Earn up to 9% p.a. on this FD scheme; Find out how

Mahindra Finance, a Non-Banking Financial Company (NBFC), allows its customers to invest their money in fixed deposits and earn comparatively higher interest rates. Their FD offers up to 9.00 per cent interest per annum (effective yield up to 10.01 per cent p.a.), and an additional 0.10 per cent interest rate for senior citizens. The State Bank of India (SBI), on the other hand, currently offers interest rate ranging between 6.25 and 7 per cent, on domestic term deposits below Rs 2 crore, and for senior citizens and SBI pensioners, an additional 0.50 per cent above the interest rate payable for all tenors.

Mahindra Finance currently offers 2 types of Fixed Deposit schemes – Dhanvruddhi and Samruddhi. The two types of Mahindra Finance fixed deposits are categorized under two sections:

1. Dhanvruddhi Scheme – Online scheme
2. Samruddhi Scheme – Offline scheme

Both the Dhanvruddhi and Samruddhi schemes are available under Cumulative as well as Non-Cumulative options. Cumulative schemes are those whose interests are calculated quarterly or half-yearly. The interest is paid out at the time of maturity. In the case of non-cumulative schemes, the interest is paid either on a monthly, quarterly, half-yearly or yearly basis, as chosen by the depositor at the time of opting for the scheme.

Samruddhi Scheme: This is the offline version of the Fixed Deposit. To invest in this scheme, people have to visit the branch and fill the physical form. One can also choose between cumulative or non-cumulative scheme. In the case of non-cumulative Samruddhi scheme, where interest is paid yearly ,the minimum investment amount is Rs 25,000. However, for the non-cumulative scheme, where the interest is paid monthly, the minimum investment amount is Rs 50,000.

Dhanvruddhi Scheme: This is the online version of the Fixed Deposit. Depositors can invest in this scheme only through the online mode, by visiting the company’s website. One can choose between cumulative or non-cumulative Dhanvruddhi scheme.

Here are the features of Dhanvruddhi (Online) Scheme:

• This scheme offers up to 9.00 per cent interest per annum, effective yield up to 10.01 per cent per annum.
• Additional 0.10 per cent interest rate for senior citizens
• Crisil rating ‘FAAA’, which indicates high safety
• Minimum investment amount in case of cumulative is set at Rs 5,000.
• The maximum investment amount is Rs 99 lakh
• If you want to deposit an additional amount, it can be done in multiples of Rs 1,000
• The minimum investment amount, in case of non-cumulative, where the interest is paid yearly, is set at Rs 50,000
• The minimum investment amount in the case of non-cumulative, wherein the interest is paid monthly, is set at Rs 1.5 lakh.
• Additionally, all Mahindra Group employees and their relatives are also eligible to get an additional interest rate of 0.35 per cent.
• Minors can also deposit money in these schemes
• Depositors also get a free Rs 1 lakh personal accident insurance cover

Dhanvruddhi Interest Rate