launch phase.
Returns
- The surplus funds invested via Savings Pro are expected to yield up to 6.5% per annum (based on recent overnight fund growth) — a big improvement over typical savings account rates.
Daily Limit on Investments
- Users can auto‑invest up to ₹1,50,000 per day through the facility.
Redemption & Liquidity
- Up to 90% of the invested funds can be redeemed instantly, but with a maximum limit of ₹50,000 for instant redemption.
- Amounts beyond that limit are redeemable in 1–2 working days, following mutual fund settlement rules.
Charges, Fees & Transparency
- There are no entry or exit loads, no lock‑in periods, and no hidden charges. The service is fully digital via the JioFinance app, and customers can track eligible funds, returns, and modify thresholds.
- With returns up to 6.5%, instant redemption options, no hidden charges, and a fully digital process via the JioFinance app, Savings Pro blends the flexibility of savings accounts with the yield potential of short‑term investments.
Significance & Context
- Savings Pro addresses the issue of low returns on idle bank balances, especially as traditional savings account rates have declined.
- It offers a way for customers to leverage short‑term investment tools (overnight funds) while maintaining liquidity and ease of access.
- It also represents innovation in the payments bank / fintech space, combining banking and mutual funds in a seamless way.
- Regulatory constraints apply: for example, payments banks have a limit on how much deposit they can hold per individual (₹2 lakh), which affects how much long‑term saving this tool is suited for.
Static Facts
- Product Name: Savings Pro
- Institution: Jio Payments Bank (subsidiary of Jio Financial Services)
- Threshold Amount: Starting at ₹5,000
- Maximum Daily Investment: ₹1,50,000
- Returns Offered Up to: 6.5% per annum
- Redemption Rules Up to: 90% instant redemption (max ₹50,000); rest in 1‑2 working days