How does FD linking on savings account work?

Posted on Wednesday, October 11th, 2023 | By IndusInd Bank

In the rapidly evolving financial landscape, it is crucial to make your money work for you efficiently. One way to achieve this is by linking your Fixed Deposit (FD) with your savings account. An FD-linked savings account offers better interest rates compared to a conventional savings account and, it also maintains adequate liquidity at your disposal.  

In this article, we will explore the reasons why you should consider linking your FD to your savings account, how this unique offering works, its advantages, and a step-by-step guide on how to open an FD-linked savings account online.

Why Should You Link Your FD to Your Savings Account?

Linking your FD to your savings account can be a crucial financial move for several reasons. IndusInd Bank Savings Accounts offer the facility to link your fixed deposit and enjoy better returns along with the liquidity you need to meet your daily expenses. Here are a few reasons why you should link your FD with your savings account.  

• It ensures your idle savings earn more than standard account interest rates. By linking your FD with your savings account, you can make your money work harder without taking on additional risks.  
• It simplifies your financial management. Having both your FD and savings account linked, you can leverage the auto sweep-in feature that automatically books an FD from your excess funds in your savings account. This means that you can access and manage your funds conveniently without manual operations. 
• A linked FD acts as a safety net for your savings account as it offers guaranteed returns on your funds without any adverse effect due to market performance.  
• Psychologically, it also prevents unnecessary spending by making you more disciplined towards savings goals and preventing you from withdrawing funds impulsively. This way, you are less likely to dip into your savings, helping you maintain financial discipline. 

How does an FD-linked Savings Account Work? 

Let us understand the workings of an FD-linked savings account with an example. IndusInd Bank Multiplier Max Savings Account is an FD-linked savings account that operates seamlessly using the Smart Sweep feature. This feature automatically books a fixed deposit as soon as your savings account reaches the threshold limit of ₹20,000. Any amount above this limit gets automatically transferred to your linked fixed deposit account in multiples of ₹1000. Whenever the balance in your savings account falls below ₹10,000, the money from your FD will be pulled back into your savings account.  

With the Multiplier Max Savings Account, you get better returns along with the sufficient liquidity of a savings account to meet your daily expenses. Additionally, this account offers a 25% discount on the locker facility for the first year, and a Platinum debit card to access funds anywhere anytime. You can open this account with a low initial deposit of just ₹10,000.  

When you open an FD-linked savings account, you essentially create a symbiotic relationship between the two accounts and enjoy the best of both worlds. The entire process is hassle-free and can be monitored through the IndusInd Bank mobile app or the online banking platform. It’s a smart and efficient way to manage your finances. 

Advantages of Linking Your FD to a Savings Account

While deposit accounts are still one of the safest investment options, linking them with your savings account is an innovative way to maximise your savings with a fixed deposit. Here are the key advantages of linking your FD to your savings account.  

1. Higher interest rates: The primary advantage of linking your FD to your savings account is the attractive interest rates. You earn more on your savings without compromising liquidity. 

2. Financial discipline: It encourages financial discipline by making it slightly more difficult to access your savings, reducing impulsive spending. 

3. Convenience: IndusInd Bank’s online banking platform makes it easy to manage both your FD and savings accounts from the comfort of your home or office. 

4. Safety net: Your linked FD acts as a safety net, offering financial security in times of need

These accounts offer numerous benefits to grow your wealth rapidly. The features and flexibility offered by an FD-linked savings account are unmatched if you are looking for a safer avenue along with adequate liquidity.  

How to open an FD-linked IndusInd Bank Savings Account?  

Opening an FD-linked savings account with IndusInd Bank is a straightforward process. Follow these four simple steps to open an account with us instantly:  

1. Navigate to the ‘Savings Account’ section and click on the ‘Apply Now’ button. Pick an account number of your choice – yes, you can select an account number of your choice, be it your birthday, or a lucky number that is easy to remember.  

2. Enter your details in the online application form.  

3. Once you have entered the details and submitted the application form, your account activates, and you can now add funds to your bank account.  

4. After adding funds to your account, you need to undertake the mandatory video KYC process. However, worry not as it is hassle-free and can be taken over the video call from the comfort of your home.  

The Bottom Line  

Incorporating an FD-linked savings account into your financial strategy is a wise move. It not only helps your money grow faster but also offers the liquidity of a savings account while promoting financial discipline at the same time. With higher interest rates, convenience, and a safety net, you can achieve your financial goals with ease.  

You can open an FD-linked savings account instantly with IndusInd Bank through online channels. Digital documentation and verification through video KYC make our accounts easily accessible. Another benefit is that you receive the best interest rates in the sector with best-in-class features and the freedom to choose your own account number.  

So, why let your savings stagnate when you can make them work for you? Open an FD-linked savings account at IndusInd Bank today and enjoy the benefits of smarter banking. 

Apply for an IndusInd Bank Savings Account Now!

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.