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Savings Account

What is a flexi bank account?

28 Aug 2024 by Team FinFIRST

Flexi Bank Account

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A flexi bank account is an innovative solution, blending the features of both savings accounts and fixed deposits. This hybrid account structure offers the dual advantage of earning higher interest rates, typically associated with fixed deposits, while retaining the flexibility and liquidity of a savings account. It caters to the modern-day need for convenient access to funds without compromising on the potential for better returns.

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How do flexi bank accounts work?

Flexi bank accounts work differently than regular savings accounts and fixed deposits.

Account structure

A flexi bank account is a savings account linked to a fixed deposit account. The savings account operates like a regular savings account, allowing for everyday transactions. Any surplus funds beyond a certain threshold are automatically transferred to the fixed deposit.

Interest calculation

Interest on a flexi bank account is calculated based on the balances in the individual savings and fixed deposit accounts. The funds in the fixed deposit earn a higher interest rate, while the balance in the savings account earns the standard savings account interest rate. This dual interest calculation ensures that you maximise returns on your idle funds.

Linked accounts

The seamless integration of the savings account and fixed deposit account in a flexi bank account allows for automatic transfers between the two. When your savings account balance exceeds a pre-defined limit, the excess amount is transferred to the fixed deposit account. Conversely, if your savings account balance falls below a certain level, funds are automatically transferred back from the fixed deposit to the savings account.

Flexi bank accounts offers a smart solution for modern savers to optimise their funds with ease and flexibility, ensuring automated savings.

Benefits of a flexi bank account

The following are the benefits of opening a flexi bank account:

High liquidity

One of the primary benefits of a flexi bank account is liquidity. You can access your funds in the savings account at any time, like a regular savings account.

Higher interest rates:

Flexi bank accounts offer higher interest rates compared to traditional savings accounts. The fixed deposit component earns interest rates comparable to fixed deposits, providing an opportunity to earn better returns on your surplus funds.

Automatic transfers:

The automatic transfer feature of a flexi bank account ensures optimal utilisation of your funds. Excess balances are transferred to the fixed deposit account, while required funds are brought back to the savings account, all without manual intervention.

Flexibility:

Flexi bank accounts offer significant flexibility. They combine the benefits of a savings account and a fixed deposit, allowing you to manage your funds efficiently. Whether you need immediate access to your money or wish to earn higher returns, a flexi bank account caters to both requirements.

Conclusion

A flexi bank account offers a unique blend of liquidity, higher interest rates, and flexibility, making it an attractive option. It combines the best features of savings accounts and fixed deposits, providing optimal returns on surplus funds while ensuring easy access to money when needed. However, it is essential to be aware of potential fees, the complexity of the account structure, and interest rate fluctuations.

With a high interest rate savings account from Metra Trust, you can enjoy similar returns of a flexi account with a savings account that offers monthly interest credits to boost your savings. Additionally, you can enjoy zero charges on all common banking services such as ATM withdrawals, deposits at branches, online money transfers, cheque book reissuance, and more. The account opening process is completely online, requiring minimal documentation and providing instant access to your account. Open an account today and start your saving journey!

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Metra Trust or its affiliates to any licensing or registration requirements. Metra Trust shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

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