A Flexi-Fixed deposit is a special kind of deposit offered by Indian banks and in other countries as well. It is formed by combining a demand deposit and a fixed deposit. The depositor opting for a Flexi FD is able to avail of both the liquidity of savings and current accounts and the high returns of fixed deposits. Fixed Deposits have been one of the most popular and traditional saving instruments in India for years.
All flexi-fixed deposits have a major feature that combines the advantages of all three accounts, viz. savings and current accounts and fixed deposits, which is the "Auto-sweep feature (sweep-in)". Under this feature, the excess balance of a stipulated amount is transferred to a fixed deposit (FD) account automatically for a default term of one year.