Life can be uncertain. It could be a loved one needing urgent medical treatment or a job layoff, making you worry about your house errands. Your savings and investments help you in tough times. Hence, you should actively save and invest. A range of financial instruments help here.
Flexi Fixed Deposits are a modern financial instrument that is grabbing the attention of every investor for its numerous benefits. It combines features of a Savings Account and Fixed Deposit. It offers incredible liquidity and better interest earnings through the auto-sweep-in facility. You need to set a threshold limit with your Savings Account. The excess balance crossing the threshold limit is transferred to your Fixed Deposit.
This gives you a chance to earn a better interest rate on your money. The following pointers explain Flexi Fixed Deposit in detail:
Simple investment processes
A few minutes is all you need to invest in a Flexi FD. Approach your preferred bank by visiting their branch or via Online Banking. You need to set the threshold limit for your Savings Account. The bank will automatically debit the excess funds when your account balance exceeds the threshold limit.
Decide the investment amount
The bank allows you to decide your investment amount. Consider available financial resources and obligations to determine the investment amount. Typically, consider investing a significant amount as it helps build a considerable corpus. However, if investing a significant amount is beyond your capacity, you need not worry. Invest the amount within your budget. Every investment contribution makes a difference.
Choose the tenure
Banks offer the flexibility to choose your preferred investment tenure. It directly impacts your returns. A longer investment tenure fetches you better returns. Hence, if feasible, consider investing for a longer tenure. If you are worried about meeting your financial needs during the investment tenure, then leading banks let you apply for a Loan against Flexi Fixed Deposit Account.
You can borrow a lump sum amount at a competitive interest rate to meet your requirements. You can apply for a Loan by completing a simple procedure. Upon approval, the Loan amount gets disbursed within the shortest time frame. This way, you can meet your requirements without any hassles.
Withdrawal options
As mentioned, the Flexi FD allows you to enjoy incredible liquidity like a Savings Account. You can withdraw the excess funds invested in the FD without needing to break them. Reach out to the bank and mention the amount of funds you would like to withdraw from your FD Account. The amount gets transferred to your linked Savings Account.
