Summary: HSBC and Citi bank have designed a unique product that offers the liquidity of savings account and the higher interest benefit of fixed deposit. Senior citizen will earn more interest on these accounts compared to others.

There’s a number of banking products available in the Indian market today. They give you the flexibility of a fixed deposit as well as a savings or current account simultaneously.

Enjoying the benefits of a savings account coupled with the high returns of a fixed deposit simultaneously is definitely a wise decision. Options are available in the market which offer the unique combination of a fixed deposit and a savings account. Such a smart decision is HSBC's Smart Money account. This uniquely designed scheme helps you to enjoy the higher returns of a fixed deposit.

Simultaneously, you can retain the liquidity and flexibility to meet all your needs. The account can be opened with a minimum fixed deposit of Rs. 25,000. At the time of need, you can withdraw up to 90% through the overdraft facility associated with your account. When you withdraw some amount from your account, you pay interest only on the amount overdrawn, while the interest remains unaffected on your fixed deposit amount.

In case of overdraft, you are charged an interest of 2% over the interest rate being paid on the deposit. The interest is charged on the utilized amount. The interest rate in case of overdraft amount above Rs 2,00,000 is linked to the bank’s PLR policy. Another attractive policy like the above is Citibank Multi deposit plan. this policy is a unique blend of the advantages of savings account and fixed deposit. A normal savings account can offer you an interest rate of 3.5% on the minimum amount held in your account between the 10th and the last day of the month. But,the Citibank Multi Deposit offers customers an interest rate of 5% that is typically higher than the savings rate if you hold the deposit for a minimum period of seven days.

This unique facility, combines the liquidity of a transactional account with potentially higher returns aspects of a fixed deposit. The leveraging technology associated with this account provides convenience to clients. This facility was introduced by Citibank introduced in the early 1990s. The leveraging facility comes especially handy for the customers who may require the funds deposited in their account at short notices.

Senior citizens can enjoy a higher rate of interest on these accounts compared to others. The only criteria for a hike in interest is a minimum amount of Rs 25,000 for a minimum tenure of six months. There is may be need of breaking fixed deposit for short-term needs. The Dual purpose account offer you the facility in such case.