Depositing your money into long-term fixed deposits is a common practice among working class to grow their money and save taxes. Long-term fixed deposit are really popular among people because of higher returns along with tax benefits. Apart from the conventional mode of saving money into long term fixed deposits these financial firms have also introduced short-term fixed deposits. These short-term flexi FD as the name suggests offer higher level of flexibility to the investors.
Flexi deposit offers more flexibility to customers for their convenience. It is a modified and advanced form of deposit, which is a good combination of recurring/saving account. Fixed deposit offers higher rate of interest along with liquidity by saving accounts.
Features and benefits of flexi fixed deposits
Higher interest rates on FD: These flexi FD interest rates are higher as compared to saving accounts, which enables individuals to gain more profits in their saved money.
Flexible tenure: Different banks have different tenure for flexi deposits. The minimum tenure to invest in flexi deposit is one day. An individual can opt for a tenure which suits him/her most.
Invested amount: Individuals can select the amount they are comfortable to deposit with the bank. They can opt different amount in different banks according to their financial goals and benefits.
Premature withdrawals: Under these flexi fixed deposits banks allow premature withdrawal from flexi fixed deposit accounts. The terms and other charges may vary from bank-to-bank.
Loan options: Individuals can avail loans against flexi fixed deposits, according to the policies implemented by banks.
Simple and easy to open: It is really simple and fast to open a flexi fixed deposit account. Most of the banks follow the fast and transparent process of deposit account opening.
Auto renewal: Generally, banks allow auto renewal of flexi FDs, ensuring account holders don’t have to worry about renewal.
Difference between flexi deposit & fixed deposit
- Flexi deposits offer flexibility to deposit amount, whereas normal deposit doesn’t offer you such flexibility.
- Flexi fixed deposit allows you to withdraw your amount before the maturity, whereas fixed deposit doesn’t allow you premature withdrawals.
- The tenure of the fixed deposits are longer than flexi deposit.
- Convenience to choose the tenure and amount in flexi deposit, whereas fixed deposits are entitled with pre-fixed tenures.