In India, fixed deposits (FDs) have long been a preferred choice for individuals seeking a secure and reliable investment. Among the various FD options, non-cumulative fixed deposits have gained significant popularity, especially among those looking for regular income. These FDs allow investors to receive periodic payouts, making them an excellent choice for retirees, homemakers, and anyone seeking a stable monthly income. This article explores the features, benefits, and reasons behind the growing appeal of non-cumulative FDs and how to compare FD interest rates effectively to maximise returns.
Understanding non-cumulative fixed deposits
A non-cumulative fixed deposit differs from a cumulative FD in that the interest is paid out periodically, such as monthly, quarterly, half-yearly, or annually, instead of being compounded and paid at maturity. This makes non-cumulative FDs a reliable source of regular income, as investors can access their interest earnings at fixed intervals.
Non-cumulative FDs are particularly suitable for individuals …
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