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Showing posts from November, 2024

Types of Fixed Deposits: What You Need to Know About Cumulative, Non-Cumulative, and Flexi Options

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In previous blog we've explained the logic behind Fixed Deposit in a very detailed manner but what about it's types ?. So in this blog we will be explaining the types of FDR and rest assured everything will be very detailed and you won't have to look anywhere for the same purpose: TYPES OF FDR:- Cumulative:-   Cumulative word means something is being added. So in cumulative FDR , whatever interest is being paid on predecided frequency, is added up with principal. For ex. Say you went to a bank and want to do a FD with $1,00,000 and bank is giving interest on quarterly basis, that means every three months interest will be paid and if every three months intested paid is $1000. so after three months principal will become $1,00,000+$1000=$1001000. Now for the next quarter interest will be calculated on $1001000 rather than $1,00,000. So here the benifit is as principal is increasing with every inerest paid, final interest received is more than the non-cumulative FDR.    ...
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Types of Fixed Deposits: What You Need to Know About Cumulative, Non-Cumulative, and Flexi Options

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In previous blog we've explained the logic behind Fixed Deposit in a very detailed manner but what about it's types ?. So in this blog we will be explaining the types of FDR and rest assured everything will be very detailed and you won't have to look anywhere for the same purpose: TYPES OF FDR:- Cumulative:-   Cumulative word means something is being added. So in cumulative FDR , whatever interest is being paid on predecided frequency, is added up with principal. For ex. Say you went to a bank and want to do a FD with $1,00,000 and bank is giving interest on quarterly basis, that means every three months interest will be paid and if every three months intested paid is $1000. so after three months principal will become $1,00,000+$1000=$1001000. Now for the next quarter interest will be calculated on $1001000 rather than $1,00,000. So here the benifit is as principal is increasing with every inerest paid, final interest received is more than the non-cumulative FDR.    ...
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What is a Fixed Deposit? Complete Guide to FD Rates, Interest Calculation & Compounding

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If you are planning to save money and have some funds at your disposal. For sure, Fixed Deposit (FD) is a great option. FD not only keeps your money safe but also gives far better interest on your deposit amount. If you don't have any idea about it and want to know "What is Fixed Deposit?" and  learn everything about them like calculation, compounding etc, then stick with us. After reading this blog you will not have to look anywhere to get the hang of this term We’ll explain it simply, step-by-step! Think of it Like a "Money Locker" Imagine you're placing your money in a secure vault at the bank. You choose to leave it there for a set amount of time—whether it's one year, three years, or even five. While the bank holds onto your money, they offer you a reward in the form of interest. This interest is like a bonus added to your account once the agreed period comes to an end. By putting your money into a Fixed Deposit, you're essentially agreeing not ...
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