Mahindra Finance Fixed Deposit
After a brief hiatus Mahindra Finance again started accepting Fixed Deposits from public. This Mahindra Finance Fixed Deposit comes up with the CRISIL Rating of FAA which means that it comes with a high degree of safety. They have both cumulative and non-cumulative scheme for investing our funds with and can choose from various periods and thus interest rates according to our needs. The interest rate for the fixed deposit varies according to whether it is cumulative or non-cumulative and different period, obviously.
CUMULATIVE SCHEME:
Under the cumulative scheme, the minimum amount to invest is Rs. 10,000 and then in multiples of Rs. 1000. Under the cumulative scheme in Mahindra Finance FD, the minimum period in which you can invest is 12 months and the maximum is 60 months. The interest rate for 12 months is 8% p.a. while for 18 months it is 8.25%, 24 months 8.50%, 36 months and above months 9% p.a.
Effective Yield:
But the effective yield for the cumulative scheme will vary according to the period of investment due to the fact that the interest component is being reinvested again, except for the 12 months period. Thus the effective yield per annum for the 18 months would be 8.48% p.a., while for the 24 months it would be 8.86% p.a., 36 months 9.83%, 48 months 10.29%, and while for 60 months the effective yield is exactly 10.77% per annum and thus assuring higher returns if you opt for the cumulative scheme.
Amount Payable:
For example if you are investing Rs. 10,000 under the cumulative scheme of the Mahindra Finance Fixed Deposit for various periods and your yield accordingly would be Rs. 10,800, Rs. 11,272, Rs. 11,772, Rs. 12,950, Rs. 14,116, Rs. 15,386 for 12, 18, 24, 36. 48 and 60 months respectively.
NON-CUMULATIVE SCHEME:
It is a scheme in Mahindra Finance FD where you will start withdrawing the interest component rather than accumulating it along with the invested amount and getting it at the end. Here you can ask for the interest to be paid either half yearly or quarterly. This year Mahindra Finance has introduced the quarterly interest payment option while it was not available previously. The minimum amount for investment under non-cumulative scheme for half yearly interest is Rs. 25,000 while for the quarterly option the minimum investment is Rs. 50,000.
Interest Rates (Non-Cumulative):
The interest rate for Mahindra FD with the half yearly plan is 7.75% p.a. for 12 months, 8.25% for 24 months, while it is 8.75% for 36, 48 and 60 months. The interest will be paid on March 31st and September 30th of every year via ECS/NEFT/NECS. For the quarterly interest payment option it is 7.65% per annum for 12 months, 8.15% for 24 months, and 8.65% p.a. for 36, 48 and 60 months.
Additional Benefits:
While for all the above investment schemes with Mahindra Finance Fixed Deposit, the senior citizens, share holders, and/or employees will get an additional rate of interest of 0.25% per annum. The interest will paid directly to your bank on June 30, September 30, December 31, and March 31 via NECS/ECS/NEFT.
Procedure to Invest:
You can download the Fixed Deposit application directly at the Mahindra Finance website and fill it and directly mail it to them or can contact your financial advisor for the same. You should draw the cheque or draft in favour of MMFSL – Fixed Deposit. You can even renew your existing FD with Mahindra Finance at the existing interest rates by sending back the deposit receipts along with fresh application before the maturity of the Fixed Deposit that you hold with Mahindra Finance. Partial withdrawal of the FD is allowed after 3 months but with nil to lesser interest rates accordingly.
Conclusion:
If you are a fan of fixed deposits and fond of fixed income rather than trying out other better but risky choices like Mutual Funds, stocks, etc., then this private fixed deposit can be a better choice considering you are getting far better interest rates. But remember that the risks associated with such private fixed deposits are higher when compared with the bank FDs. So, think twice and invest.
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TO KNOW MY FIXED DEPOSIT & IT’S ACCURED INTEREST.