Mahindra Finance Fixed Deposit

Fixed Deposits are among the safest and most secure investment instruments you can choose. With a large number of banks and NBFCs offering competitive interest rates, you can grow your corpus easily. 

Among these financial institutions is Mahindra Finance, a leading NBFC in India. The Mahindra Finance Fixed Deposit has a rating of AAA/Stable by CRISIL. This makes it a stable, safe and secure option for wealth accumulation.

That’s not all. The Mahindra Finance Fixed Deposit also comes with competitive interest rates, which ensure that you earn substantial returns on your investment. The rates go up to 8.00% p.a. at present, putting you on the path to wealth creation.  

Keep reading to know more about the Mahindra Finance Fixed Deposit, its features, benefits, interest rates, eligibility and more.

Features of Mahindra Finance Fixed Deposit 

• Flexible Tenor: Fixed deposits by Mahindra Finance offer tenors ranging from 12 to 60 months, which make them ideal for short- and medium-term savings.

• Regular Payouts: A non-cumulative fixed deposit by Mahindra Finance offers multiple payout options. You can get monthly, quarterly, half-yearly or yearly interest earnings based on your needs.

• Simple Process: You can book a Mahindra Finance FD online or offline and enjoy a hassle-free process that only takes a few minutes. 

• Senior Citizen Benefit: Senior citizens get additional returns of 0.25% under the Samruddhi Fixed Deposits option by Mahindra Finance. 

• Special Interest Rates: Mahindra Group employees and their relatives also get an additional 0.35% interest rate on booking Samruddhi Fixed Deposits.

• Safe Savings Option: The Mahindra Finance Fixed Deposit (MMFSL) has also received the IND AAA/Stable’ rating from India Ratings. So, you can rest assured that your savings are safe and stable. 

In addition to the above, you also get access to the Mahindra Finance FD calculator. This tool can help you select the best investment terms by giving you an estimate of your returns. All you have to do is enter your investment amount, interest rate, and tenor. 

Why Invest in the Mahindra Finance Fixed Deposit

• Safe Savings Option

The fixed deposit is rated CRISIL AAA/Stable by leading credit rating agency CRISIL. It also has the highest safety indicated by IND AAA /Stable rating by India Ratings. This is an indicator that your investment corpus is parked in a safe and stable savings instrument. 

• Attractive Returns

This FD offers attractive interest rates of up to 8.00% p.a., which would help you maximise your savings. 

Additionally, it offers special rates for senior citizens and Mahindra group employees. For such depositors, the increase in interest rate of Mahindra Finance FD is 0.25% and 0.35%, respectively. 

• Guaranteed Returns

Since the interest rate on the Mahindra Finance Fixed Deposit is predetermined, you can rest assured that your earnings will remain unchanged even when the market fluctuates. This ensures that your investment is safe from market volatility. 

• Hassle-free Process

You can book a fixed deposit  online, which makes investing effortless. Additionally, you can opt for an auto-renewal option to simplify your saving process tremendously. 

• Regular Payouts

A non-cumulative Mahindra Finance fixed deposit gives you the option to get regular income. You can choose your preferred interest payout interval - monthly, quarterly or annually. This is especially beneficial if you are looking for a regular source of income. 

Types of Mahindra Finance FD Schemes

The Mahindra Finance Fixed Deposit can be categorised into two schemes – Samruddhi and Dhanvruddhi. Here are the features of both these Mahindra Finance FD schemes:

1. Dhanvruddhi Fixed Deposit scheme

• The Dhanvruddhi scheme is available only for online investors 

• Investment in the Dhanvruddhi FD scheme is capped at ₹1 Crore for both cumulative and non-cumulative deposits
• Mahindra Finance FD interest rates in this scheme goes up to 7.75% p.a.
• Senior citizen investors get an additional interest of 0.25% 
• Mahindra Group company employees or employees’ relatives are not eligible for an additional 0.35% interest for deposits made in the Dhanvruddhi scheme

2. Samruddhi Fixed Deposit scheme

• The Samruddhi FD scheme is available for both modes – online and offline
• Apart from cumulative and non-cumulative categories, investment in the Samruddhi scheme is further divided based on your investment amount
• You can invest more than ₹25 Crores in a Samruddhi cumulative deposit scheme
• Samruddhi non-cumulative FD scheme is available only for investments up to ₹24.999 Crores
• The interest rates for the Samruddhi scheme goes up to 7.70% p.a.
• Senior citizens and Mahindra Group company employees and employees’ relatives, including those who are retired, get an additional interest
• This interest benefit is 0.25% and 0.35% respectively for deposits up to ₹50 Lakhs

Taxation on the Mahindra Finance Fixed Deposit

As per Section 80C of the Income Tax Act, 1961, investment in a Mahindra Finance FD does not qualify for tax saving. The interest earned is also taxable. 

It is mandatory for issuers to deduct TDS if the annual interest earned in a fixed deposit is above the limit mentioned in the Income Tax Act. 

