We have joint deposit schemes and they also want to earn
interest on their money. Interest is calculated quarterly
and added to the principal amount. Thus customers can earn
interest on their interest. We have designed this deposit
scheme to reach all people. You can open a cumulative deposit
account for Rs.1000/-. The maturity amount will be credited
to your bank account without any additional charges. In
other words, the interest earned is compounded on a
quarterly basis.
Lower returns than other investment: Investing in fixed deposits gives you guaranteed returns but lower returns than other financial instruments like shares.
Interest rates don't beat inflation: Interest rates offered by fixed deposits usually don't beat inflation, meaning you earn less than inflation.
