interest rate: short term FD vs normal savings account

[ltf4ever]

hdfc savings account interest rate is 3%. FD interest rate is also 3% for FDs booked upto 30 days.

I was wondering whether there was any particular advantage and situations in which people would make a 30 days or less FD.

 

[Tosh]

One possible reason can be to curb unnecessary expenditure since breaking fd before maturity comes at a cost so it makes people think twice before spending.

However even I don't know why banks provide option to create fds for such short duration

 

[ltf4ever]

One possible reason can be to curb unnecessary expenditure since breaking fd before maturity comes at a cost so it makes people think twice before spending.

However even I don't know why banks provide option to create fds for such short duration

I could think of, from the top of my mind:
1) tax implications, if there is any tax saving on fd
2) for current account holders an option to earn some interest, as current account does not pay out interest.

 

[Wealth is my birth right!]

hdfc savings account interest rate is 3%. FD interest rate is also 3% for FDs booked upto 30 days.

I was wondering whether there was any particular advantage and situations in which people would make a 30 days or less FD.

i did many times just by the compulsion by RM at an evening when she misses the target haha
mostly i forget that after providing FD no to her....post 30days it will be credited to account.
Maybe that slab kept for helping their employees to meet target lol