Fixed Deposits (FDs) have long been a reliable savings instrument in India, offering low risk and guaranteed returns. However, traditional FDs have limitations. Flexi Fixed Deposits represent a significant evolution, available through platforms like Bajaj Markets, and are reshaping conventional savings methods.

What Are Flexi Fixed Deposits?

Flexi Fixed Deposits combine the benefits of savings accounts and traditional FDs. They offer the liquidity of a savings account and the higher interest rates of an FD. When the balance in your savings account exceeds a certain threshold, the excess amount is automatically transferred to a Flexi FD. This feature allows you to maximise your returns without compromising on liquidity.

Key Features of Flexi FDs

Here are some of the key features of a Flexi Fixed Deposit:

Automatic Transfers

Excess funds in your savings account are automatically transferred to a Flexi FD, allowing you to earn higher interest rates on idle funds.

Liquidity

Unlike traditional FDs, Flexi FDs allow partial withdrawals without breaking the entire deposit. This means you can withdraw the required amount while the remaining balance continues to earn interest.

Higher Interest Rates

Flexi FDs typically offer better interest rates compared to regular savings accounts. For instance, Bajaj Markets provides access to FDs with competitive rates that could enhance your savings.

Partial Withdrawals

You can make partial withdrawals from your Flexi FD without losing interest on the remaining amount. This ensures access to funds when needed while still benefiting from higher interest rates on the remaining deposit.

Benefits of Flexi FDs

Flexi FDs offer numerous advantages, making them an attractive option for modern investors:

Maximised Returns

By transferring surplus funds to a Flexi FD, you could earn higher interest compared to a standard savings account. This maximises your returns without requiring active management.

Ease of Access

With partial withdrawals, Flexi FDs provide easy access to your money in case of emergencies. This makes them a flexible and convenient savings tool.

No Penalties

Traditional FDs often come with penalties for premature withdrawals. Flexi FDs, on the other hand, allow you to withdraw funds as needed without incurring penalties, provided the minimum balance is maintained.

How to Open a Flexi FD on Bajaj Markets

Opening a Flexi FD on Bajaj Markets is simple and straightforward:

Eligibility

Ensure you meet the eligibility criteria. Typically, this includes being an Indian resident with a valid savings account.

Application

Visit the Bajaj Markets website or app. Navigate to the Flexi FD section and fill out the application form with the required details.

Threshold Setting

Set the threshold limit for your savings account. This is the balance above which funds will be transferred to your Flexi FD.

Approval and Transfer

Once your application is approved, the system will automatically transfer surplus funds from your savings account to the Flexi FD as per the set threshold.

Conclusion

In conclusion, Flexi Fixed Deposits are revolutionising the traditional savings approach. By blending the features of savings accounts and fixed deposits, they offer a more flexible and rewarding way to save. Whether you are a seasoned investor or just starting, considering Flexi FDs could be a wise move to optimise your savings strategy.