2. In case of unfixed deposit, the rate of interest is mentioned at the time of process initialization, just like FD. However, you can withdraw funds during the tenure of the deposit without losing out on any interest.

3. As per the scheme of unfixed deposit, banks mention a minimum period for which the funds need to be parked (7 days in most cases). Any withdrawals before the minimum period do not attract any interest on the deposit.

4. The interest is paid at the contracted rate that is if the rate of interest is 8.5 percent, then this same amount will be charged up to the date of withdrawal of funds. Even if any partial withdrawal is made, the balance continues to earn the interest at the specified rate.

5. The deposit can be used for parking funds for a short tenure and this is fixed against a liquid scheme of a mutual fund. Therefore, it targets both, institutions as well as individuals with different interest rates and ticket sizes.

Therefore unfixed deposit is very ideal for Companies Firms, Societies, Institutions Trust, Associations and for individuals.

Also Read: Investment Options for Longer Term Fixed Income