Honestly, I had the same question when I came across it a while ago. I researched and learnt, it’s actually a pretty smart option for people who want both the flexibility of a savings account and the higher interest of a fixed deposit.
Let me break it down for you.
A Flexi FD, or flexible fixed deposit, is like a hybrid of a savings account and a regular FD. What happens is, your bank links your savings account to a fixed deposit. So, if your savings account balance goes above a certain limit, extra money automatically gets transferred to an FD, where it earns higher interest.
And the cool part is if your balance goes low and you need money urgently, the bank will automatically break the FD partially and move the required amount back to your savings account. No need to break the entire FD or wait for maturity. That’s why it’s called Flexi, because it gives you flexibility and liquidity.
1 Like