Jio Payments Bank to launch ‘Savings Pro’: All you need to know about auto-investing savings account

Jio Financial Services Limited subsidiary Jio Payments Bank Limited is preparing to introduce an innovative product named 'Savings Pro'. This was announced at Jio Financial Services Limited Annual General Meeting for 2024-25 on August 28.

Addressing shareholders, Hitesh Sethia, Managing Director and Chief Executive Officer of Jio Financial Services, said that Savings Pro will be India’s first savings account that automatically invests idle cash into overnight mutual funds for better returns.

"The Payments Bank is soon going to launch an innovative new product, called Savings Pro, which will bring to customers India's first savings account that auto-invests idle cash in overnight mutual funds for better returns," Sethia said.

Overnight mutual funds are a type of debt mutual fund that invests in securities with a maturity of just one day. They are considered one of the safest types of mutual funds.

If you receive a large payment today and want to invest it securely until you decide where to allocate it next, an overnight fund is a place.

The Jio Payments Bank's upcoming 'Savings Pro' can significantly benefit investors by combining the safety and convenience of a savings account with the better returns of overnight mutual funds.

Idle money in a savings account earns low interest, typically around 2% to 4% annually. With Savings Pro, this idle cash will automatically get invested in overnight mutual funds, which offer better returns (usually in the range of 4% to 6%) with minimal risk.

Moreover, since overnight mutual funds are highly liquid and virtually risk-free, investors enjoy easy access to their money, much like a regular savings account.

The Jio Payments Bank had a deposit base of over ₹358 crore as of June this year. It was serving over 25 lakh customers. Payments banks have restrictions including a Rs 2 lakh cap on the maximum permissible deposits.

Sethia also said that the parent company has successfully implemented a 'Single Customer View' platform, which gives an "unified view" of customers for "enhanced insights and more effective engagement".

Jio Credit, the non-bank lending entity under JFS, is now present in 11 cities and was managing Rs 11,600 crore in assets as of June, which included home loans, loans against property and corporate loans.