You can earn more money with saving account and fixed deposit (FD).FFD or flexi fixed deposit account is a type of scheme offered by the bank for its customer to avail FD interest rates on your saving account. As saving account has less interest rates in all the banks as compared to any short or long term fixed deposit or recurring deposit.
A common man donot have awareness about this type. Also they donot know how it works,for what duration we have to keep that money in account, how much money they have to keep and many more things.
HOW IT WORKS :
Their is a fixed amount you decide yourself like you have decided 10000 to be fixed every time. So whenever your account balance crosses 10000 it will turn that money in FFD form or you can say block temporarily.Temporary block means whenever you want it will be unblocked and used. Example : Now you need that 10000 as you want to transfer online/offline to your friend. When you will send or use it it will be used their will not be any blocking.
HOW THAT INTEREST IS CALCULATED:
Interest is calculated on the amount and for the duration that money is kept still without any withdraw.Example: That 10000 as ffd in your account is there for 1 year. The bank giving fd interest on 1 year will be given to your that 10000 also.
You can also watch how you can save on loan repayment https://gobankings.com/why-my-loan-amount-is-not-reducing-even-after-paying-regular-emi/ .