Flexi Fixed Deposit (FD)

Fixed deposits are one of India’s safest and most traditional investment options. It comes with a lock-in period, during which depositors/investors cannot withdraw their funds until maturity. There are several types of FDs, with flexi fixed deposit being one of them. 

Keep reading to find out more details about a Flexible FD, its features and how it differs from regular fixed deposits.

What is a Flexible Fixed Deposit?

A flexible fixed deposit is a special scheme offered by some major Indian banks and financial institutions. As the name suggests, this scheme is highly popular for offering flexibility and convenience to all depositors/investors. Flexi FD can be considered as a combination of features of fixed deposits and savings or recurring accounts.

It provides individuals with the facility to deposit/withdraw money at any time as per their convenience and financial requirements. A Flexi FD scheme offers higher liquidity options like a regular savings account and attractive interest rates like a regular fixed deposit scheme.

Features & Benefits of Flexi Fixed Deposit

Here is a list of some of the salient features and benefits that depositors can avail of by opening a flexi fixed deposit account. 

1. Minimum Deposit Requirement

A flexi fixed deposit scheme comes along with a minimum deposit limit. This amount varies for different banks and financial institutions, depending upon their associated terms and conditions. 

2. Flexible Tenure Options

This type of fixed deposit scheme offers flexible tenure options to depositors/investors, suiting their financial goals and planning. Generally, the tenure of a flexi fixed account ranges between a few months and years. 

3. Partial Withdrawals

Under a flexi fixed deposit scheme, all entities are eligible to make partial FD withdrawals without breaking an entire deposit and losing the remaining interest income. This scheme enables easy liquidity of an investment without charging any penalty. 

4. Loan against Deposit

It provides a wide range of additional benefits, other than the above-mentioned ones, including a loan/overdraft against deposit facility. Through this scheme, you can avail financial assistance during any sudden emergencies. 

5. Higher Interest Rates

Flexi Deposit is an ideal financial instrument for investors who are looking for a smarter way to increase their wealth in place of regular savings accounts. This scheme typically offers higher interest rates, enabling your FD investment to grow faster.

6. Safety and Security

Like regular FDs, Flexi Fixed Deposits are one of the low-risk investment options that are secure and insured, providing peace of mind to all investors/depositors.

Banks Offering Flexible FDs

Several reputable banks in the country provide Flexible Fixed Deposit options to their customers. Let’s take a look at some of the prominent banks that offer such schemes. 

  1. State Bank of India 
  2. AXIS Bank
  3. Union Bank of India
  4. ICICI Bank
  5. Allahabad Bank
  6. Bank of Baroda
  7. Punjab National Bank
  8. IDBI Bank 
  9. UCO Bank 
  10. Yes Bank

1. State Bank of India

State Bank of India offers a flexi FD to all eligible entities, except minors and NRI individuals. Commonly known as SBI ‘Sarvottam’ (Non-Callable) Term Deposit, this scheme can be booked by investing a minimum deposit amount of ₹1,000.

2. Axis Bank

Axis Bank provides a wide range of fixed deposit products, including Encash 24 Flexi Deposit. To avail of the benefits of this scheme, an individual must hold a savings account and provide valid PAN details to the bank.

3. Union Bank of India

The Union Bank of India provides a Savings Flexi Deposit Scheme, which has the integrated features of a savings account along with a fixed deposit scheme. This scheme is only applicable to Indian Residents, non-government bodies and organisations/agencies.

4. ICICI Bank

Although ICICI Bank offers a flexi fixed deposit scheme that provides higher earnings and flexible liquidity options, this scheme is only applicable to current account holders. Moreover, the existing customers must hold a minimum balance of  ₹1,05,000 in their account to book this scheme. 

5. Allahabad Bank

Flexi Fix Deposit Scheme is one of the FD schemes offered by Allahabad Bank, allowing all Indian residents to earn maximum returns along with flexible liquidity options. To book this scheme, depositors need to invest a minimum FD amount of ₹25,000. 

