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 to 60 months. Remember, the maturity amount decreases if the interest payout frequency is higher.
Non-cumulative FD has more regular payments as compared to a Cumulative FD. These FDs are suitable for people who need a regular income from the interest payouts, such as pensioners.