What are the different payout options available on fixed deposits?

Fixed deposits enable multiple payment options for earning interest, depending on how frequently you receive your funds. Different financial institutions provide numerous options so you can find the best solution for your financial requirements and set returns for your specific objectives. Potential payout methods are categorised below:

• Cumulative Pay-out: Interest and principal are compounded and paid at maturity. This option is great for long-term savings, as compounding helps your money grow.
• Monthly Pay-out: Interest is credited to your account every month, which is ideal for those needing regular income, like retirees. Please note that monthly payout FDs do not benefit from compounding, so the total interest earned may be lower than cumulative FDs.
• Quarterly Pay-Out: Interest is paid every three months, offering a balance between regular income and slightly higher returns than monthly payouts. It suits those wanting periodic cash flow.
• Half-Yearly Pay-out: Interest is paid twice yearly, providing less frequent but larger payouts. This works for those who don’t need monthly funds but want regularity.
• Annual Pay-out: Interest is paid once a year, which is suitable for those planning yearly expenses. Due to longer interest accrual, it offers better returns than monthly or quarterly options.