Mahindra Finance Fixed Deposit

Mahindra and Mahindra Finance Services Limited is a non-banking financial company that offers loans, insurance and investment products. One of its investment products is fixed deposits. CRISIL rated their FDs FAAA, which indicates Mahindra Finance FDs are of highest safety. Also, their FD interest rates match all leading bank FD rates in the country. They offer the following two FD schemes, namely, Samruddhi scheme Cumulative FDs and Samruddhi scheme Non-Cumulative FDs.

Mahindra Finance FD Rates 2024

Mahindra Finance fixed deposit rates depend on the type of scheme chosen. For cumulative FDs, the interest rate varies between 7.5% and 8.1% for a tenure of 12 months to 60 months. Also, for senior citizens, they offer an additional interest rate of 0.25%. Furthermore, in the non-cumulative scheme, the interest rates vary with quarterly and half-yearly interest payouts. Also, The interest gets directly credited to the bank account via ECS.

Check out the latest FD Rates.

Types of Fixed Deposit Schemes offered by Mahindra Finance

Following are the types of Mahindra Finance fixed deposit schemes:

• Samruddhi Cumulative Deposits
• Samruddhi Non-Cumulative Deposits

Samruddhi Cumulative Scheme

The cumulative scheme accepts deposits up to INR 1 crore. Under this deposit scheme, the interest is calculated quarterly or half yearly and paid at the time of maturity. Also, one can open the fixed deposit scheme easily through Mahindra Finance website. Following are the features of the scheme:

• Minimum Deposit Amount: INR 5,000
• Maximum Deposit Amount: INR 1 crore
• Minimum Deposit Tenure: 12 months
• Maximum Deposit Tenure: 60 months
• Frequency of interest payouts: One time, at the end of the year
• Tax Deduction: Tax is deducted after compounding the interest
• Eligibility: Resident Individuals, Companies, Non-Resident Indians (NRI), Partnership Firms, Trusts and Foundations, Charitable Trust, HUF, Family Trust, Sole Proprietorship, Club, Association, and Society.

Samruddhi Non-Cumulative Scheme

The non-cumulative scheme also accepts deposits up to INR 1 crore. Under this deposit scheme, the interest is paid monthly, quarterly, half yearly or yearly as per the investors choice. Also, one can open the non-cumulative fixed deposit scheme easily by visiting the Mahindra Finance website. Following are the features of the scheme:

• Minimum Deposit Amount: INR 25,000 (for half yearly interest payout option); INR 50,000 (for quarterly interest payout option)
• Maximum Deposit Amount: INR 1 crore
• Minimum Deposit Tenure: 12 months
• Maximum Deposit Tenure: 60 months
• Frequency of interest payouts: Monthly/ Quarterly/ Half yearly/ Yearly
• Tax Deduction: Tax is deducted after compounding the interest
• Eligibility: Resident Individuals, Companies, Non-Resident Indians (NRI), Partnership Firms, Trusts and Foundations, Charitable Trust, HUF, Family Trust, Sole Proprietorship, Club, Association, and Society.

Key Features of Mahindra Finance Fixed Deposit

Mahindra Finance Fixed Deposit accounts offer investors safe and high interest rates. Mahindra Finance FD rating by CRISIL is FAAA, also this indicates a high level of safety. Following are the key features of Mahindra Finance fixed deposit account:

Tenure

The fixed deposit tenure ranges between 1 year to 5 years.

Minimum and Maximum Deposit Amount

The minimum amount that one requires to open an FD account with Mahindra Finance is INR 5,000 for the cumulative scheme. Also, for the non-cumulative scheme with half yearly and quarterly interest, the minimum investment is INR 25,000 and INR 50,000 respectively.

Mahindra Finance Fixed Deposit Rates

Mahindra Finance FD offers interest rates in the range of 7.5% and 8.1% p.a.

Preferential Interest Rates

Mahindra Finance offers preferential interest rates to its senior citizen depositors. It offers an additional 0.25% for senior citizen depositors. Also, Mahindra group employees and their relatives get an additional interest rate of 0.35%.

Eligibility

Following are eligible to open a fixed deposit account with Mahindra Finance:

• Resident Individuals and Non-Resident Indians (NRI)
• Sole proprietorship
• Partnership firms
• Companies
• Trusts and foundations including charitable trust
• HUF and family trust
• Club, association, and society

Documents Required

Following documents required to open an FD account with Mahindra are:

• PAN card
• ID proof (Aadhar card, driving license, passport, voter ID, Job card by NREGA)
• Address Proof (Aadhar card, bank statement, telephone bill)
• Certificate of incorporation in case of companies, partnership deed in case of partnership firms
• Any other documents as required by Companies, partnership firms, clubs, trusts, societies, HUFs, NRIs etc.

Tax and TDS

Investment in Mahindra and Mahindra Finance Services Limited FDs do not qualify for tax saving under Section 80C of the Income Tax Act, 1961. Also, the interest income on the FDs is taxable as per the respective tax slabs of the individual. Furthermore, there is a TDS of 10% cut on interest income above INR 40,000 for regular citizens and INR 50,000 for senior citizens. If PAN is provided, the TDS rate is 10%, else it is 20%. To know whether the interest income is above or below the TDS threshold limit, one can use multiple FD calculators that are available online. One can also use the Income Tax Calculator to estimate their tax liability. Scripbox’s Income Tax Calculator helps in estimating the tax liability for free.

Premature Withdrawal

Mahindra Finance allows premature withdrawal of FDs only after 3 months from the date of deposit. However, there are certain rules for premature withdrawals. These are also subject to rules of the Reserve Bank of India (RBI).

For non-cumulative quarterly interest, one cannot withdraw from 20th until the last date of June, September, December and March, owing to quarterly interest payments.

For non-cumulative, half-yearly interest, one cannot withdraw from 20th until the last date of September and March, owing to half yearly interest payments.

Nomination Facility

Depositors can nominate beneficiaries for their Mahindra Finance FDs.

Auto-Renewal

Depositors have to provide the renewal application form 15 days prior to the maturity date. Deposit renewal can be either with the principal amount or the entire maturity amount.

Convenience

Depositors can open and manage their Mahindra Finance FD investments online at their convenience.

Loan against FD

Mahindra Finance allows investors to take a loan against their fixed deposits. Also, they can get up to 75% of the deposit as loan. Furthermore, it helps the depositors in meeting their liquidity requirements without having to break the deposit. The fixed deposit receipts will be considered a lien against the loan. However, NRIs and minors cannot take a loan against their FDs. Also, the rate of interest on the loan is 2% above the FD interest rate.

PAN Card

A PAN card isn’t mandatory to open Mahindra Finance FD. However, there are a few implications for the same.

• As per the regulations of section 206AA, TDS will be cut at 20% instead of the regular 10%
• The bank will not issue any TDS certificate.
• Form 15G/H and all other exemption certificates, will be invalid.

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