Flexi Fixed Deposit: Benefits and Difference from regular FDs

Today's age is not all about investing in a scheme and waiting for years to get profitable returns while inflation increases year by year. People today need flexibility in their investment options. Fixed Deposits (FD) are the most common and traditional way of investing money to gain steady returns after maturity. Here comes the Flexi Fixed Deposit, which is a dynamic and modern way of investing money; this is a revolutionary way of investment that offers flexibility while we increase our income. This investment scheme is what today's people seek: a flexible and convenient way of investing while promising growth.

This article will provide you with all the information you need about Flexi Fixed Deposit, its benefits, and features:

About Flexi Fixed Deposit

A Flexi FD, also called a Flexible Fixed Deposit, combines a fixed deposit and a demand deposit. It provides the benefits of three accounts: a fixed deposit, a current account, and a savings account. You can get through Flexi FD both the high returns of a fixed deposit and the liquidity of current and savings accounts.

Key Features of Flexi Deposits

Let's look at the major features of a Flexi Fixed Deposit that might be deemed useful for you:

Flexible Saving with Fixed Earnings:
A Flexi Fixed Deposit offers you the flexibility of a savings account and the assured earnings of a fixed deposit. You can enjoy the best of both worlds.
Automated Funds Management:
This unique feature allows surplus funds in your savings account to automatically move to your fixed deposit. There is no need for manual transfers; your money is put to function smartly.
Partial Withdrawals:
Unlike traditional fixed deposits, you can access your money without breaking the entire deposit. Only the necessary part is withdrawn, leaving the rest intact for future use.
Daily or Monthly Interest:
Interest is calculated regularly on your balance, whether daily or monthly. The more you save and the longer you save, the greater the interest you'll earn.
Liquidity with Earnings:
Need to address unforeseen expenses? With a Flexi Fixed Deposit, you can handle immediate financial needs without losing out on earnings.
Dual Account Benefits:
With a Flexi Fixed Deposit, you not only benefit from the fixed deposit component but also maintain a linked savings account for regular transactions.

Benefits of Flexi Fixed Deposits:

Let's talk about the benefits a Flexi Fixed Deposit offers to its account holders:

Earning Better Returns:
One of the primary advantages of opting for a Flexi Deposit is the opportunity to earn better returns on your investment. Flexi Deposit interest rates are typically higher than those of a standard savings account. This means that your money can grow more effectively over time.
Invest What You Choose:
Flexi Fixed Deposit allows you to select the amount you want to invest. While the specific criteria may vary among banks, you can contribute a lump sum that aligns with your financial capabilities and objectives.
Custom Investment Duration:
Another attractive advantage of Flexi Deposits is the flexibility in choosing the investment tenure. You can select the duration that best suits your financial goals, whether you prefer a short-term investment or a longer commitment.
Convenient Withdrawal:
Many Indian banks offering the Flexi Deposit scheme understand that life can be unpredictable. They allow premature withdrawals, providing a safety net for unforeseen expenses. This convenience sets Flexi Deposits apart from traditional fixed deposits that lack this flexibility.
Simplified Account Opening:
Opening a Flexi Deposit Account is a hassle-free process. Most banks offer a transparent procedure. All you need to do is fill out a form and provide essential details, such as your desired investment amount, chosen tenure, and contact information.
Access to Loans:
An additional benefit of the Flexi Deposit is obtaining loans or credit against your deposit. However, it's essential to note that the terms and policies for loans against a Flexi Deposit may vary between banks. To fully understand the specifics, you should inquire with your bank.
Automatic Renewal:
For those with multiple investment schemes, keeping track of maturity dates can be quite challenging. The Flexi Deposit scheme often includes an auto-renewal feature. You need not worry about remembering renewal dates, as the bank will automatically renew your deposit upon maturity.

Difference between Flexi Fixed Deposits and Regular Fixed Deposits

Regarding managing your finances, Flexi Fixed Deposits offer a distinct advantage over regular fixed deposits. The key lies in their flexibility, providing convenient access to your funds whenever needed. Unlike traditional fixed deposits, Flexi Fixed Deposits empower you to avail of loans, making your financial planning even more versatile. Moreover, with Flexi Fixed Deposits, you can withdraw specific amounts from your linked savings or current bank account seamlessly integrated with the scheme.

Flexi Fixed Deposit Offers

Many banks in India are now offering Flexi Fixed Deposit schemes with competitive interest rates. Let's talk about some of these offerings:

Union Bank of India (UBI):
UBI's 'Union Savings Flexi Deposit Account' brings together the advantages of fixed deposits and savings deposits. It's designed to cater to a diverse customer base with varying financial goals.
Allahabad Bank:
Allahabad Bank's 'Flexi Fix Deposit' scheme aims to maximize interest for customers, ensuring they enjoy substantial returns. Simultaneously, it provides the flexibility of liquidity for their funds. A minimum of Rs 25,000 is mandatory to start a Flexi deposit account.
State Bank of India (SBI):
With a minimum deposit of Rs. 5,000, you can start SBI's Flexi Fixed Deposit scheme, which offers flexible tenure options starting from 5 years. This scheme empowers customers to customize their deposit amounts through flexible installments.
Axis Bank:
Axis Bank's 'Encash 24 Flexi Deposit' stands out by providing the liquidity typically associated with a Savings Account, coupled with the interest benefits akin to Fixed Deposits. The scheme offers flexible terms spanning 6 months to 5 years.

Conclusion

Flexi Fixed Deposit is your go-to investment option if you are seeking a convenient and flexible investment option. Many Indian banks offer such facilities with key benefits that provide a steady income for coming years. You don't need to worry about your amount to lock for years, and you can opt for withdrawals in emergencies or important matters.