Should you choose Bajaj Finance Cumulative or Non-Cumulative Fixed Deposits?
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Should you choose Bajaj Finance Cumulative or Non-Cumulative Fixed Deposits ?

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Should you choose Bajaj Finance Cumulative or Non-Cumulative Fixed Deposits ?

Cumulative vs Non-Cumulative Fixed Deposits

  • Highlights

  • Two options with fixed deposit schemes

  • Interest paid at maturity with cumulative FD

  • Interest paid at intervals for non-cumulative FD

  • Choosing the best option as per financial goals

A fixed deposit scheme is a savings option that helps you earn fixed interest on your money. Based on the payout scheme that you select at the time of the investment, you receive returns at different intervals.
Why settle for a 4% interest rate in your savings account when you can get much higher returns? Fixed deposits offer higher returns when compared to the savings account. Here’s a look at why Bajaj Finance Fixed Deposits are the best investment options for you:

Payout Options

Fixed deposits have two schemes – cumulative and non-cumulative. In cumulative fixed deposits, the interest is compounded annually and is payable at the time of maturity along with the principal. In the non-cumulative fixed deposit scheme, the interest is paid out at different intervals – monthly, quarterly, half-yearly, or annually. Individuals who need periodically earnings, can opt for non-cumulative fixed deposit scheme. Usually, the interest rates for low tenor is less.

Additional Read: Where to invest for higher returns on your fixed deposit

Bajaj Finance Fixed Deposits has both schemes. Under the non-cumulative fixed deposit scheme, you get returns monthly, quarterly, half-yearly, or annually. The minimum deposit for Bajaj Finance FDs is Rs. 25,000. There is also no risk, becaue Bajaj Finance FDs are safe, and have been rated MAAA (Stable) and CRISIL’s FAAA/Stable rating.

Difference Between Cumulative and Non-Cumulative Fixed Deposits

For the same rate of interest, returns for cumulative scheme is higher than non-cumulative one. It is because the interest is added to the principal, for further compounding. Here’s a look at some of the differences between Cumulative and Non-Cumulative Fixed Deposits.
Cumulative vs Non-Cumulative FD - Infographic
Suppose the rate of interest is 10% and the sum you’ve invested is Rs. 1 lakh.

1. For annual compounding:


The returns for both cumulative and non-cumulative scheme is same. The maturity value is Rs. 1,10,000.

Cumulative & Non Cumulative Fixed Deposit Options | Which Bajaj Finance Fixed Deposit should you choose?

2. For quarterly compounding:

In the non-cumulative scheme, the maturity value would be Rs. 1,10,000. In the cumulative scheme, the maturity value would be Rs. 1,10,381.29, due to the cumulative effect at every quarter.
You should choose the scheme that best fits your financial goals.
If you need the finances after 1-5 years, then the cumulative scheme of FDs can be chosen. However, if you have monthly or quarterly expenses, such as school fees, rent, or bills, non-cumulative scheme is the best option.

You can utilise Bajaj Finance fixed deposit calculator to know your returns, for different tenor and payout options.

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