What sets cumulative and non-cumulative FDs apart?

With a cumulative FD, the interest is compounded, and after that, the principal and interest are paid at maturity; thus, the benefit of compounding is obtained. A non-cumulative FD, on the other hand, pays out interest regularly through periodic instalments on a monthly, quarterly, or annual basis, which makes it advantageous for those who require a constant income source.

Are FDs from Small Finance Banks worth the risk?

In general, it is safe because the RBI oversees Small Finance Banks. Furthermore, deposits of these banks are insured by the DICGC (Deposit Insurance and Credit Guarantee Corporation) for a sum of ₹5 Lakhs per depositor, thus both principal and interest are covered.

Is it possible to set up a fixed deposit through the internet without having a savings account in that bank?

The answer is yes; a lot of banks and NBFCs have now started offering Standalone FDs where KYC can be done digitally, and the deposit can be funded through UPI or Net Banking. However, possessing a savings account typically speeds up the process and makes the maturity payout more convenient.

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Fixed Deposit - Check Latest FD Interest Rates 2026

Explore the latest fixed deposit interest rates in India for 2026. Read our blog to compare bank FD rates, tenure-wise returns, and senior citizen benefits.

Anjali Singh

Assistant Manager

Published Date:Jan 7, 2026

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Anjali Singh

Assistant Manager

Hey there, I'm Anjali Singh. With over 6 years of experience in finance, I specialize in creating content on banking, loans, and financial planning. My goal is to simplify complex financial topics and help readers make informed decisions through my articles.

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