If you are looking for fixed deposits which offer higher interest rates than those offered by bank FDs and are also willing to take some risk, then fixed deposits offered by NBFCs may be a good option.
If you are looking for fixed deposits which offer higher interest rates than those offered by bank FDs and are also willing to take some risk, then fixed deposits offered by NBFCs (non banking financial companies) may be a good option. Mahindra Finance, the nation’s leading rural finance company, is also such an NBFC which offers FDs at higher rates.
According to the company, its fixed deposits have a rating of ‘FAAA’, which indicates a high level of safety. Additionally, investors get covered with a free accidental death insurance coverage of Rs 1 lakh for a year.
It may be noted that Mahindra Finance had recently revised interest rates on its fixed deposits. Interest rate for deposits up to 12 months had been hiked by 30 basis points to 8.00%, while those for 18 months had been increased by 35 basis points to 8.10%, and for deposits up to 24 months rates had been hiked by 10 basis points to 8.35%.
It is interesting to note that Mahindra Finance’s FD schemes are of two types – Dhanvruddhi (online) and Samruddhi (offline). Investors are eligible for 0.25% higher rates, if they choose the online mode of investment with a different tenure. It offers 0.10% additional interest rate for Senior Citizens for Dhanvruddhi Deposits. The company offers 0.25% additional interest rate for senior citizens for Samruddhi Fixed Deposits, and 0.35% additional interest rate for all Mahindra group company employees & employees’ relatives.
Depositors should also know that both the Dhanvruddhi (online) and Samruddhi (offline) schemes are available for cumulative and non-cumulative options. Cumulative schemes are those where the interest is calculated quarterly or half-yearly and is paid at the time of maturity, while in non-cumulative schemes, interest is paid on a monthly, quarterly, half-yearly or yearly basis as chosen by the depositor.
Here’s a look at all the fixed deposit schemes of Mahindra Finance:
Dhanvruddhi Cumulative/Non-Cumulative Scheme – Fixed Deposit Interest Rates Only for online investors through Mahindra Finance website:
Samruddhi Cumulative/Non Cumulative Schemes – Fixed Deposit Interest Rates Only through Physical applications:
# The interest rates are effective from 23rd August 2018