What is the difference between a non-cumulative deposit and a cumulative deposit?
In a 'non-cumulative scheme' the interest is payable at a particular frequency (monthly, quarterly, half-yearly or yearly). This scheme is convenient for pensioners who require a periodical interest payment.
In the ‘cumulative deposit scheme', the interest is payable at the time of maturity along with the principal. This scheme is suitable for people who do not require periodic interest payments and can allow their money to multiply.