Flexi Fixed Deposits (FDs) offer flexibility with partial withdrawals and higher interest rates while maintaining liquidity linked to a savings account.
Get up to 9.40% p.a. interest, inclusive of additional benefit of 0.50% p.a. for senior citizens and 0.10% p.a. for women
A flexi FD is a special type of fixed deposit plan that merges the compounding benefits of a fixed deposit with the easy withdrawal facilities of a savings bank account. While regular FDs are secure saving tools, the predetermined tenure can become a constraint. These plans lack liquidity benefits as no premature withdrawals can be made once the money is deposited into the account.
On the contrary, flexi fixed deposits allow you to choose investment tenures and amounts that best suit your financial goals and permit withdrawals as and when needed.
All in all, it allows you to benefit from the accessibility of a savings account and the payout offered by a fixed deposit as it is linked to your bank account. Continue reading to know more about the flexi deposit meaning and banks offering the flexi deposit facility.
Here are some flexi FD plans offered by some of the top banks:
Bank |
Scheme Name |
Features |
RBL Bank |
Flexi Sure Fixed Deposit |
It links your savings or current account to multiple fixed deposits In case of any shortfall in your bank account, funds are transferred back from the FD |
Bank of Baroda |
Suvidha Flexible Fixed Deposit Scheme |
You can open this account with a minimum investment of ₹5,000 Senior citizens can benefit from higher FD rates of 0.50% p.a. |
DBS Bank |
DBS Bank Flexi Deposit |
You can start investing with a minimum deposit of ₹10,000 Liquidate a part of your deposits and continue to earn interest on the remaining amount |
Axis Bank |
Auto Fixed Deposit |
Once the savings account balance crosses ₹25,000, it transfers funds in multiples of ₹5,000 to the linked FD |
Union Bank of India |
Savings Flexi Deposit Scheme |
Minimum sweep-out to the FD stands at ₹10,000 and in multiples of the same amount Minimum sweep-in amount to the linked savings account is ₹5,000 and in multiples of it |
State Bank of India |
e-SBI Flexi Deposit |
FD interest is compounded quarterly, based on the balance maintained at the end of each month |
Note that these aforementioned parameters can change at the discretion of the bank. Check the latest rates on the bank’s website before booking an FD.
These FDs often provide higher returns compared to savings accounts. Check out the flexi FD account interest rate you can get from certain banks:
Note: The interest rates provided above may change depending on the bank’s policies.
Features and Benefits of Flexi FD
Flexi deposits allow you to strike a balance between growth and accessibility. Check out how they blend the stability of fixed deposits with the liquidity of savings accounts.
Premature Withdrawal
You can prematurely withdraw funds before the maturity date whenever required, subject to a small penalty fee, if applicable
Flexible Tenures
These FDs provide the flexibility to choose a tenures that suit your financial goals, which can range up to 10 years
Competitive Interest Rates
You can enjoy attractive flexi fixed deposit interest rates, with some issuers offering additional rates to senior citizens
Automatic Transfers
Surplus funds in your savings account are automatically transferred to the FD, ensuring you earn higher interest without manual intervention
Customisable Limits
Some savings accounts allow you to set a limit on the minimum balance required, after which excess funds are moved
Loan Facility
You can get access to a loan from the financial institution where you have booked your FD by pledging it as collateral
Easy to Start
The majority of financial institutions provide the facility of opening a flexi fixed deposit 100% digitally
Auto-Renewal Facility
You can also enjoy the facility of automatic renewal of your deposit once the tenure ends
While both of these investment avenues offer attractive returns, they differ significantly in flexibility and accessibility.
