What is an accumulative certificate, and how does it differ from one with periodic payouts?

The difference is what happens to the return once it is calculated.

In an accumulative certificate, the return is not paid out during the term; it is added to the principal, the next return is calculated on the principal plus the returns accumulated so far, and you receive it all at the end.

With periodic payout (monthly, quarterly, yearly), the return is paid to you as it falls due, and the bank keeps calculating on the principal only. What you do with that money once you receive it is your decision and not part of the certificate's calculation.

A hypothetical example per 100 EGP at 20% a year for 3 years, with the same rate in both cases for illustration only: the accumulative calculation gives 20 in year 1, 24 in year 2 (on 120) and 28.8 in year 3 (on 144), i.e. 72.8 at maturity. Quarterly payout gives 5 EGP per payment on the 100 throughout the term.

• These figures are not a ranking: in reality each payout option has its own rate, and periodic payout gets money to you earlier. Choose by your need, and check the key-facts statement for the payout options and whether an accumulative option exists.