Time period flexibility

Most of us take a fixed deposit for a specific goal which could be anything from purchase of an expensive item to child's marriage. These plans might get postponed and the depositor might want to extend the tenure of his FD. In such a scenario, the depositor can wait for the deposit to mature and then reinvest it. But there cannot be surety of interest rate in the future. Some banks have started providing FD options that allow a depositor to extend the tenure without major changes in other conditions.

Breaking deposits

Multiple deposits of smaller denominations can lead to a large amount of paperwork. This is usually done by investors who need money at various stages in future. They are reluctant to deposit everything in bulk to avoid breaking the deposit later.

As a solution to this, banks have introduced products where a bulk deposit is divided into deposits of smaller denominations as per the investor's requirements. Such deposits have a higher earning benefit.