What is the concept of flexi fixed deposit?
A Flexi Fixed Deposit account is one of those clever banking options that make managing money far easier. It blends the flexibility of a savings account with the higher returns of a fixed deposit. I like to think of it as a hybrid account that gives you liquidity and solid interest.
You link your savings account to a fixed deposit. When your savings balance crosses a set limit, the bank automatically transfers the excess amount into a fixed deposit to earn higher returns. If your balance drops below a minimum level, the bank reverses the process by breaking a portion of your fixed deposit to maintain your savings balance.
This process suits people who receive regular income and make frequent withdrawals. It’s especially convenient if you don’t want to constantly monitor your account or move funds manually.
The biggest advantage of a Flexi Fixed Deposit is control. You keep easy access to your money while still enjoying the benefits of higher interest rates. Additionally, most banks allow premature withdrawal, which can be beneficial in emergencies.