What are the interest frequency options for Fixed Deposits?

When you invest in a Fixed Deposit (FD), banks and financial institutions offer different interest payment frequencies to cater to the needs of different investors. These options allow you to choose how often you'd like to receive your interest payouts. The main interest frequency options for FDs are:

1. Cumulative Option: The interest earned is compounded at regular intervals (such as quarterly or annually, depending on the institution) and added to the principal. The total amount-principal plus accrued interest-is paid out at maturity.
2. Non-Cumulative / Monthly / Quarterly Option: The interest is paid out as per chosen frequency - monthly, quarterly, half-yearly, annually, based on customer preference. Only the original principal amount gets renewed after maturity.
3. TDS Deducted: For FDs not in cumulative mode, the bank may deduct TDS on interest earned if it exceeds ₹40,000 in a year as per IT rules.

It is important to note that the available payout options, frequencies and applicable TDS rules can vary from one bank or financial institution to another. Customers should check the specific FD features of their bank before investing. The interest payout schedules offered on fixed deposits are subject to change over time as well.