A Flexi Recurring Deposit (FRD) is a variant of the traditional Recurring Deposit scheme that combines the benefits of a regular RD with added flexibility in terms of deposit amounts and tenure. In a Flexi RD, investors are allowed to vary the monthly contribution amount within a certain limit, unlike standard RDs where the deposit amount is fixed. This flexibility enables individuals to adjust their savings as per their financial situation, making it more convenient for people with fluctuating incomes or uncertain cash flow. The scheme also allows for additional deposits, offering more control over the investment while still earning interest at a fixed rate.

The interest rates on Flexi Recurring Deposits are typically similar to those offered by traditional RDs, with the benefit of compounding interest. While the principal and interest are paid out at maturity, some banks may offer partial withdrawals or loans against the FD portion in case of financial emergencies. Despite its flexibility, the scheme retains the low-risk nature of a standard Recurring Deposit, making it an attractive option for individuals who want to save systematically but require some degree of adaptability in their savings plan. It is ideal for people seeking disciplined savings along with the freedom to adjust contributions based on changing circumstances.