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About this tool
Compare a reinvestment fixed deposit with a monthly or quarterly payout deposit, including the break-even reinvestment rate.
This comparator puts a cumulative fixed deposit, which leaves interest inside the deposit to compound quarterly at P x (1 + r/4)^(4n), beside a non-cumulative deposit that pays the same interest out monthly, quarterly, half-yearly or annually. It shows the payout you would actually receive, the total the compounding option earns instead, and — solved numerically — the reinvestment rate at which the payout route catches up. It is for savers choosing between an income deposit and a growth deposit at the same bank and rate.
Open Cumulative vs Non Cumulative FD Comparator on AltFTool — it loads instantly in your browser.
Enter the values you already know.
Fine-tune the options to match your scenario.
Read the result and use it in your planning or reporting.
Uses the discounted payout banks apply for periods shorter than a quarter, not a naive rate divided by twelve.
Bisects for the exact reinvestment rate at which the payout stream equals the compounded deposit.
Applies the section 194A TDS test and your slab rate to each option separately.
A cumulative deposit keeps the interest inside the deposit so it compounds and everything is paid at maturity. A non-cumulative deposit pays interest out at a chosen frequency and returns only the principal at maturity, so the total received is lower unless the payouts are reinvested.
Because banks accrue interest quarterly and discount anything paid before the quarter ends. The monthly payout is P x ((1 + r/4)^(1/3) − 1), so a ₹10 lakh deposit at 7.25% pays about ₹6,006 a month rather than the ₹6,042 that dividing by twelve suggests.
It depends on whether the interest is needed for spending. A non-cumulative deposit gives predictable monthly income; a cumulative deposit produces more money in total but nothing until maturity. If the income would simply sit in a savings account earning 3%, the cumulative option almost always ends ahead. This is general information, not personal financial advice.
No. Interest is taxable as it accrues each year even though it is not received, and banks deduct TDS on the interest credited each financial year once it crosses ₹50,000, or ₹1,00,000 for a resident senior citizen. Waiting until maturity to declare the whole amount can create a mismatch with your Form 26AS.
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