Plan your investment
What Our Plans Cover
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Interest paid at the chosen freque...
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Monthly
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Principal returned at maturity
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Nomination facility
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Loan or overdraft against the depo...
Who Can Consider This Plan?
- Indian resident individual, HUF, trust, firm or company
- NRIs, through NRE, NRO or FCNR deposits
- Minors, through a guardian
- PAN, required to avoid a higher rate of tax deduction at source
- Completed KYC with the institution
What May Not Be Covered?
- Compounding — interest paid out does not earn further interest
- Any tax exemption on the interest received
- The full rate on premature withdrawal
- Protection against inflation eroding the fixed income
Always check the policy wording before you commit.
Why Choose Wealth & Covers?
- Expert advice to choose the right plan
- Plans from leading investments companies
- Hassle-free process and documentation
- End-to-end support, including claim assistance
- Dedicated relationship manager
- Expert Guidance Personalised advice from experienced investments professionals.
- End-to-End Support From choosing the right plan to claim assistance, we are with you always.
- Claims Assistance Hassle-free claim support to ensure you get what you deserve.
- Transparent Process Clear information, easy documentation and a hassle-free experience.
Overview
A non-cumulative deposit pays interest out at a chosen frequency — monthly, quarterly, half-yearly or annually — instead of reinvesting it. The principal is returned at maturity.
Its purpose is income. For a retiree funding monthly expenses, or anyone needing a predictable receipt, the payout structure does a job that a cumulative deposit cannot. The trade is compounding: money paid out is money no longer earning inside the deposit.
Monthly payout is usually offered at a slightly lower effective rate than quarterly or annual, because the bank is paying earlier. Where the money is not needed monthly, taking quarterly and holding the difference produces a marginally better outcome.
Who should consider it
Retirees living on deposit income. Anyone needing a predictable periodic receipt. Savers who want to draw the interest and preserve the capital intact.
Benefits
- Predictable income at a frequency you choose
- The principal remains intact until maturity
- Suits retirees funding regular expenses
- Interest received can be reinvested elsewhere if not needed
- The same safety and DICGC cover as any bank deposit
- Senior citizen rate applies where eligible
What is included, and what is not
Read the right-hand column first. It is the one that tends to surprise people later.
Included
- Interest paid at the chosen frequency
- Monthly, quarterly, half-yearly or annual options
- Principal returned at maturity
- Nomination facility
- Loan or overdraft against the deposit
Not included
- Compounding — interest paid out does not earn further interest
- Any tax exemption on the interest received
- The full rate on premature withdrawal
- Protection against inflation eroding the fixed income
Terms vary between providers and between plans from the same provider. The offer document you receive is what governs — we will walk you through it before you commit.
How it works with us
- 1 We work out what the deposit is actually for An emergency fund, a dated obligation, or long-term savings. Only the first two are really jobs for a deposit.
- 2 Rates compared across banks, small finance banks and corporates The spread is wider than most savers realise, and so is the difference in safety. We show both sides.
- 3 Tenure and payout structured around your tax position Cumulative or non-cumulative changes when the tax falls due. For some savers that matters more than the rate.
- 4 Opened, with nomination and Form 15G/H handled The two administrative steps savers skip and later regret. We complete both at opening.
- 5 Maturity tracked, and reinvestment decided deliberately Auto-renewal at whatever rate happens to prevail is a decision by default. We flag maturities so it is a decision by choice.
Important considerations
The things a brochure tends to leave out. Read these before you decide.
- Take quarterly rather than monthly where you can. The effective rate is usually slightly better, because the bank pays later.
- A fixed payout loses purchasing power over a long tenure. On a ten-year deposit the monthly amount buys noticeably less by the end.
- If you do not actually need the income, a cumulative deposit compounds and produces more. Take payout because you need it, not by default.
- Interest received but not spent should be reinvested. Money sitting in a savings account undoes much of the point.
- Senior citizens should submit Form 15H where eligible, so tax is not deducted from income they are living on.
Documents required
- PAN card
- Identity proof — Aadhaar, passport or voter ID
- Address proof
- Recent passport-size photograph
- Existing bank account details, where opening with your own bank
- Form 15G or 15H, where applicable, to avoid tax deduction at source
- Nomination form
Frequently Asked Questions
Monthly or quarterly payout?
Quarterly, unless you genuinely need the money monthly. Banks typically offer a slightly lower effective rate on monthly payout because they are paying earlier, so quarterly produces a marginally better outcome for the same deposit.
How much less do I earn than a cumulative deposit?
Meaningfully over a long tenure, because interest paid out stops earning. If you do not need the income, cumulative is the better structure. Take payout because you need the money, not by default.
When is the interest taxed?
In the year you receive it, which is more straightforward than a cumulative deposit where tax accrues on interest you have not yet been paid. Tax is deducted at source above the threshold.
Will the income keep up with inflation?
No. The payout is fixed for the tenure, so its purchasing power falls each year. On a long deposit that erosion is substantial, which is why retirees are usually advised to hold some growth assets alongside deposit income.
Can I change the payout frequency later?
Generally not once the deposit is booked. The frequency is set at opening, so choose it against how you will actually use the money rather than changing your mind afterwards.
Want a shortlist instead of a catalogue?
Tell us the situation and an advisor comes back with two or three options that actually fit — and names what each one gives up.