A Flexi recurring deposit is one of the best recurring deposit schemes. It makes depositors enjoy great flexibility. Here depositors can deposit the money as a lump sum as per the availability and affordability. Unlike a normal recurring deposit scheme, where one has to deposit a fixed amount each month on an RD account. The Flexi recurring deposit account is divided into two sections; one is the core amount deposited by the account holder, and the other is the flexible amount, it keeps on changing according to the amount deposited in the RD account each month. Both the core amount and tenure must be defined in a flexible recurring deposit. The main USP of this scheme is that the variable component could be broken into flexible portions as per the depositor. Only the core amount decided is to be paid on the decided date. The interest rate of the core amount is applicable according to the tenure set by the depositor. The interest rate of the flexible amount is decided to keep in mind the deposit date.

Investing in a recurring deposit is the easiest way to start saving. Unlike fixed deposit schemes, you are not bound to invest a bulk amount in one go. RD offers you the flexibility to make savings in a breakable amount at a frequent interval like monthly, quarterly, half-yearly, or annually.

Another best thing about a Flexi-recurring deposit scheme is that it works best as an emergency saving fund, as one can close it any time. There are no charges for premature withdrawals.

Two sections of Flexible RDS

1. Inclusive of Core amount: Here the deposit made at the time of RD account opening.
2. Flexible amount: Here the flexibility is offered in choosing the monthly installments. The depositor can choose the amount as per the affordability. It is the main flexibility offered in Flexi recurring deposit schemes.

Features of Flexi RDs

1. A minimum amount is required to be deposited in Flexi's recurring deposit account each month. There are no upper limits in the Flexi recurring deposit scheme.
2. The Flexi-recurring deposit scheme is opened with a flexible and variable amount.
3. The procedure of opening a flexible recurring deposit is hassle-free and seamless.
4. Individuals in a recurring deposit account are not allowed to exceed the cap limit suggested by the bank or NBFCs.
5. The interest rates on Flexi recurring deposit when it comes to core amount is set according to tenure and the flexible amount is set according to deposit date.
6. The depositors are also allowed to apply for loans against Flexi recurring deposit amounts. But before applying for a loan, must properly read the terms and conditions of the financial institutions.
7. Another feature that makes this deposit scheme highly flexible is its auto-renewal feature. The process is faster than opening an RD account. Some banks or NBFCs with the permission of depositors automatically renew the Flexi RD on maturity.

Top banks offering recurring deposit schemes

The normal recurring deposit scheme is a kind of term deposit where you are required to make a fixed monthly deposit each month in your RD account. On the other hand, Flexi's recurring deposit offers you the flexibility to choose the amount deposited each month in your RD account.

The core amount decided in the Flexi- RD account has to be deposited on a predetermined date. It is decided at the time of RD account opening whereas in normal recurring deposit schemes, you can make additional deposits as per the capping set by the banks or NBFCs.

The penalty is applicable on late payments in Flexi-RD levies only on the core amount of the FD scheme. In a normal recurring deposit scheme, the penalty is charged on the entire monthly installment.

1. Self-attested ID proof
2. Self-attested address proof
3. Photographs
4. Cancelled Cheque leaf

Bottom line

Shriram City is offering flexible payout to its customers to offer ease of convenience at times of financial emergencies. When you are making fixed deposits with Shriram City Union Finance limited, you can avail of the benefits of a facility like an auto refund and fixed deposit conversions. It also offers a flexible tenure option ranging from 12 months to 60 months. Check here the Shriram City offers on recurring deposits.

We also offer the best of Shriram city recurring advice that you can get higher returns on your recurring deposit investments.

1. What is flexible RD?

   It is a recurring deposit scheme that offers flexibility to the depositor to make savings whenever it is affordable and convenient.

2. Can I withdraw money from a flexible recurring deposit account at times of emergencies?

   Yes, a depositor can withdraw money anytime from the flexible RD account. There are no penalties. But you have to make full withdrawals, as there are no partial withdrawals allowed.

3. What is the minimum amount limit in flexible RD schemes?

   The minimum amount one can invest in flexible RD schemes is Rs 5000.

4. Are senior citizens being provided with additional interest rates on flexible RDs?

   Yes

5. How do flexible recurring deposits work?

   The working of Flexi recurring deposits is almost the same as regular fixed deposits. It comes with one added benefit that is having the flexibility to change the amount of the monthly deposits. The Flexi recurring deposit also serves a dual purpose – both fixed deposits and saving schemes.

   Flexi Fixed Deposit and regular fixed deposit schemes are the same with an added advantage of more liquidity and flexibility and liquidity. Furthermore, certain Flexi fixed deposit schemes are multipurpose in nature. Works both as a savings scheme and fixed deposit scheme.