Revolutionizing startup finances with auto-sweep FDs and zero-penalty withdrawals
BRAND CONNECT| PAID POST
Published: Sep 26, 2024 06:49:19 PM IST
Updated: Sep 27, 2024 11:53:00 AM IST
When talking about bootstrapped startups, efficient cash flow management is the most important principle, this is because startups often operate on tight budgets and need to ensure that every rupee is working to its maximum potential. However, more often than not most banks have a hard time matching this principle.
But IDFC FIRST Bank's BRAVO feature is different. This feature is exclusive to certain current accounts like the Platinum Current Account, Freedom World Current Account, Startup Current Account and Dynamic TASC Current Account and offers a unique solution that combines flexibility, profitability, and multiple other additional features, making it a valuable tool for startups.
The BRAVO feature operates on an auto-sweep mechanism, & is designed to optimize idle funds. When a startup’s current account balance exceeds the threshold limit set by the customer the surplus is automatically converted into a fixed deposit (FD) in multiples of ₹1,000, with an impressive interest rate of up to 7.25% p.a. on a 370-day tenure. This means that every rupee in the account is working to generate returns, turning idle money into an active growth engine for the business house. Unlike traditional FDs, the BRAVO feature provides flexibility in withdrawals, enabling startups to access their funds as needed without incurring penalties.
Also, for businesses with multiple fixed deposits, the BRAVO feature streamlines the management entirely. When the current account balance falls below the threshold limit, BRAVO feature will automatically target the FD with the shortest maturity. This strategy helps maintain the value of a business’ longer-term, higher-interest FDs, optimizing and maximizing returns. Additionally, BRAVO feature provides a comprehensive transaction ledger for all the FDs, facilitating easier tax filing and accounting.
What really sets BRAVO feature apart is its flexibility. Unlike traditional FDs, which often come with penalties for early withdrawal, the BRAVO feature allows for partial breaking of the FD in units as small as ₹1, attracting 0 penalties. This ensures that startups have immediate access to their funds whenever they need them, without sacrificing the interest accrued on the remaining amount. This is particularly valuable in a startup environment, where financial agility can be crucial to responding to opportunities or challenges.
The benefits of IDFC FIRST Bank’s BRAVO feature for startups in their infant stages are significant. By automatically converting idle funds into FDs, such startups can improve their cash flow management and enhance their profitability. BRAVO feature can also help startups reduce their reliance on overdraft facilities, saving them money on associated fees. Moreover, BRAVO feature’s auto-sweep mechanism and flexible withdrawal options simplify financial management for startups.
Furthermore, BRAVO feature can be integrated with other financial tools and services offered by the bank, and the feature can be activated through net banking, mobile banking and even offline, via the closest branch.
In conclusion, the BRAVO feature is a comprehensive financial tool that can significantly benefit startups. By offering a combination of flexibility, profitability, and additional features, BRAVO feature helps startups optimize their cash flow, enhance their financial performance, and reduce their overall risk exposure. Startups looking to improve their financial management should consider BRAVO feature and incorporate it into their financial strategy.
Disclaimer: T&C Apply. BRAVO feature is available on Current Accounts with Average Monthly balance requirement of ₹2 Lakhs. For more details, please visit: www.idfcfirstbank.com/bravofeature
*The applicable Fixed Deposit (FD) rates are notified on the Bank’s official website and are subject to change from time to time. The interest rate mentioned herein is applicable as on date for the deposits having 370 days tenure. The depositors shall ascertain the FD rates on the value date of FD. In case of pre-closure of FD, applicable bucket rate as per tenure will apply.
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