Liquid fund with ATM cards

Mutual Fund with ATM provides higher return than savings bank account & instant access to money

It pays to put money in liquid funds. You get all the convenience of a savings bank account, including the ubiquitous ATM card and also higher returns potential...

For some time now small investors have used liquid funds as an alternative to short-term fixed deposits. However, these funds have now found a new purpose among retail investors looking for the convenience of a bank with the returns of a liquid fund. Reliance Any Time Money Card, provides unit holders of liquid funds the dual benefit of a possible higher returns than money parked in a bank account without compromising on liquidity. The card offers liquidity and features similar to regular debit card. Backed by Visa, the card can be accessed at all Visa networks in India and abroad. You can use the card for shopping, movies, dining, etc. like any of your other debit ATM card. As well as for withdrawing money from any bank ATM like any other debit ATM card.

Getting started
To be eligible for the benefits of the ATM card you need to have investments in the liquid funds from Reliance AMC or their money manager fund, which becomes the primary account. One can add secondary accounts to the card by way of investments in other Reliance AMC's fund schemes. The AMC has a tie-up with HDFC Bank, which allows cardholders to withdraw money from any of Reliance MF schemes at an HDFC Bank ATM. This does not mean that the card usage is restricted to only ATM withdrawals. You can shop the way you do with any debit card using the Reliance ATM card and use the card at other ATMs and merchant establishments. However, the withdrawal from sources other than the HDFC Bank's outlet is restricted to balance in the primary account only.

Benefits

Reliance mutual fund is providing the Reliance ATM card as a better alternative to savings bank account -

·         East Access to Money – Reliance ATM card provides easy liquidity, like your savings bank account, of your Reliance mutual fund money by allowing withdrawal of money from any bank ATM

·         Higher Interest Rate – Interest rate / earnings on your idle money is higher from Reliance mutual fund as compared to the interest earned in your savings bank account. The savings bank account money earns around 4% interest per year. Whereas the same money in the funds of Reliance ATM card will earn around 8% per year

Withdrawal With Reliance ATM Card

The Reliance ATM card provides instant withdrawal and spending facility just like any other bank ATM card. The instant withdrawal facility is different as compared with the traditional way of mutual fund withdrawal where you first submit a withdrawal request and then the withdrawn amount is credited into your bank account

·         Withdrawal Limit – The daily withdrawal amount is 50% of mutual fund balance or Rs 50,000 whichever is lower

·         HDFC Bank ATM – Amount can be withdrawn from any of your mutual funds. Exit load are applicable for withdrawals made from equity and gold funds within 1-year of investment period

·         Non HDFC Bank ATM – Amount can be withdrawn only from primary account mutual funds of “Reliance Liquid Fund – Treasury Plan” or “Reliance Money Manager Fund”

Costs and limits
There is no cost on the card and investors can opt for the same at the time of investing. There are no additional costs or charges involved when using the card, as long as the transactions are in India. Like every savings bank account linked debit card, you can withdraw up to 50 per cent of the scheme's balance or Rs 50,000, whichever is lower in a single day.

At a time when bank savings interest rates range from 4-7 per cent depending on the bank in which you have your account; liquid funds on an average have given more than 9 per cent in the past one year. The popularity of this investing option is still nascent among retail investors. However, HNIs and institutions have a lot to benefit from this option because of their better understanding. With time and increase in awareness, there could be many takers to this ATM card in the future.

Reliance ATM Card can earn higher interest on an idle savings bank account money along with the access and liquidity of the idle amount.