Are you looking for a solid, safe, secure, and flexible investment to give you access to your funds if needed? If so, a Flexible Fixed Deposit Account may be just the right choice. This type of account offers many beneficial features, such as higher rates of return than traditional savings accounts, along with convenient ways to access your money.
This blog post will explore why investing in a Flexible FD may be the perfect solution for meeting short-term and long-term goals. Read on to uncover all the great benefits of investing in a flexible FD!
Benefits of investing in a Flexible Fixed Deposit
– Flexible Deposit Tenure:
Although traditional fixed deposits provide investors with guaranteed returns, flexible FDs offer an added advantage – the convenience of flexible tenure. As a result, online fixed deposit is undoubtedly the most preferred option by people who want to diversify their portfolios.
Choosing flexible deposit tenure per your financial goals can help you reap maximum benefit from your FDI investment. However, check your bank for minimum and complete deposit tenure requirements before selecting flexible FD.
– Flexible Investment Amount:
You can invest a customised amount at your convenience with flexible FDs. This makes flexible investments ideal for far-sighted individuals looking to grow their money from the comfort of their homes. Fixed deposit is becoming increasingly popular among financial enthusiasts because it provides flexible investment terms and does not lock the capital for the entire deposit tenure.
Different banks have different requirements for flexible FDs, such as minimum balance requirements in savings accounts; some even provide maximum and minimum investment limits. Ultimately, flexible FDs offer more control over investments while providing slightly higher returns than traditional Fixed Deposits.
– Higher Returns:
An online fixed deposit offers flexible investment terms and provides higher returns than regular FDs. Depositors can choose their desired tenure with flexible terms, and the interest rates vary accordingly.
Plus, the longer you stay invested in Flexi FD, the higher returns you can expect to earn. To maximise your returns, it is essential to refrain from premature withdrawals. It’s clear that when it comes to gaining higher returns with flexible options, Flexi FDs come highly recommended.
– High Liquidity:
High liquidity is an advantageous feature of a Flexi Fixed Deposit; it is unique compared to a traditional one. With this type of deposit, you can access your money early without penalty and, depending on the bank, receive the same interest rate had the funds been in the account for longer. Although this is an appealing feature, check the individual bank’s liquidity rules before making that investment decision; they will vary from institution to institution.
– Loan Against Flexi Fixed Deposit:
With a loan against Flexi Fixed Deposit, you can access funds in case of a financial emergency without liquidating your deposit. Most banks offer this loan at a rate of interest higher than the Fixed Deposit.
This makes it reasonably affordable to obtain the funds when needed. For example, if a bank offers 6.5% p.a. on its one-year Fixed Deposit, it might give a loan against the same deposit for approximately 7.5% p.a. to 8.5% p.a., about 1% to 2% higher than the FD interest rate. So, you can easily avail versatile benefits from this type of loan while ensuring your financial security is safeguarded in times of need.
– No Additional Documents
With online banking becoming increasingly common, banks have established the Flexi Fixed Deposit facility to help you save without leaving your house. This facility also offers the bonus of not having to provide additional documentation since your KYC details are already on record with the bank. That said, if your savings account is outdated and needs updated KYC authentication, you will be required to submit the appropriate documents.
Auto-renewal simplifies life, especially with the Flexi Fixed Deposit that offers this feature to its customers. With auto-renewal, your deposits will automatically renew for the same period as soon as they mature.
So there is no need to set reminders or frantically search for old documents – activate auto-renewal and relax, knowing your interest returns are secure. Even if you have multiple deposits, auto-renewal will handle them without any delays, so you can benefit from the same great rate of return!
These are the top features of Flexi Fixed Deposits, making them a great way to save and grow your money wisely.
Whether you’re looking for higher returns, high liquidity, a loan against the deposit, or an easy way to manage your investments – they offer all that and more! So, take advantage of these practical terms today and secure your financial goals.
Also, Check: What Is A Flexi Fixed Deposit And How To Get It?