Fixed Deposit: Fixed Deposit is also called term deposit. FD is one of the easiest ways to invest in the country. Fixed deposit is a famous scheme in which people get guaranteed returns.
Non-cumulative FD Scheme : Fixed Deposit is also called term deposit. FD is one of the easiest ways to invest in the country. Fixed deposit is a famous scheme in which people get guaranteed returns. Your money is not lost in this. If you are also looking for options for your expenses and investments, then you can invest in FD options that offer monthly, quarterly and half yearly interest.
There are two types of FD
There are two types of fixed deposits. The first is Cumulative FD and the second is Non-Cumulative FD in which investors can invest. In Cumulative FD, the maturity amount is obtained by adding the amount of principal and interest. In Non-Cumulative FD, you can decide whether your interest amount is received monthly, quarterly or half-yearly.
These are the benefits
Many banks like State Bank of India and ICICI Bank offer this type of Non-Cumulative FD scheme. Here let us tell you that the interest in this type of FD is less as compared to Cumulative. There is no benefit of compounding interest in this. The only advantage in this is that you keep getting liquid cash from time to time. Loan facility is also available on this. There is no limit to invest in this. You can invest as much money as you want in it.
Becomes another source of monthly income
Non-Cumulative FD scheme is best for those who do not have any other source of income. You do not get regular interest or income in Cumulative. You get all the money together on maturity. Money remains safe in Non-Cumulative FD. You can get interest every month, this can also become a big source of income for those who do not have any other source of income.
