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Types of Fixed Deposits: Cumulative and Non-Cumulative Fixed Deposits

SEBI found that more than 95% of Indian households preferred investing in fixed deposits (FDs) back in 2017. Few reasons behind the popularity of FDs are their high rate of interest, variable tenors, and availability from the majority of financial institutions.

There are two types of fixed deposit: cumulative and non-cumulative, offering different interest pay-out frequencies.

Cumulative Fixed Deposits

Cumulative FDs provide returns after maturity. Meaning, you receive your investment along with interest after the completion of its tenor, which can range from 12 to 60 months.

You can invest in a cumulative fixed deposit if you have long-term plans and a higher rate of interest.

When to opt for a Cumulative FD?

Cumulative FDs are exceptional when you seek to expand your savings. These can also be helpful if you have a big-ticket expense lined up. For example, invest your savings for 5 years if you are planning a wedding at that time.

Non-Cumulative Fixed Deposits

Another type of FD is a non-cumulative fixed deposit which provides interest returns on a monthly, quarterly, half-yearly, and annual basis. The principal amount remains invested throughout the tenor, and you only receive the interest depending on the chosen frequency.

The interest rate on non-cumulative FDs depends on the interest payout frequency. Annual pay-outs will provide a higher rate of interest than monthly ones.

When to opt for a Non-Cumulative FD?

Non-cumulative fixed deposits are superb if you want regular income. These FDs can help you to manage your recurring short-term expenses and monthly obligations.

Benefits of Cumulative and Non-Cumulative FDs

Lucrative Rates of Interest

Bajaj Finance offers Fixed Deposits with the rate of interests that can go up to 8.75%. Senior citizens also receive an additional 0.35% interest. You can also opt for a special 15-month fixed deposit that offers 0.25% more interest.

Guaranteed and Assured Returns

Returns on fixed deposits are guaranteed and assured as these are not market–linked, unlike mutual funds.

Comes with Stable Ratings

Both these types of fixed deposit hold FAAA rating from CRISIL and MAAA rating from ICRA guaranteeing their safety and stability.

Income Tax Benefits

Investing in tax-saver fixed deposits with a lock-in period of 5 years can help you avail tax benefits. You can claim tax benefits of up to Rs. 1.5 Lakh in a year under Section 80C of the Income Tax Act.

Offers Flexibility

Some financial institutions even offer the option to withdraw funds from your fixed deposits anytime against a minimal penalty charge.

Loans Against Fixed Deposits

You can avail Loans Against Fixed Deposit from Bajaj Finserv. While their cumulative FDs offer up to 75% of the sum available as loan amount, non-cumulative FDs provide up to 60%. You also don’t have to go through a lengthy documentation process or pay charges when foreclosing or part pre-paying the loan.

Make sure to calculate your returns before you invest in any of these types of fixed deposit. An FD interest calculator can help you out precisely to do so.



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Yes, when one wants to buy a property one cannot buy it full on cash. We are not talking about well-settled rich families instead we are talking about the middlemen who have no money in hand to buy the house on cash payment. Therefore, they usually opt for property loans to build their dream house for their family and yes these loans are helping people to get money easily at a good interest rate. But what if you have bad credit scores then you know that none of the banks will provide you with the loans because of your negative credit scores. But now the situation is different banks are providing bad credit loans for the people who have bad credit scores but are able to pay the instalments on time.

Now, do you want to know more about this that how can you get the property loans after having bad credit scores? Then yes this information may help you a lot.

How to get bad credit loans?

You can get the loan by payday lenders but you have to pay a certain amount to get that loan. Yes, you have to pay more than a normal loan taker. They provide you loans even after you have bad credit scores. Yes, another way before purchasing property take your credit scores little up so that you have no need to pay a huge amount for taking a loan.

Benefits of bad credit loans:

• Approval rate will increase - While applying for normal loan with good credit scores chances of application getting rejected are higher by the bank even for a small mistake or less of document but in case of bad credit loans as you are paying the huge amount to the bank there are 80% to 90% of chances that your application will get selected.

