Flexi Recurring Deposit Schemes: All You Need to Know

A Flexi Recurring Deposit (RD) is similar to a fixed deposit scheme in which you deposit a certain amount to earn interest. However, in RD you make investments on monthly or quarterly basis compared to a single-time investment which is the case with fixed deposits.

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A flexi RD i.e. a flexible RD is well, “flexible”. What it means is that you don’t have to make a fixed deposit every month or so. Instead, you can increase or decrease your deposit amounts as per your convenience.

How does a flexi RD work?

A flexi RD investment can be divided into two parts, which are the core investment and the flexible amount. The first is a fixed amount that you have to deposit when you open an account. Usually, it’s a minimum of Rs. 500 or Rs. 1,000. The flexible amount is the amount you deposit every month just like the regular RD account. However, in flexi RD this amount can vary.
There are many financial institutions that offer flexi RD. For instance, ICICI offers iWish FD deposit scheme which has the following benefits:

• Full flexibility: It’s not mandatory to make a deposit every month and you aren’t penalized for the same. You can make multiple deposits in a month and there is no cap on the deposit amount either.
• Attractive return: iWish offers an interest rate of 6% to 7.25% depending on the term which also varies from 6 months to up to 10 years.
• Social Sharing: iWish allows you to create your financial goals which can be achieved with the scheme itself. However, you can also share these goals on your Facebook wall and your friends/family can contribute to your goals by making deposits through the links shared.

Flexi RD schemes are a great option for the young professionals who want to make investments but are reluctant to make a financial commitment. It’s easily accessible and easily manageable.