Bangalore: Everyday banks are increasing their rate of interest on Savings Bank Deposits as per RBI regulations, but some banks have also come up with a novel idea of Unfixed Deposits.

In unfixed deposits, customers not only get higher returns but also can avail full liquidity on their deposits. As the name suggests, you can withdraw the funds anytime after 7 days. The rate of interest is also paid at contracted rate that it the fixed interest is calculated upon the amount present till the date of withdrawal, which means no penalty, is charged on premature withdrawals of money.

Let’s check out some more facts about unfixed deposits, as highlighted by ET.

1. An unfixed deposit is a combination of the features of liquidity of a savings bank account and also of higher returns of a fixed deposit. It is usually available for shorter tenures ranging from a week to 180 days (3 months). The rate of interest on unfixed deposits is taxed just life an FD.