What is a Cumulative Deposit Bank Account?

In Reinvestment deposits, interest is calculated quarterly or half yearly and added to the principal amount. i.e. Interest is compounded at regular intervals. In Cumulative deposit scheme, interest is payable at the time of maturity along with the principal. This scheme is suitable for persons who do not require periodical interest payment and this can be thought of as a money multiplier scheme. It is good choice for long term planning with guaranteed returns.