Related Questions
Who can invest in the Fixed Deposits through Kuvera?
Will senior citizens get special rates for Fixed Deposits?
When will my interest amount be paid for Bajaj Finance Ltd. Fixed Deposit?
Can interest rate change for an existing Fixed Deposit?
What are the various modes through which I can make my payment for FDs on Kuvera?
What do cumulative & non-cumulative interest payment options mean in Fixed Deposits?
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Answer
In a ‘Cumulative’ fixed deposit, the interest is payable at the time of maturity along with the principal. The interest is compounded annually in this option.
In a 'Non-cumulative’ fixed deposit, the interest is payable on a monthly, quarterly, half-yearly, or yearly basis. This option is convenient if you require periodic payouts.
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