Non-Cumulative Fixed Deposit is a kind of FD where the interest is payable on a monthly, quarterly, and half-yearly or annual basis. One can choose the frequency of the interest payout for a Non-cumulative FD at the time of application, which may be monthly, quarterly, half-yearly or annually.
The tenor for a Non-cumulative FD can range between 12 and 60 months. Remember, the maturity amount decreases if the interest payout frequency is higher.
With non-cumulative FD, you can look for regular interest payouts, to meet your monthly expenses. These FDs are suitable for people who need a regular income from interest payouts, such as pensioners.
Also Read: Difference between Cumulative and Non-cumulative fixed deposit