Flexi Fixed Deposit

A flexi FD is a special type of fixed deposit plan that merges the compounding benefits of a fixed deposit with easy withdrawal facilities of a savings bank account. While regular FDs are secure saving tools, the predetermined tenor and saving amount can become a constraint for depositors.

 

Additionally, these plans lack liquidity benefits as no premature withdrawals can be made once money is deposited into the account. Alternatively, flexi fixed deposits allow customers to pick investment tenors and amounts that best suit their financial goals and permit withdrawals as and when needed.

 

Continue reading to know more about the flexi deposit meaning and banks offering the flexi deposit facility.

Among the several banks offering flexi FDs, here is a list of the top few:

• Union Bank of India

Known as the ‘Union Savings Flexi Deposit Account’, this plan amalgamates the benefits of savings liquidity with the high-interest earnings of an FD.

With a tenor ranging from 46 days to 1 year and a minimum balance requirement of ₹50,000, this flexi deposit plan allows you to easily meet your financial goals.

• Bank of Baroda

With Bank of Baroda’s ‘Suvidha Flexible Fixed Deposit Plan’, you can enjoy high flexi fixed deposit rates, along with the freedom to withdraw funds as and when needed.

Since such flexi fixed deposit accounts can be opened with a minimum deposit of ₹5,000, they are well-suited for young salary earners.

• State Bank of India

SBI’s Flexi Fixed Deposit programs mimic recurring deposits where money can be deposited any time of the month, with no caps on the number of deposits each month. The minimum deposit amount is ₹5,000 for a given financial year, while the minimum lock-in period is 5 years.

• ICICI Bank

Flexi FDs by ICICI Bank allow you to link your savings or current bank account with a flexi deposit plan. The minimum balance mandate for current account holders is ₹20,000, while for savings accounts it is capped at ₹10,000.

 

You also get to enjoy an auto reverse sweep-in facility with your ICICI flexi FD. In other words, money from the FD will automatically transfer to your account when withdrawal requests exceed the sums available in the account.

 

You can pick a favourable flexi fixed deposit tenor from the given 15-91-day time mandate.

• Bank of India

Bank of India’s ‘Star Flexi Recurring Deposit Plan’ is an excellent tool to benefit from the high flexi FD interest rates without compromising on liquidity. This flexi deposit account can be opened on both individual and joint basis for flexible tenors ranging from 12 months to 10 years.

• Axis Bank

To help investors meet their short-term goals, Axis Bank’s ‘Encash 24 Flexi Deposit’ plan comes with a minimum tenor of 6 months. However, the tenor for the plan can be extended to 5 years depending upon your financial goals.

 

You can withdraw from the money deposited in the flexi fixed deposit account via an ATM card or cheque to meet your liquidity concerns as and when the need arises.

Here is a list of the flexi fixed deposit rates offered by some of the top banks.

The main difference between a flexi fixed deposit account and a normal FD stems from the liquidity benefits the former brings to the table. While both types of fixed deposit accounts allow you to earn high guaranteed returns, money locked into the latter cannot be withdrawn before the maturity date.

 

Even if you prematurely withdraw your FD, you will have to pay a penalty charge for the same. However, since flexi fixed deposit accounts are linked to savings or current accounts, you can withdraw sums of money in the event of an emergency.

 

Thus, given their easy liquidity benefits, flexi fixed deposits are more practical saving avenues that act as contingency funds in emergencies.

 

Additionally, when planning to book FDs with attractive interest rates, you can check out a few leading issuers on Bajaj Markets. Compare the rates and choose the one that best aligns with your financial goals.

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