Liquid fund with ATM cards

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 sometime 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.
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.
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.