Financial Education
Question #143
What is the difference between a fixed deposit and a cumulative deposit?
In a fixed deposit scheme, the interest is payable at specified frequencies. The scheme will be convenient for persons, like pensioners, who require periodical interest payments. In a cumulative deposit scheme, the interest is payable at the time of maturity along with the principal. These schemes are suitable for persons who do not require periodical interest payments, and are looking for money multiplier schemes.
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