What is cumulative fd
Hi Kashish,
I’ve actually invested in a cumulative FDs, and it’s basically an FD where you invest a lump sum, and instead of getting the interest every month or quarter, the bank adds it back into your invested amount. That means you get interest on your earned interest, and it just keeps growing.
This works great if you’re not dependent on monthly income from the FD and are saving up for the future. Now, you know, “what is cumulative FD” and it’s completely different from non-cumulative FD.