Flexi Fixed Deposits: What are the Benefits of Flexi Fixed Deposits?
Flexi Fixed Deposit: An Overview
Fixed deposit schemes are the most safest and traditional form of investment among Indian investors. For the last many years, Fixed deposit investments have been dominating India. However, it does not allow you to withdraw funds before the maturity date because fixed deposits come with a lock-in period. So, there is a product different from the fixed deposit scheme called Flexi fixed deposit. The Flexi fixed deposit provides features of both saving accounts and fixed deposits. Investors can easily liquidate their money from a Flexi fixed deposit account which makes it a flexible investment option. In this article, we are going to learn about what is Flexi fixed deposit, how Flexi fixed deposit works, its features, the interest rate on Flexi deposit accounts, and the benefits of Flexi fixed deposits.
What is a Flexi Fixed Deposit?
A Flexi fixed deposit account offers flexibility to avail the benefits of both fixed deposit and savings account to the account holders. Fixed deposit schemes come with a lock-in period whereas a Flexi fixed deposit account provides you the flexibility to withdraw your deposit anytime you want to. It provides both features of a high return of fixed deposit and liquidity of a savings account.
A Flexi FD differed from a fixed deposit in various ways. Fixed deposit offers a fixed rate of interest for depositing your money for a fixed tenure whereas a Flexi deposit account holder can choose the tenure which is convenient for them.
- A Flexi fixed deposit account offers flexibility to avail the benefits of both fixed deposit and savings accounts.
- Investors can easily liquidate their money from a Flexi fixed deposit account which makes it an attractive investment option.
- The account holder can withdraw their money from their current or saving account that is being linked with the FFD account.
Flexible FD: Which Banks Offer Flexi Fixed Deposit Schemes?
Several banks in India offer Flexi fixed deposit schemes with better interest rates.
- State bank of India: An individual can open an FFD account with one of the most trusted banks in India state bank of India by investing a minimum amount of INR 5,000. The account holder can choose a minimum tenure of five years and opt for a flexible installment that allows them to increase or decrease their deposit.
- Axis bank: The Flexi FD product offered by Axis bank is known as "Encash 24 Flexi deposit". The minimum tenure of this scheme is 6 months and the maximum is up to 5 years. The account holders are provided the benefits of interest of fixed deposit and liquidity of savings account.
- Bank of India: The Flexi FD product offered by Bank of India is called " Star Flexi Recurring Deposit". The minimum tenure of this scheme is 12 months and the maximum is up to 10 years. An individual also has the option to open a joint account with Star Flexi Recurring Deposit.
- Union bank of India: The Flexi fixed deposit scheme name under Union bank of India is "Union Savings Flexi Deposit Account". The tenure of this scheme ranges from 46 days to one year with an initial investment of INR 50,000.
- ICICI Bank: The ICICI bank offers a Flexi FD scheme that allows its customers to avail the benefits of savings accounts and fixed deposits. The minimum deposit in this scheme is INR 10,000 and the tenure of the scheme ranges from 15 to 91 days.
Benefits of Flexible Fixed Deposit
The benefits of flexible fixed deposit are given below:
- Interest rate: Flexi fixed deposit scheme offers higher interest than that of a regular savings account. Hence, it allows you to earn better returns on your investment. The interest rate ranges from 5 to 6.5%.
- Premature withdrawal: Flexi fixed deposit scheme allows the account holder to withdraw funds before the maturity date without paying any penalty. Hence, it provides liquidity to its customers. However, you must check the rules and regulations of the scheme before deciding to invest.
- Loan benefits: Account holders can avail of loan benefits against their Flexi fixed deposits. However, you need to keep in mind that the loan benefits may vary from bank to bank.
- Flexible tenure: Account holders have the option to choose the tenure of the scheme that suits their requirements. However, you need to keep in mind that the tenure may vary from bank to bank.
- Investment amount: The account holders have the liberty to choose the amount of investment that suits their financial planning. Make sure to check the minimum amount of investment offered by different banks before opening a Flexi FD.
- Auto-renewal: The auto-renewal feature allows an account holder to renew their Flexi FD account automatically at the end of the tenure. So, you do not have to stress about remembering the date for renewing the policy.
- Simple process: The process to open a Flexi fixed deposit account is easy and hassle-free. All you have to do is fill out the form by providing basic information such as your name, contact details, the tenure of the policy, and the amount of investment.
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To conclude, Flexi fixed deposits are a way better investment than fixed deposits because it allows you to deposit your money for a fixed period and at the same time offer flexibility to withdraw your money without paying any penalty. It has features of both savings accounts and fixed deposits. However, you must research the leading banks offering interest rates and features on Flexi fixed deposits before opting for any Flexi fixed deposit scheme.
What is a flexible FD?
Flexi FD is a specific type of deposit that offers features of both saving accounts and demand deposits.
Is the FFD account good?
The account holder is provided with the benefits of both high returns of fixed deposit and liquidity of savings. So, it is considered a good investment option for investors.
Can I withdraw money from flexible FD?
You can withdraw funds from your current or savings account that has been linked to your Flexi fixed deposit scheme.
What is the least term for Flexi deposits?
The minimum term for Flexi deposits ranges from 15 days to 91 days.
What are the eligibility criteria for opening a Flexi fixed deposit account?
The eligibility criteria for opening a Flexi fixed deposit account are:
- It applies to all residents of India.
- Both minors and individuals above 18 are eligible for this scheme.