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What is Cumulative Fixed Deposit

What is cumulative fixed deposit

• In a cumulative fixed deposit, your interest is re-invested with the principal amount.
• The amount you receive at maturity includes your principal amount and the total interest accumulated.
• The tenor for this FD can range between 12 to 60 months.
• Cumulative fixed deposits are best suited for investors who don’t need a regular interest payout, but would want a higher return on their FDs.

Also Read: Difference between Cumulative and Non-cumulative fixed deposit

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