A cumulative FD pays interest at maturity (reinvested each quarter — the principal grows). A non-cumulative FD pays interest out at the frequency you choose (monthly / quarterly / half-yearly / annually) — your principal stays flat. Same rate, different cash-flow timing.
Cumulative
Maturity value
₹0
Total interest₹0
Effective yield0%
Cash flow during tenure₹0
Non-cumulative
Periodic payout
₹0
Total payouts₹0
Principal returned at end₹0
Total (payouts + principal)₹0
If reinvested → end value₹0
Which one to pick
Cumulative: Use when you don't need the cash flow and just want the highest maturity. Power of compounding works in your favour.
Non-cumulative: Use when you need regular income (retirees, dependents). At equivalent rates you give up the compounding edge.
The same bank usually offers both. Some banks advertise a slightly different headline rate for non-cumulative — check before picking.