6. Bank of Baroda

Under the Baroda Suvidha Flexible Fixed Deposit Scheme, a depositor/investor can avail of two different types of interest payout options from the Bank of Baroda. These rates vary, depending upon the tenure of their investment plan. Moreover, an individual can claim a loan against this FD investment, up to 95% of the value.

7. Punjab National Bank

To avail of the above-mentioned benefits of flexi FDs, an individual can also opt for a Systematic Deposit Plan of the Punjab National Bank. Under this scheme, an eligible entity can book a joint account with other entities by investing a minimum amount of ₹100.

8. IDBI Bank

Another addition to the list of top Indian banks offering flexi FD is the IDBI Bank’s Suvidha Fixed Deposit. The minimum deposit amount needed to open this type of FD account with the bank is ₹10,000. Under this scheme, the bank automatically credits the interest income into a depositor’s savings account at regular intervals, determined by himself.

9. UCO Bank

One of the products of UCO Bank, the Flexible Fixed Deposit, is a matchless flexi FD scheme allowing depositors to encash a part of their investment without affecting the remaining part. Through this scheme, a depositor can make withdrawals in multiples of ₹5,000 only. 

10. Yes Bank

Yes Bank offers a convenient reinvestment option by formulating a Flexible Fixed Deposit scheme that is available in various tenures and rates. With minimal risk involved, this scheme provides additional benefits such as different interest payout options and preferential rates for senior citizens. 

Flexi Fixed Deposit Interest Rates

BankTenure Interest Rates
State Bank of India 30 bps over the Card Rate for 1 year tenor and 40 bps over the Card Rate for 2 year tenor30 bps over the Card Rate for 1 year tenor and 40 bps over Card Rate for 2 year tenor
Axis Bank6 months to 5 years Not specified 
Union Bank of India6 months to 10 years5.25% to 6.70% 
ICICI Bank15 to 91 days2.50% to 6.35%
Allahabad BankNot specified Not specified 
Bank of Baroda12 to 60 months 6.75% to 7.55% 
Punjab National Bank 6 to 60 months 5.50% to 8.05% 
IDBI Bank 7 days to 20 years3.00% to 7.00% 
UCO Bank 7 days to 5 years 2.90% to 7.55% 
Yes Bank 7 days to 120 months 3.25% to 8.51%

Difference Between Flexi FD and Normal Fixed Deposits

While on one hand, Flexible Fixed Deposits and regular FDs both are safe and reliable investment options to grow your savings, they also differ in certain key aspects. We will now discuss some of these key aspects. 

  • Interest Rates: Under this scheme, a depositor/investor can avail higher interest rates as compared to regular or stand fixed deposit schemes. 
  • Withdrawal Flexibility: Flexi Fixed Deposits allow partial withdrawals without charging any penalty. On the other hand, most banks generally charge a penalty upon any premature withdrawal of an FD investment in the case of traditional FDs. 
  • Interest Calculation: When calculating the interest income earned from a regular FD investment, the applicable interest rate is applied to the principal amount and tenure. In contrast, the same amount is calculated by applying the applicable flexi fixed deposit interest rate on the remaining balance of a deposit after each withdrawal in the other case. 
  • Tenure Flexibility: A depositor/investor can avail more tenure flexibility from a flexi fixed deposit than compared to a regular FD. While the tenure varies for different banks and financial institutions, an individual can choose a suitable time period that aligns with their financial planning. 


Flexi Fixed Deposits is a modern investment alternative to regular Fixed Deposits, catering to the evolving financial needs of several individuals. With liquidity, higher interest rates, and flexible withdrawal options, these accounts are an excellent choice for those looking to maximise their savings while maintaining financial control. However, make sure to compare the varying flexi fixed deposit schemes offered by different banks and make an informed decision based on your financial objectives and requirements.


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