BRAVO - The game changer for startups

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.