A flexi fixed deposit is a hybrid of a savings account and a fixed deposit. It combines liquidity with higher returns through an auto-sweep mechanism. Surplus funds in your savings account are automatically transferred into an FD when they exceed a threshold, and they can be swept back into your savings account when needed. The table below summarises the key features of flexi deposits.
| Feature | Description |
|---|---|
| Auto-sweep | Surplus balance automatically moves from savings to FD to earn higher interest |
| Flexible tenure | Choose tenures ranging from 1 year to 5 years |
| Partial withdrawal | Allowed in multiples (e.g., ₹1,000) without breaking the entire FD |
| Minimum deposit | Generally ₹5,000–₹10,000 for sweep activation |
| Interest rate | Same as regular FDs for the chosen tenure |
Benefits
- Liquidity: Funds are available on demand; only the required portion is withdrawn, so the remaining deposit keeps earning interest.
- Higher returns than a savings account: You earn FD rates on surplus funds.
- No paperwork: The sweep-in facility is automated once configured.
Flexi deposits are ideal for individuals who maintain high balances in their savings account but want to maximise returns without losing access to their money. Confirm the sweep threshold, charges and terms with your bank.
