Knowing The Benefits of Investing in Flexi Fixed Deposit
July 18, 2019
If you have a bank account, you would probably know what is a Fixed Deposit. But, have you heard about flexi Fixed Deposit scheme? Read on to know more about what it is and its benefits.
Fixed Deposit investment has been one of the most popular and traditional savings instruments in India since a long time. One of the major reasons why people prefer investing in Fixed Deposit schemes is that it is the safest investment schemes, which also provides a decent return. Over the years, the banking processes in India have evolved tremendously and many new products and investment schemes have been introduced. One such product is the Flexi Fixed Deposit, which combines the features of Fixed Deposits and Savings Account. Let us read its benefits:
Higher Rate of Interest
Flexi Deposit interest rates are higher than the Savings Account rate. As a result, you can be sure to earn better returns on your investment.
Flexibility to Choose Your Own Investment Amount
Flexi Fixed Deposit scheme requires you to pay a lump sum amount once. You have the liberty to choose any amount you want to invest. Different banks have different deposit criteria, make sure to check with the bank before opening your Fixed Deposit account.
Flexibility in Investment Duration
You can choose your investment tenure to suit your needs. This means that, you can stay invested for as long as or as shorter duration as you want to suit your financial goals.
Most banks in India that allow you to invest in the Flexi Deposit scheme, allow premature withdrawal of your investment. This makes it a more preferred and convenient investment option than the traditional Fixed Deposits that did not have the premature withdrawal option. The flexibility of early withdrawal of Flexi Fixed Deposits allows you to liquidate the investment in the event of any emergency.
The process of opening a Flexi Deposit Account is easy. Most banks in India have a very transparent process; you have to fill a form and provide basic details like the amount you want to invest, the duration for which you want to invest, and the contact details including address and phone number.
Loan Against Deposit
You can avail of loan/credit against the deposit. It is advisable that you check with the bank about their policies for loan against Flexi Deposit as it varies from bank to bank.
If you have invested in multiple investment schemes, it can get difficult to remember the maturity dates and sometimes you may miss renewing the investment. With flexi deposit scheme, you need not go through the hassles of renewal process, most banks offer auto renewal facility to the investors. You need not remember the dates, the bank will automatically renew the deposit on maturity.
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