City investing company liquidating
In cumulative deposits, the interest is accumulated with the deposit amount, which is eligible to earn compounding principle interest on monthly/quarterly/annually basis.Whether the account reaches the maturity or subject to premature withdrawal, the principal, as well as the accumulated interest amount, is paid to the customer at the end of the term.
Most of the banks offer fixed deposit accounts in India and the interest rates offered with these accounts depend on the tenure of deposit and other factors.
An FD account with a higher deposit amount will attract higher fd interest rates and likewise.
The individual can choose to deposit a certain amount of money for a minimum of one month and a maximum of five years.
Therefore, it always wise to choose an FD over an RD.
Those investing in a tax saver fixed deposit can claim exemption under Section 80C of the Income Tax Act.