Flexi Recurring Deposits combine the benefits of recurring deposits with added flexibility, allowing you to vary deposit amounts each month based on your convenience. These deposits offer attractive interest rates, consistent savings opportunities, and are ideal for individuals seeking a flexible yet disciplined approach to building their financial reserves over time.

• Flexi Recurring Deposits combine features of recurring and fixed deposits for enhanced flexibility.
• They allow variable monthly deposit amounts based on your financial situation.
• Attractive interest rates ensure consistent growth of savings.
• Ideal for individuals with irregular incomes or changing financial priorities.
• Encourages disciplined saving habits without fixed monthly contributions.
• Suitable for both short-term and long-term financial goals.

A Flexi Recurring Deposit (Flexi RD) is a modern savings product designed to combine the benefits of recurring deposits (RDs) and fixed deposits (FDs) with added flexibility. Unlike traditional recurring deposits that require a fixed monthly contribution, a Flexi RD allows account holders to vary their deposit amounts based on their financial convenience each month. This feature makes it an excellent option for individuals with fluctuating incomes or those who want the freedom to adjust their savings contributions without penalties.

Key features of flexi recurring deposits

1. Variable deposit amounts:
   The primary feature of a Flexi RD is its flexibility in monthly deposits. Account holders can decide how much they wish to deposit within a pre-set range, offering the ability to save more during financially stable months and less during challenging periods.
2. Attractive interest rates:
   Flexi RDs typically offer interest rates similar to fixed deposits, ensuring competitive returns on your savings. These rates remain fixed for the tenure of the deposit, providing predictable and secure growth of funds.
3. Tenure options:
   Flexi Recurring Deposits come with flexible tenure options, ranging from a few months to several years. This allows savers to align their deposit plans with their financial goals, whether short-term or long-term.
4. No fixed commitment:
   Unlike traditional RDs, there is no strict obligation to deposit a fixed amount each month, reducing the risk of penalties for missed or lower contributions.
5. Premature withdrawal:
   Many banks and financial institutions offer the option to withdraw funds prematurely, although this may attract a nominal penalty. This ensures liquidity in case of emergencies while maintaining a disciplined savings approach.
6. Auto-renewal facility:
   Some financial institutions provide an auto-renewal feature, allowing depositors to reinvest their matured amounts without manual intervention.

Benefits of a flexi recurring deposit

• Convenience: The ability to vary deposits according to one’s financial situation makes Flexi RDs a highly convenient saving option.
• Ideal for irregular income: This product is especially beneficial for individuals with variable incomes, such as freelancers, gig workers, or seasonal employees.
• Encourages savings habit: Despite its flexibility, Flexi RD promotes a disciplined savings habit, helping individuals achieve their financial goals steadily.
• Higher returns: The interest rates on Flexi RDs are competitive, ensuring attractive returns compared to traditional savings accounts.
• Customisation: With flexible tenure and deposit ranges, account holders can customise their savings plans according to their goals.

How does a flexi recurring deposit work?

To open a Flexi RD, individuals can visit their preferred bank or financial institution, either online or in person. After choosing the desired tenure and setting a deposit range, they can begin contributing as per their convenience. Deposits can typically be made via automated standing instructions or manual transfers.

The interest is calculated on the cumulative amount deposited and compounded quarterly or as per the institution’s policy. Upon maturity, the accumulated amount, along with interest, is credited to the depositor’s account.

Who should opt for a Flexi Recurring Deposit?

Flexi RDs are ideal for:

• Individuals with fluctuating incomes, such as freelancers or self-employed professionals.
• Those who want to save without the rigid monthly commitments of a traditional RD.
• Savers looking for higher returns with flexible deposit options.
• People aiming to achieve short-term or medium-term financial goals, such as funding vacations, education, or emergency reserves.

Flexi Recurring Deposits are an ideal savings solution for individuals seeking flexibility without compromising on returns. By allowing variable deposit amounts, they cater to diverse financial needs while offering attractive interest rates. This adaptable yet disciplined approach makes Flexi Recurring Deposits an excellent choice for achieving both short-term and long-term financial goals.