• You can get a huge amount of money - In a normal loan you can take a limited amount of money but in case of bad credit loans as you are paying more for your loan, therefore, the bank will be ready to give you more amount of money and this is because more the amount of money more will be the interest rate and more it will benefit to the bank.

• It will help to increase your credit scores- Yes, the most important thing of this loan is that if you pay all of your instalment on time then it will definitely help you to bring up your credit scores to a good rate which will eventually help you in future for getting any other loan.

Disadvantages of bad credit loans:

• Firstly, when you take bad credit loans to buy a property it may give you many advantages but there are several disadvantages of it as if you are not been able to pay the instalments on time then it will make your credit scores worse.

• Secondly, you have to pay a huge amount of interest for taking that loan which could be a burden for a middle-class family member.

• When you are taking bad credit loans a bank attaches a lot of terms and conditions with the application which can trap the person and which can financially harm the person a lot.

Hence, bad credit loans are good for buying property loans in case if your credit scores are not good but you have to take some precautions and you have to follow the terms and conditions of the bank properly before opting for any loan.

We hope you will get the best loan offer as per your choice!!

HUDA housing scheme is a project undertaken by the Haryana Urban Development Authority aimed at providing affordable housing to the residents of the state. It introduced the concept of Group Housing in the various Urban Estates scattered across the state. HUDA has allotted approximately 800 acres of land to various registered housing societies and organizations.

HUDA Haryana plans to provide residential plots to different income groups in cities and urban areas like Ambala, Dadri, Faridabad, Hisar, Jind, Gurgaon, Kaithal, Karnal, Rewari, Rohtak, etc. Its reserve prices will be fixed according to collector rates, or at 80% of the current market prices (whichever is higher.)

HUDA initiative will help the hundreds of residents living in the industry-rich areas of Haryana to afford their private residential plot. You can avail a home loan to meet the finances required for the expenses without straining your budget.

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How to Apply for Huda Scheme?

You can apply for this housing scheme as an individual or via housing societies or welfare housing organizations. You will have to sign-up at the HUDA procurement portal to participate in an e-auction. Let’s take a look at the step-by-step process to apply for housing under HUDA.

1. Log-in using your ID and password and navigate to the main portal.

2. Select the ‘Sign-Up’ button to navigate to the contractor/bidder/supplier signup form.

3. Fill in the necessary information correctly and submit the form. Keep the login details with you as it will be required to participate in the e-auction.

4. Select the client as Haryana Urban Development Authority while logging in for bidding.

5. You will see the dashboard which will hold a list of current events and properties awarded. Current events will carry the details of live auctions while the awarded section will detail the bids submitted and won by the buyers.

HUDA affordable housing can significantly reduce the number of funds you will have to spend to purchase a house in major areas of the state. A smaller amount is one of the crucial factors that impact your home loan interest rate.

You can also opt for an advance from a financial organization that offers benefits under Pradhan Mantri Awas Yojna. Leading NBFCs such as Bajaj Finserv offers assistance on these schemes which can reduce your home loan rates to only 6.93%, and help you save up to Rs. 2.67 Lakh during the loan tenor.

Eligibility

Eligibility criteria to apply for affordable housing under HUDA Haryana include –

Domicile – Applicants who belong to Haryana are only eligible to apply for HUDA Plot Scheme 2019.

Income – You can apply for the HUDA scheme only if you belong to the EWS (Economically Weaker Section). Your family’s (including the husband, wife and child/children) income should not exceed more than Rs. 3,00,000.

Previous ownership – An applicant should not own any other house or residential plot in his or her name in the state of Haryana.

Group D employees of the Haryana Government are eligible to apply for this scheme.

Furthermore, there are some guidelines you have to follow when you apply for a HUDA housing scheme.

     1. You can become a member of a maximum of 5 co-operative societies and retain the membership of only one society after an auction.

     2. Every applicant is allowed to own a maximum of one flat in a housing society.

     3. You cannot apply for a Co-operative affiliation if your spouse or dependent children own a house, flat, or residential plot in the same urban estate.

HUDA is a great initiative to help the Economically Weaker Sections of the society acquire suitable residential accommodation in Haryana. Purchase a home with a low down payment via HUDA and secure the future of your family in the state Haryana for years to come.

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