Mahindra Finance is a trusted name in the domain of finance with a AAA/STABLE rating by CRISIL. Booking a fixed deposit with them allows you to keep your funds secure while earning competitive interest rates.
Read on to know the reason and benefits of investing in Mahindra Finance Fixed Deposit.
Features and Benefits of Mahindra Finance Fixed Deposits
The fixed deposit comes with several attractive features and perks that make choosing it an excellent option. Here are some you should know:
Multiple Options
You can choose from two different types of deposits – Dhanvruddhi and Samruddhi. You can invest in either of these as per goals, whether for your retirement or to create an emergency fund.
You can also choose the cumulative or non-cumulative option available with both these deposits. This gives you more control over your investment and returns as you can decide based on your current finances and goals.
Flexible Investment Amount
Regardless of which Mahindra Finance Fixed Deposit scheme you choose, you need to invest a minimum of ₹5,000. So, you need not wait to save a substantial sum to start an FD.
Instead, you can start immediately and securely accumulate a sizeable corpus. There is no upper limit on the maximum amount, and you can invest up to ₹5 Crores or more, as per your goals.
Tenor Option
Mahindra Finance offers tenor options between 12 months to 60 months. So, you can easily invest for your short or medium-term goals. To get higher returns, consider investing for a longer tenor.
You can also choose from multiple payout options as per your needs. For instance, if you want a consistent income stream, you can get the interest at regular intervals. You can choose from the following payout options:
- Monthly
- Quarterly
- Half-yearly
- Yearly
If you do not want to receive interest periodically, you can choose the at-maturity payout option. The interest is compounded in this option, so you can secure comparatively higher returns.
Interest Rate
The Mahindra Finance Fixed Deposit rates go up to 8.10% p.a., depending on several factors. With a longer investment term, you get a higher interest rate for all schemes. If you are a senior citizen investor, you enjoy an additional 0.10% p.a. for Dhanvruddhi and 0.25% p.a. for Samruddhi deposits. Here are the rates under different schemes:
Dhanvruddhi Cumulative Scheme for Deposits up to ₹5 Crores
| Tenor | Interest Rate for Regular Citizens | Interest Rate for Senior Citizens |
| 15 | 7.75% p.a. | 7.85% p.a. |
| 30 | 7.90% p.a. | 8.00% p.a. |
| 42 | 8.05% p.a. | 8.15% p.a. |
Disclaimer: These interest rates are subject to change at the discretion of Mahindra Finance.
Samruddhi Cumulative Scheme for Deposits up to ₹5 Crores
| Tenor | Interest rate for Regular Citizens | Interest rate for Senior Citizens |
| 12 | 7.50% p.a. | 7.75% p.a. |
| 24 | 7.80% p.a. | 8.05% p.a. |
| 36 | 8.10% p.a. | 8.35% p.a. |
| 48 | 8.05% p.a. | 8.30% p.a. |
| 60 | 8.10% p.a. | 8.35% p.a. |
Disclaimer: These interest rates are subject to change at the discretion of Mahindra Finance.
Bulk Deposit for Deposits Above ₹5 Crores in Cumulative Scheme
| Tenor | Interest rate |
| 12 | 7.60% p.a. |
| 24 | 7.75% p.a. |
Disclaimer: These interest rates are subject to change at the discretion of Mahindra Finance.
Eligibility Criteria
The majority of entities can open an FD account with Mahindra Finance. Here is an overview of who can invest in this fixed deposit:
- Indian Residents
- Non-resident Indians
- Hindu Undivided Family (HUF)
- Association Societies
- Charitable Trust
- Clubs
- Companies
- Family Trust
- Foundation
- Partnership Firms
- Sole Proprietorship
- Trusts
Easy Application Process
You can easily invest in either of the FDs and start your investment instantly. Remember, you can only invest online if you choose the Dhanvruddhi scheme, but with Samruddhi, you can invest offline too. All you need to do is enter the basic details, submit the required paperwork, and transfer the deposit amount.
Renewal
If you renew your FD, you can earn more interest, and the process is quite easy with Mahindra Finance. The institution allows you to reinvest your principal and interest amount into a new FD after the maturity. You also get an additional 0.10% p.a. interest on the existing rate upon renewing the deposit.
Premature Withdrawal
If you invest in Mahindra Finance Fixed Deposit, you can access the funds in case of emergencies by withdrawing before the tenor ends. This gives you more liquidity, which enables you to easily and conveniently address your unplanned expenses. However, remember that you will have to pay a penalty of 2% if you make a premature withdrawal.
You can choose from flexible tenor options and high-value interest rates for a tailor-made FD option. Remember to use the monthly FD interest calculator to estimate your payout and maturity amount for the chosen terms. This will enable you to choose the right terms and maximise your returns.
