A lump-sum payment is an amount paid all at once, as different to an amount that is divvied up and paid in installments. A lump-sum payment is not the best choice for every beneficiary; for some, it may make more sense for the funds to be annuitized as sporadic payments It is a savings deposit method where the savings term is agreed upon by the customer and the bank, the principal is deposited in lump sum, and the principal and interest will be withdrawn in lump sum at maturity.