How do you open a fixed deposit that is compounded monthly?
1 Replies
Aman Khanna
(Finance Advisior)
(196 Points)
Replied 05 April 2017
As per my understanding, you want to open a fixed deposit account where you can collect the interest on a monthly basis. That means, you want to go for a non-cumulative fixed deposit.
This type of fixed deposit is good if you want a regular income from your savings. But, a non-cumulative FD pays a lesser interest rate. So, you may gain a little lesser than a long-term investment scheme.Still this is better when you key focus is earning interest at regular interval.
A fixed deposit is a type of savings account where you earn a fixed interest and your principal amount will remain safe and secured for the entire tenure.
The rate of interest of a fixed deposit is set by the financial institutions and based on that your interest keeps on compounding at a regular interval and you can enjoy the benefit.
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