Parameters |
Flexi Fixed Deposits |
Regular Fixed Deposits |
Liquidity |
These FDs allow you to partially withdraw funds and add more money |
Certain types of FDs have a strict lock-in period before which funds cannot be prematurely withdrawn |
Tenure |
Generally shorter tenures are offered, varying across banks |
Offered at with a range of tenures, from short-term to long-term |
Management |
Auto-sweep and linked to a bank account for cash flow management |
Requires active management for withdrawals; some financial institutions allow auto-renewals |
While flexi FDs have their advantages, they also come with a few disadvantages:
Some flexi FDs may have minimum balance requirements that need to be maintained
While flexi FDs offer the advantage of liquidity, they may impose penalties for early withdrawal
Flexi FDs can have complex terms and conditions compared to regular fixed deposits
While flexi FDs offer the flexibility to withdraw funds when needed, there may be restrictions on the availability of funds
Flexi FDs are more suitable for short-term liquidity needs rather than long-term investment goals
Flexi FD interest rates are lower than regular FDs with fixed tenures since you get the flexibility to withdraw funds throughout the term
It is essential to evaluate disadvantages of Flexi fixed deposits along with the advantages and compare them with your financial goals before deciding on investing in a flexi FD.
As the name suggests, a Flexi FD is a truly flexible fixed deposit option allowing you to earn interest while providing the ease of quick withdrawals. Although the interest may be on the lower side, its convenience and access make it a worthwhile choice.
Opening such an account may be a smart decision if you are looking for a convenient way to save and access funds as a:
Student with recurring fees or expenses
Senior citizen with daily/monthly expenses and sudden medical needs to manage
Business owner with unplanned expenses that may crop up
The information provided by BFDL is related to the rates provided by Banks and Deposit taking NBFCs as available from public domain and under no circumstances is intended to be source of advice or recommendation of any financial investment advice or endorsement of any sort. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers and use of such information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. Display of any intellectual property along with the related product information does not imply BFDL’s partnership with the owner of the intellectual property of such products and is solely for the purpose of information, unless otherwise provided by BFDL.
Other FD Related Pages |
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Frequently Asked Questions
Who can open a Flexi Fixed Deposit Account?
The eligibility requirements to open a Flexi FD varies from bank to bank. Indian Residents, individuals, senior citizens, among others are eligible. Check the criteria beforehand to manage the application better.
What are the advantages of Flexi Fixed Deposits?
With a Flexi FD, you can enjoy the benefits of a fixed deposit along with the flexibility of a savings account. You can withdraw funds from your deposit whenever required.
How can I renew my Flexi FD?
Most financial institutions allow you to renew the FD online via their website or mobile app. You can also opt for the auto-renewal facility for a hassle-free experience.
How can I withdraw money from my Flexi FD account?
Depending on the bank’s policies, you could transfer funds back to your operative account. Others may require you to inform in advance.
What is the minimum deposit for Flexi FD?
While the minimum deposit to start a flexi FD varies across banks, some allow you to begin investing with ₹5,000.
How does a Flexi Fixed Deposit work?
In this type of FD, excess funds from the linked savings account are already transferred to the FD. This way, you can earn high returns while also enjoying the benefit of withdrawals.
Is TDS applicable on Flexi FDs?
Yes, you will have to pay Tax Deducted at Source (TDS) if your total annual interest income is over ₹40,000. Senior citizens need to pay TDS only when their interest income exceeds ₹50,000 in a financial year.
Is Flexi FD good?
Yes, Flexi FDs are an excellent option to enhance your savings without locking it for a specific period. You can earn interest along with enjoying the flexibility of withdrawals from your deposit.
What is the difference between Flexi FD and sweep in FD?
While flexi FD and sweep-in FD are similar, they operate differently. A sweep-in FD automatically transfers excess funds from a linked savings or current account to a fixed deposit, providing flexibility in managing surplus funds. Flexi FDs are independent offerings from banks, where you manually deposit funds and have the flexibility to withdraw money anytime.
What is the Premature withdrawal penalty for Flexi FD?
The penalty for withdrawing your Flexi FD prematurely is typically a percentage of the amount you choose to withdraw. Check with the issuer before going ahead with the withdrawal.
Can I choose the tenure for my Flexi Fixed Deposit?
Yes, you get the flexibility to choose the tenure for your Flexi FD based on your financial requirements.
Can I get a loan against my Flexi Fixed Deposit?
Yes, you can get a loan against your Flexi FD from the financial institution that holds your deposit. You need to pledge your deposit as collateral for the same.
How is the interest calculated in a Flexi Fixed Deposit account?
The interest on your Flexi FD is typically calculated daily or monthly, depending on the amount and the tenure. With a higher amount and a longer tenure, you can earn higher interest on your fixed deposit.
