Flexi Deposit

/ Comments off

Finance House provides a convenient solution: the innovative Flexi Deposit. Flexi Deposit is a premium version of a Call Account in that it pays interest similar to Fixed Deposits yet provides the flexibility to withdraw at short notice. November 29, 2018. An RD is one of the easiest ways to start your savings. Unlike a Fixed Deposit (FD), where you need to invest a bulk amount, an RD lets you save small sums of money at fixed intervals. This way, your initial burden reduces and you can set aside a.

  • A Flexi-Fixed deposit is a special kind of deposit offered by Indian banks and in other countries as well. It is formed by combining a demand deposit and a fixed deposit. The depositor opting for a Flexi FD is able to avail of both the liquidity of savings and current accounts and the high returns of fixed deposits.
  • A flexi fixed deposit, as the name suggests is a fixed deposit which offers flexibility and convenience to customers. It is a combination of a fixed deposit and a recurring/savings account, ensuring customers get the benefit of high interest rates offered by Fixed Deposits, plus liquidity offered by saving accounts.

When you have a lump sum amount in your pocket and you are confused where to invest the first thing which comes to your mind is investing the amount in fixed deposit. The fixed deposit is one of the most preferred way of investing money. In fixed deposit you block your money for a longer period such as for five years, 10 years or 20 years depending upon the tenure you have opted to invest your money. As this is a long term investment and some people hesitate to invest money for so much longer period.

There are people who want to have easy access to their money and they want to invest their money for a shorter duration due to other financial liabilities or other. For such investors the banks have come up with various options to invest their money for shorter duration the among these options flexi deposit is also very popular. Flexi deposit is one such investment instrument, which is equally popular among investors. It is very helpful in saving your money and achieving financial goals. But, some people got confused between these two investment tool. It is not very simple to make the decision as both have some advantages and disadvantages. So, it becomes more important to understand the differences of these two investment instruments and find out which one offers you more benefits.

Let's find out some main differences between these two investment tools.

Different objective: Both the saving schemes have different objective. In fixed deposit you save money for longer duration for 3 years to 20 years and the term is pre-fixed. But in flexi deposit you choose a duration which is more convenient to you from one month to 15 months or more. In fixed deposit for longer tenure you deposit big amount, but in flexi deposit you deposit short amount on monthly basis, which converts into a big amount after maturity.

Short duration Vs. Long duration: The duration of the flexi fixed deposit and long term fixed deposit varies. The flexi fixed deposit you can avail from minimum 7 days to maximum 2 years. Besides, the long term fixed deposit is available for 5 years to 20 years. You can choose the tenure as per your ease. There is a huge difference in the duration of the flexi deposit and fixed deposit duration. Fixed deposit duration does not provide you flexibility where as flexi fixed deposit is popular becuase of its shorter and flexible duration.

Loan facility: There is no loan facility for flexi fixed deposit or short term fixed deposits. But, for fixed deposits of five years or more offers you facility to borrow the loan against the fixed deposit. You can borrow the loan of upto 90% of the amount of fixed deposit. This find of facility is not available for flexi deposits.

Tax benefits: Flexi fixed deposit does not offer you any kind of tax benefits, but long term fixed deposits such as five years fixed deposits or above five years offer you tax benefits under section 80C of income tax.

Difference in interest rates: The returns in longer duration fixed deposit is higher than the flexi fixed deposits. The interest you earn on your flexi fixed deposit is lower than longer duration fixed deposits.

Withdrawal facility: You can withdraw your amount from flexi fixed deposit any time whenever you are in need. The money will be credited into your account within 24 working hours. Besides, in five years fixed deposit you can't withdraw the money before the tenure and in case you do so, you can't claim the tax benefits anymore on your fixed amount.

(Updated on:26th October,2016)

Open Flexi Deposit in SBI : State Bank of India is undoubtedly the best bank in India providing a lot of banking products for its customers. If you have want to save some flexible amount of money any number of times in a year, it is a good idea to get a SBI Flexi Deposit Account. On the Flexi Deposit Amount, you will be getting a fixed rate of interest from the Bank, depending upon the Deposited Amount and Period of Flexi Deposit. However, the interest will be taxable. When you open a Bank Account in SBI, you can open a flexi deposit account as well. Even at a later stage if you are planning to open Flexi Deposit in SBI, you can get it. In this Article we will tell you the procedure to open flexi deposit in SBI. Don’t forget read one of our previous articles on how to open Recurring Deposit in SBI and how to open SBI Fixed Deposit.

