I recently researched about Money Multiplier Fixed Deposits (MMD) and wanted to know more about MMD and How does the Money Multiplier FD different from a regular FD ? Which one is better FD or MMD ?
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Money Multiplier Fixed Deposit (MMD) is a concept which measures the amount of money created by banks with the help of deposits after excluding the amount set for reserves from the deposits.
Money Multiplier FD differs from a regular FD by offering tiered interest rates based on tenure, allowing partial withdrawals without penalties, and providing options for interest reinvestment.
Money Multiplier FD is an innovative financial product that allows you to earn higher interest rates while maintaining access to your funds. Unlike regular fixed deposits, money multiplier FD features include maximised returns and greater flexibility.
| Basis | Fixed Deposit ( FD) | Money Multiplier Fixed Deposit (MMD) | |
|---|---|---|---|
| Online Management | May not offer complete online Management. | Fully accessible online. | |
| Liquidity | It has lower liquidity. | More accessible through partial withdrawals. | |
| Auto Renewal | Not available sometimes. | Available. | |
Great product to know about but still if we want a good return and that money can be invested for 1 year or more then you can go for bonds which give much more returns, or else go with small finance bank FD’s which offer better interest rates and have multiple so you dont have to break them in one go so MMD is useless in my opinion
Yeah true, bonds and small finance bank FDs usually give better returns. And opening multiple small FDs also helps since you don’t need to break the full amount.
The only plus point of MMD is convenience — you don’t have to manage many FDs. For example, if you have ₹1,00,000 and need ₹20,000, the bank only breaks that part and the remaining ₹80,000 keeps earning FD interest.
In the end, it’s just about choosing between higher returns or easy access to money.