Cumulative bank deposit

[bestwriter]

Cumulative bank deposits normally mature in five years and the interest is compounded. The other advantage is that even when banks announce decrease in bank interest rates cumulative deposit interest rates stay put.

I have several such deposits. They are also called term deposits where the capital is exempt from tax.
What are your methods to increase your savings?

 

[nomad]

We call it fixed deposit bank account. Based on the current interest rate offered by banks here, money doubles in 8 years.

 

[bestwriter]

There are two types. One where interest gets credited to the savings account and one where the interest is added to the capital and that becomes the new capital each year and that is called cumulative deposit.

 

[Shavkat]

In my country, we call it a time deposit. I am not sure if it is the same thing. The client tends to ask the bank to keep their money in dollars to earn more interest while it is still in the bank.

 

[riberet19]

I have couple high interest savings accounts, I usually use neo banks for this, as these banks usually give better returns than traditional banks which do not offer anything substantial.

 

[Suba]

In fact, cumulative is an interest calculation that is calculated in total so that you will get fixed interest. Even though I have deposits only as reserve funds, not to earn large interest, in my country banks only give small interest on deposits, they don't even give interest on savings, so even though I have a bank account it's only for transactions.

 

[bestwriter]

I am aware some countries do not have any system where money kept in banks could earn interest. That money is only for spending or settling credit card dues.

 

[Clandestine]

We don't have this facility in my country. It would be a good financial coverage for people to take advantage of.

 

[eldavis]

I think over here this is called fixed deposit. I don't have a fixed deposit account with any bank for now.