Flexi Fixed Deposit 9,3/10 265 votes
Flexi Fixed Deposit Published at 2020-07-24 Amount 3 Month Term (per annum) 12 Month Term (per annum) R5 000 - R9 999 0.25% 1.00% R10 000 - R99 999 2.25% 2.50%. Flexi Fixed Deposits The only fixed deposit account that gives you the flexibility to top up and withdraw as you wish. Statement Yearly statement. to help keep track.
A Flexi-Fixed deposit[1] is a special kind of deposit offered by banks in India and other countries. It is a combination of a demand deposit and a fixed deposit. The depositor is able to enjoy both the liquidity of savings and current accounts and the high returns of fixed deposits.
Mode of working[edit]
A Flexi-Fixed deposit has two features which effectively combine the benefits of savings and current accounts and fixed deposits:
- The 'Auto-sweep feature (sweep-in)': The balance in excess of a stipulated amount is automatically transferred to a fixed deposit (FD) account for a default term of one year. By this transference, amounts in excess of a fixed limit can earn a substantially higher rate of return. FDs formed through auto sweep carry the interest rate on FD of one year, based upon the rate on the day of the auto sweep. Hence, the Flexi Fixed deposit scheme has two components: a savings and current account component, and a fixed deposit account component.
- Reverse sweep (sweep-out): In case of insufficient funds in a savings account to honour any debit instruction (e.g., when the customer wants to withdraw money through cheque or through an ATM), the balance in the FD to the extent needed to meet the shortfall is automatically withdrawn in multiples of ₹1000 (or any other amount set by the bank). The remaining balance in the FD continues to earn higher interest at the original rate applicable to FDs. In the event the customer wants to withdraw more than what is deposited in his savings account, the bank would withdraw money from the fixed deposit component.
Many banks do not allow customers to take out loans against amounts in the FD component of Flexi Fixed deposits.[2][3]
References[edit]
- ^'Flexi Fixed Deposit (FFD): All You Need to Know About It'. Retrieved 20 December 2019.
- ^'Andhra Bank'. andhrabank.in. Retrieved 27 April 2015.
- ^'ORIENTAL BANK OF COMMERCE'. obcindia.co.in. Retrieved 27 April 2015.
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NRE FLEXI FIXED DEPOSIT
This Deposit Scheme has integrated features of the Savings Deposit and Fixed Deposit. Through this scheme, you can enjoy the benefits like liquidity and ease of operation of savings account and higher returns on surplus funds like fixed deposits. The details of the scheme are as under: |
Eligibility | NRIs / PIOs/OCIs (other than person resident in Nepal and Bhutan) (Individuals from Pakistan require prior approval of RBI). |
Who can open this account? | Individuals |
Minimum balance in Savings Account | Rs. 50,000/- |
Sweep Out amount (From SB to Flexi Term Deposit account) | Rs. 10,000/- and in multiples of Rs. 10,000/- Upto Rs. 1 Crore per day |
Periodicity of Sweep out | Daily |
Sweep In amount ( From Flexi term Deposit to SB Account) | Rs. 5000/- and in multiples of Rs. 5000/- |
Period of Term deposit | 1 year |
Free benefits |
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*Please note that the free benefit will be available only when the minimum balance is maintained at the time of event. | |
Flexi Fixed Deposit Icici
Rate of Interest
As applicable to Savings Bank Deposit and Fixed Deposit in force from time to time. Interest will be paid on a quarterly basis on the Fixed Deposit and credited into Savings Deposit Account.
Other Features:
- A passbook will be issued to the depositor with all the details of SB Flexi Account, the linked FD Flexi Account.
- No separate Deposit receipt shall be issued by the bank for the Union Flexi Deposit Scheme.
- Nomination facility Available
- No Loan/Overdraft/Lien will be permitted against the linked FD Flexi Account under this scheme