The age-old favourite of the masses, our very own fixed deposit, is simple to understand. The reason for this is that it is not prone to the irregularity or the ups and downs of the market. The amount that you get is fixed. But to get the maximum benefits out of it, you must first figure out the reason for your investment.
There are two options while choosing Best Fixed Deposit: Cumulative and the Non-cumulative FD. The former gives you an inflated amount at the end of the tenure, and the latter gives you a regular income.
In other contexts, these two types of Fixed Deposits are all the same. Now which one is better, will depend on the need of an individual. For an elderly person seeking a source of regular income, the non-cumulative FD is a good option. He can make the deposits and get a sort of pension regularly. However, if you want an amount for higher studies, or for buying a house, or for marriage, in that case, cumulative FD is a better option as you need a significant amount at a time.
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