When should a cumulative deposit be chosen?

Choosing a particular mode of payout for the deposit depends upon the individual needs of the investor. However in terms of overall conditions, the money accumulates in a cumulative deposit and the amount will be paid only at the time of maturity. This will be used when the investor does not have any need for the income that is generated from the deposit. This is also useful when the investor wants to earn a higher amount of interest at the end of a specified period, so the accumulation helps them achieve this objective.