Best fixed deposit rates in India: Mahindra Finance offers 9% on select FD; how to apply
Fixed Deposit (FD) rates are on the rise. This is the probably the best time to invest your hard-earned money in FDs as most of the banks have increased their FD rates recently.
Fixed Deposit (FD) rates are on the rise. This is the probably the best time to invest your hard-earned money in FDs as most of the banks have increased their FD rates recently. Interestingly, as compared to the large banks, some small and new banks and other financial institutions are offering an attractive return of over 8 per cent interest on FDs. Mahindra Finance is providing customers with an opportunity to earn up to 8.75 per cent interest, which can give an effective yield of 9.71 per cent per annum. One of FD plan offered by Mahindra Finance can even give an effective yield in double digits, of over 10.07%. But there are certain terms and conditions.
Mahindra Finance is offering four types of deposit plans: Dhanvruddhi Cumulative Scheme, Dhanvruddhi Non-Cumulative Scheme (both of these provide additional 0.10 per cent interest to senior citizens), Samruddhi Cumulative Schemes and Samruddhi Non-Cumulative Schemes (both of these provide an additional interest of 0.25 per cent senior citizens).
There is a difference between the interest rate on FD and the Yield on FD. While the rate of interest on FD is generally the return offered on the principal amount (based on compounded interest), the yield on FD includes compounded interest and other factors, including the tax benefit, till the end of the term.
For Mahindra Finance group employees the deal is even sweeter. It is offering to them an additional 0.35 per cent FD interest rate per annum. This effectively means that the employees of the company can get over 9 per cent interest rate on their investment.
Fixed Deposit plans offered by Mahindra Finance
|Dhanvruddhi Cumulative Scheme|
|Amount (Rs).||Payable(Rs.)||p.a**||Yield p.a*|
|Dhanvruddhi Non-Cumulative Scheme*|
*The above two Fixed Deposit interest rates can be availed only by online investors through Mahindra Finance website.
|Samruddhi Cumulative Schemes|
|Amount||(Months)||Payable (Rs.)||p.a.*/‡||Yield p.a.**|
|Samruddhi Non-Cumulative Schemes|
*Samruddhi Cumulative/Non-Cumulative Schemes - Fixed Deposit Interest Rates can be availed only through physical applications.
How to open Mahindra Smruddhi account:
Samruddhi Deposit accounts can be opened with physical applications available at Mahindra Finance Branches & with Authorised Agents
Watch this Zee Business video
(Data accessed on official Mahindra Finance website on 27 August 2018)