https://en.bharatpedia.org/w/index.php?action=history&feed=atom&title=Flexi_Fixed_DepositsFlexi Fixed Deposits - Revision history2026-08-17T12:50:42ZRevision history for this page on the wikiMediaWiki 1.43.6https://en.bharatpedia.org/w/index.php?title=Flexi_Fixed_Deposits&diff=202479&oldid=prev2409:4062:4E9A:765A:955C:82FE:1759:80FF at 04:59, 29 June 20212021-06-29T04:59:26Z<p></p>
<p><b>New page</b></p><div>A '''Flexi-Fixed deposit'''<ref>{{cite web|url=https://investable.in/flexi-fixed-deposit/|title=Flexi Fixed Deposit (FFD): All You Need to Know About It|accessdate=20 December 2019}}</ref> is a special kind of [[Deposit (finance)|deposit]] offered by [[bank]]s in [[Indian banking|India]] and other countries. It is a combination of a [[demand deposit]] and a [[fixed deposit]]. The [[depositor]] is able to enjoy both the [[liquidity]] of [[savings account|savings]] and current [[bank account|accounts]] and the high [[interest rate|returns]] of fixed deposits.<br />
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== Mode of working ==<br />
A Flexi-Fixed deposit has two features which effectively combine the benefits of savings and current accounts and fixed deposits:<br />
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*The "Auto-sweep feature (sweep-in)": The balance in excess of a stipulated amount is automatically transferred to a fixed deposit (FD) account for a default term of one year. By this transference, amounts in excess of a fixed limit can earn a substantially higher rate of return. FDs formed through auto sweep carry the interest rate on FD of one year, based upon the rate on the day of the auto sweep. Hence, the Flexi Fixed deposit scheme has two components: a savings and current account component, and a fixed deposit account component.<br />
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*Reverse sweep (sweep-out): In case of [[insufficient funds]] in a savings account to honour any [[debit]] instruction (e.g., when the customer wants to withdraw money through [[personal check|cheque]] or through an [[Automated teller machine|ATM]]), the balance in the FD to the extent needed to meet the shortfall is automatically withdrawn in multiples of ₹1000 (or any other amount set by the bank). The remaining [[Balance (accounting)|balance]] in the FD continues to earn higher interest at the original rate applicable to FDs. In the event the customer wants to withdraw more than what is deposited in his savings account, the bank would withdraw money from the fixed deposit component.<br />
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Many banks do not allow customers to take out [[loan]]s against amounts in the FD component of Flexi Fixed deposits.<ref>{{cite web|url=http://andhrabank.in/english/freedomflexi.aspx|title=Andhra Bank|work=andhrabank.in|accessdate=27 April 2015}}</ref><ref>{{cite web|url=http://www.obcindia.co.in/obcnew/site/inner.aspx?status=2&menu_id=27|title=ORIENTAL BANK OF COMMERCE|work=obcindia.co.in|accessdate=27 April 2015}}</ref><br />
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==References==<br />
{{Reflist}}<br />
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[[Category:Banking in India]]<br />
[[Category:Interest-bearing instruments]]<br />
[[Category:Bank deposits]]</div>2409:4062:4E9A:765A:955C:82FE:1759:80FF