Image Source: Business Standard
Mukesh Ambani’s Jio Payments Bank is set to revolutionize how Indians save and grow their money with the upcoming launch of Savings Pro, India’s first savings account that automatically invests idle balances into overnight mutual funds. This innovative financial product aims to give savers higher returns without any extra effort, blending the convenience of a savings account with the growth potential of mutual funds.
Key Highlights Of Savings Pro
Savings Pro will automatically sweep unused balance from the savings account into overnight mutual funds, which typically offer 5-6% annualized returns compared to the current low savings account interest rates of 2.5%.
-
This product benefits from liquidity as invested money in overnight funds is liquid and available for redemption the next day.
-
Jio Payments Bank currently serves over 25 lakh customers and manages deposits worth over ₹358 crore as of June 2025.
Payments banks like Jio Payments Bank have a regulatory cap on deposits of ₹2 lakh per customer, making this product ideal for emergency funds or monthly expense buffers rather than large investments.
The new offering comes amid recent cuts in savings interest rates (from 3.5% to 2.5% per annum), providing an attractive alternative to stagnant savings returns.
How The Auto-Investment Works
-
When there is idle cash in the savings account beyond immediate needs, it is smoothly transferred into overnight mutual funds without any manual intervention.
-
Returns on overnight funds generally exceed traditional savings account returns, helping customers earn more on the money that would otherwise remain idle.
-
The user experience remains as simple as a standard savings account, with the added benefit of enhanced returns.
-
Customers retain the flexibility to access funds quickly, as the mutual fund units can be redeemed anytime, with amounts credited back the next business day.
Why This Is A Game-Changer
Most Indians keep substantial amounts in savings accounts that earn minimal interest; Savings Pro offers a smart way to boost wealth passively.
This product is particularly appealing to tech-savvy and younger customers who prefer digital-first banking solutions.
By adopting mutual fund investing seamlessly, Jio Payments Bank democratizes access to better financial products without requiring users to actively manage investments.
This initiative aligns with Greater Financial Inclusion and Investment awareness goals promoted by regulators and the government.
It signals Jio Payments Bank’s ambition to broaden its offerings beyond simple payments and remittances into wealth management.
Broader Context And Future Prospects
Jio Payments Bank is part of the larger Jio Financial Services ecosystem, which includes lending (Jio Credit) and insurance services.
Efforts are underway to expand product portfolios through partnerships with global firms like BlackRock (asset management) and Allianz (insurance).
With a growing base of 80 lakh monthly active users on the JioFinance app and multiple digital offerings such as tax filing, savings, and lending, Jio is poised to become a comprehensive financial super-app.
CEO Hitesh Sethia emphasizes a focus on unit economics and relevance to customer needs as the company scales its offerings responsibly under governance guardrails.
Savings Pro is expected to catalyze similar innovation in payments banks, mixing convenience with investment for everyday users.
What Customers Should Keep In Mind
Savings Pro works best for short-term funds meant to stay liquid and available for monthly expenses or emergency needs.
-
Given the ₹2 lakh deposit cap and fund investment, it’s not suited for parking large amounts long term.
-
Though overnight mutual funds are low risk, returns can fluctuate slightly with market conditions.
-
Tax implications on mutual fund returns will apply, so customers should plan accordingly.
Always consider personal liquidity and risk comfort before opting for auto-investment features.
In Summary
Jio Payments Bank’s Savings Pro promises to change the savings landscape by merging the ease of a bank account with the higher returns potential of overnight mutual funds. Designed for the modern Indian user, this product offers an effortless way to make idle money work harder, ensuring better wealth growth without added complexity. As one of the first movers in this space, Jio Payments Bank is opening new doors for retail investors seeking smarter savings solutions.
Source: Business Standard, CNBC TV18, Economic Times, Angel One, YouTube Business Standard
Advertisement
Advertisement
