Flexi Fixed Deposit – Features & Benefits Of Flexible FD

Introduction

Are you looking for an investment option that offers the perfect balance between high returns and liquidity? Look no further than a Flexi Fixed Deposit (FD). In this article, we will explore the features and benefits of a Flexi FD, how it works, and why it may be the ideal choice for your financial needs.

Have you ever found yourself in a situation where your savings are locked in a fixed deposit, but you require funds urgently? Traditional fixed deposits lack the Flexibility to withdraw money before maturity. That's where a Flexi fixed deposit comes in. It combines the safety and high returns of a fixed deposit with the convenience of easy withdrawals whenever required.

Understanding Flexi Fixed Deposits

Flexi FDs are unique savings tools that provide the compounding benefits of traditional fixed deposits with added flexibility in terms of investments and withdrawals. Unlike regular FDs, which require predetermined tenors and deposits, Flexi FDs allow customers to tailor their investments based on their individual financial goals.

Benefits of Flexi Fixed Deposits

• Liquidity: One of the key advantages of Flexi FDs is the ability to withdraw funds as needed. Unlike traditional fixed deposits, where premature withdrawals may incur penalties, Flexi FDs offer liquidity without any such restrictions. This makes them ideal for short-term financial needs or emergencies.
• Flexible Investment Tenors: With Flexi FDs, you have the freedom to choose the investment tenor that suits your goals. Whether you want to save for a few months or a couple of years, Flexi FDs offer various tenor options to cater to your requirements.
• Higher Returns: Flexi FDs provide attractive FD interest rates that help your savings grow faster. By leveraging the power of compounding, you can maximise your returns and achieve your financial goals more efficiently.
• Convenience: Opening a Flexi fixed deposit account is a hassle-free process. Most banks offer online account opening facilities, allowing you to open an account from the comfort of your home. Additionally, some banks provide the option of linking your Flexi FD to your existing savings or current account for seamless fund transfers.

Now that we've explored the benefits of Flexi FDs, let's understand how to calculate your FD returns using an FD calculator.

Advantages of Flexi FD

Flexi fixed deposits offer several advantages over traditional fixed deposits. Let's take a closer look:

1. Liquidity with High Returns: Flexi FDs provide the Flexibility to withdraw funds as and when required, making them an ideal choice for emergency funds or short-term savings goals. You can enjoy high-interest earnings while still having access to your money.
2. Customised Investment Tenors: Unlike regular fixed deposits with predetermined tenors, Flexi FDs allow you to choose investment tenors that align with your financial goals. Whether you're saving for a holiday or a down payment on a new home, you can pick the tenor that suits your needs.
3. Easy Withdrawals: With a Flexi FD, you can withdraw funds whenever needed without any penalties or restrictions. This makes it convenient for unexpected expenses or planned investments.
4. Auto Reverse Sweep-In Facility: Some banks offer an auto reverse sweep-in facility that automatically transfers money from the FD to your account when there is a shortfall to honour withdrawal requests. It ensures that your liquidity needs are met without any hassle.

To understand how Flexi fixed deposits work in real-life scenarios, let's explore some relatable situations:

Additional read: Floating Rate Fixed Deposit

Conclusion

Flexi fixed deposits offer a unique blend of liquidity and high returns, making them an attractive investment option for individuals seeking financial Flexibility. With the ability to withdraw funds as required without penalties, customised tenors, and attractive interest rates, Flexi FDs provide a solution for various financial situations.

If you're considering opening a Flexi fixed deposit account or want to explore further options, Mahindra Finance offers a range of financial solutions tailored to suit your specific needs. Visit their website or speak to their representatives to find out how they can assist you in achieving your financial goals.

Don't miss out on the benefits of a Flexi FD—start investing today and enjoy the convenience and returns it has to offer.

FAQs

Q: How can I open a Flexi Fixed Deposit Account?

A: To open a Flexi fixed deposit account, you must fulfil the eligibility criteria set by each bank. Most banks offer options for both individual and joint accounts, catering to the preferences of their customers.

Q: What are the advantages of Flexi Fixed Deposits?

A: Flexi fixed deposit plans allow you to withdraw funds before maturity, providing liquidity in case of emergencies. You can enjoy high-interest earnings while having easy access to your money.

Q: How can I calculate my potential returns on a Flexi FD?

A: You can use an FD calculator available on bank websites or third-party financial websites to estimate your returns based on the investment amount, tenor, and interest rate.

Q: Can I withdraw money from my Flexi FD account anytime without prior notice?

A: Most banks require prior intimation before withdrawing money from your Flexi FD account. However, some banks allow withdrawals via ATM cards or cheques without prior notice.

Q: Is TDS applicable on Flexi fixed deposits?

A: Yes, just like regular fixed deposits, TDS (Tax Deducted at Source) is applicable on the interest earnings of your Flexi FDs.