For non-senior citizen investors, interest earned beyond ₹40,000 is taxable, whereas, for senior citizen investors, the limit is ₹50,000. However, non-assesses (individuals, HUF, Trust) can avoid such deduction by furnishing a self-declaration via Form 15G/15H.

Eligibility Criteria & Documents Required

Eligibility Criteria for Booking a Mahindra Finance FD

The Mahindra Finance Fixed Deposit comes with a simple eligibility criterion wherein you need to be above 18 years to start your investment. Parents or legal guardians can book a Mahindra Finance FD on behalf of a minor. 

Here’s a list of people and organisations that are eligible for booking a Mahindra Finance FD: 

• Resident Individuals

• Non-Resident Indians

• Companies

• Sole Proprietorship

• HUF

• Partnership Firms

• Trusts and Foundations

• Family Trust

• Charitable Trust

• Club, Association, Society

Documents Required to Book a Fixed Deposit with Mahindra Finance 

   1. Documents Required for Individuals 

Here are the documents required to open a Mahindra Finance Fixed Deposit for resident individuals:

• Passport

• PAN card

• Driving licence

• Voter ID issued by the Election Commission of India

• Job card issued by NREGA (Duly signed by an officer of the State Government)

• The letter issued by the Unique Identification Authority of India (containing details of name, address and Aadhaar number) or any document as notified by the Central Government in consultation with the regulator

 2. Documents Required for Partnership Firms

Here are the documents that partnership firms require to open a Mahindra Finance FD:

• PAN card

• Address proof (bank statement, telephone bill)

• Partnership deed

• Resolution copy

• ID & address proof of all authorised signatories

• Photograph of the signatories

• Cancelled cheque leaf for bank account verification

  3. Documents Required for a Hindu Undivided Family

Here are the documents required by an HUF to open a Mahindra Finance FD: 

• HUF PAN card

• Photograph

• HUF/Kartha address proof & identity proof of Kartha

• Cancelled cheque leaf for bank account verification

  4. Documents Required for Joint Stock Companies

 Here are the documents required from joint stock companies to open a Mahindra Finance Fixed Deposit:

• PAN card

• Certificate of incorporation

• Address proof (bank statement, telephone bill)

• Authorised signatory list

• Memorandum of article & association & latest board resolution with specimen signatures

• Photograph of the signatories

• ID & address proof of authorised signatories

• Cancelled cheque leaf for bank account verification

How to Book a Mahindra Finance FD

It is crucial that your investment decisions are well thought out and analysed. Here’s how you can go about booking your Mahindra Finance FD.

• Compare Existing FD Rates

Take into account prevailing FD rates and choose an FD that works best for you. This will ensure that your savings and returns are maximised. 

For instance, Mahindra Finance FD rates go up to 7.70% p.a., with an even higher rate of return for senior citizens and Mahindra group employees. You can choose a rate of return that suits you depending on your finances and goals. 

• Choose Preferred Tenor 

The next important step is to determine your preferred tenor. This depends on your financial situation and priorities. Choosing a Mahindra Finance FD is a wise decision as it offers flexible tenors ranging from 12 to 60 months. 

• Choose Preferred Payout Frequency

If you’re looking for a regular source of income, a non-cumulative Mahindra Finance FD may be the best tool for you. Not only does it guarantee the safety of your capital, but it also provides you with reliable earnings. Simply choose a suitable payout frequency to proceed.

• Choose Mode of Deposit

When you are ready to book a Mahindra Finance FD, you can choose between multiple methods. You may choose to book a Mahindra Finance FD online through the Mahindra Finance app or website or by visiting your nearest Mahindra Finance branch. 

Alternatively, you may book a Mahindra Finance FD through the Bajaj Markets app or the website. This is both quick and convenient. 

Premature Withdrawal of Mahindra Finance FD

The Mahindra Finance Fixed Deposit comes with a premature withdrawal facility, wherein you can withdraw your investment amount before your investment tenor ends. However, premature withdrawal comes with certain terms and conditions as well as a penalty. 

 Keep the pointers mentioned below in mind:

• Premature withdrawal is not permitted within 3 months of starting the investment

• If you withdraw your FD between 3-6 months, only the investment amount will be repaid, and no interest will be earned

• In case you withdraw after 6 months, the interest rates may be up to 3% lower than the prevailing interest rates

• The process of premature withdrawal/ closure can take up to 6 days once all the documents are furnished

Interest Rate of Mahindra Finance Vs Top Banks

Mahindra Finance FD interest rates go up to 8.00% per annum, depending on the scheme and type of deposit you choose. Nonetheless, it is essential to know the FD interest rates for other issuers as it enables you to make an informed decision. 

Given below is a table that showcases the FD interest rates offered by some of the top FD issuers. 

Fixed deposits are a great way to earn substantial returns and grow your corpus without any risks, especially in this rising FD rate period. At Bajaj Markets, you can easily compare and select the best FD for you. 

With a simple and hassle-free investment process, you can secure your financial future in just a few clicks! 

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