Flexi Deposit is considered to be a safer and convenient investment option as compared to other investments like shares or the mutual funds. Opening a flexi deposit account in SBI is a quick and easy process. What you have to do is to just deposit the first instalment of the Flexi Deposit and enjoy interest in the specified period.

In this Article, we will tell you how to :

  • Open Flexi Deposit in SBI Online through Internet Banking
  • Open Flexi Deposit in SBI by Branch Visit

How to Open a Flexi Deposit in SBI ?

Before we tell you the complete procedure to open Flexi Deposit in SBI, let us tell you what is a Flexi Deposit.

Flexi Deposit

What is a Flexi Deposit ?

Flexi Deposit is a type of Term Deposit which is offered by most of the banks in India which needs the account holder to deposit a flexible amount every year into their Flexi Deposit account and earn interest on it.

How to Open Flexi Deposit in SBI Online ?

In order to open a Flexi deposit in SBI Online, you need to follow the step by step procedure given below :

1)Login to Online SBI Account using your Internet Banking Username and Password.

2) Select on the E-Fixed Deposit option on the Top Menu. Once you click on the E-Fixed Deposit Tab, you will reach another page.3) Click on e-RD / e-SBI Flexi Deposit option on the left sidebar.

4) Select e-SBI Flexi Deposit radio button and click on Proceed.

5) Enter the Amount of which you want to open the Flexi Deposit & Scroll down.

Note : Senior Citizens must click on the box which says ‘Senior Citizen’. Kindly note that Senior Citizens get higher Interest Rates.

6) Select the Tenure of Deposit i.e., Select the Number of Years & Months for which you want to open the Flexi Deposit Account in SBI.

Select from the Maturity Instruction for your Flexi Deposit Account dropdown :

  • Payback Principal and Interest : Select this Option if you want to receive the Principal and Interest at the time of Maturity of your flexi deposit account, or
  • Convert to STDR : Select this Option if you convert the Principal+Interest into a Fixed Deposit at the time of Maturity of your flexi deposit account.

Once you select one of the Maturity Instructions, tick mark on the box corresponding to ‘I Accept the terms and Conditions’ and click Submit button.

Note : Flexi Deposit Account in SBI can be opened only between 8:00 am to 8:00 pm on all working days, otherwise it will be scheduled for next working day. Your SBI Flexi deposit account will be mapped to the Net Banking account.

You will be notified at the time when your Flexi Deposit is going to mature. This is done so that you can take necessary action for it.

These are the complete steps to open Flexi Deposit in SBI Online. Let us now know about the process to open SBI Flexi Deposit by Branch Visit.

Also Read :: How to Open Demat Account in SBI ?

Icici Flexi Deposit

How to Open Flexi Deposit in SBI by Branch Visit ?

In order to open a Flexi Deposit in SBI by Branch Visit, you need to follow the step by step procedure given below :

Flexi Deposit Icici

1) Visit the SBI Branch in which you want to open your Flexi Deposit Account.

2) Collect the SBI Flexi Deposit Account Opening Form from the Accounts Executive.

3) Fill up the Flexi Deposit Form carefully, re-check the filled up form and put your signature wherever needed.

4) Submit the self attested Copy of your Address Proof and PAN Card along with theFlexi Deposit Form to the Accounts Executive.

5) Once your Flexi Deposit Form and Documents are verified, you will need to deposit the first Instalment of your Flexi Deposit through the Cash Deposit Window.

Hdfc Flexi Deposit

6) Finally, your SBI Flexi Deposit Account will be opened and you will be given your Flexi Deposit Account Number and related documents(if any).

Flexi Deposit Calculator

These are the the complete steps to open Flexi Deposit in SBI by visiting SBI Branch.

Sbi Flexi Deposit Scheme

Final Words :

Flexi Deposit Account

You might have noticed that opening a Flexi Deposit in SBI is quite an easy process and does not take much time. Although both online and offline processes are simple, but it all depends upon your convenience which one you want to use. If you have SBI Net Banking Account, you can easily open a Flexi Deposit in SBI in not more than 4-5 minutes.

Lmu Flexi Deposit

READ ALSO :