8.38% Mahindra Finance FD Schemes 2020 – Should you invest?

8.38% Mahindra Finance FD Schemes 2020 – Should you invest?

 

Mahindra Finance FD Schemes 2020 Review


Mahindra Finance FD Scheme offers the highest interest rates up to 7.3% where one can get yield up to 8.38%. Banks are reducing interest rates in the last few quarters. Banks are currently offering 5% to 6.5% interest rates. Mahindra Finance FD rates in 2020 are far higher compared to Bank FDs. While there are several company FD schemes, one should invest in a trusted company for the safety of their investment. What are various FD schemes offered by Mahindra Finance?  What are the interest rates of Mahindra Finance FD Schemes in 2020? Should you invest in Mahindra Finance Fixed Deposits or avoid?

Also Read:  7.15% RBI floating rate saving bonds 2020 – How good are these bonds?

About Mahindra Finance

Mahindra & Mahindra Financial Services Limited (also known as Mahindra Finance) is a Rural NBFC headquartered in Mumbai. It is amongst the top tractor finance in India and offers a wide range of financial products to address varied customer requirements.

Features of Mahindra Finance FD Schemes

Mahindra Finance offers 4 FD scheme variants. 1) Dhanvruddhi cumulative scheme 2) Dhanvruddhi non-cumulative scheme 3) Samruddhi cumulative scheme 4) Samruddhi non-cumulative scheme

In the cumulative option, the interest would be paid on maturity. In non-cumulative option, interest would be paid quarterly, half-yearly and yearly based on the option chosen.

Mahindra Finance FD Rating is “FAAA”, which indicates the highest degree of safety for the payment of interest and repayment of capital.

Interest rates are between 6.2% to 7.3%. The yields are up to 8.38%.

Senior Citizens would get up to 0.25% higher interest rates for specific FDs.

Mahindra Finance group employees and their relatives would get 0.35% higher interest rates.

What are various Mahindra Finance Fixed Deposit schemes offered by them in 2020?

I) Dhanvruddhi Cumulative Scheme

Here are the details of this FD scheme.

1) The interest rates are revised now in 2020.

2) This is cumulative interest payment scheme, means, interest would be paid on maturity.

3) The minimum deposit is Rs 5,000 and in multiples of Rs 1,000 thereof.

4) It offers 15 months to 40 months of tenure FDs.

5) Interest rates are up to 7.3% per annum. Highest Yield is 7.96%.

6) One can invest up to Rs 1 Crore in this FD scheme.

7) You can open this FD scheme online on Mahindra Finance website. Don’t get into the trap of any broker website or any other website offering this FD online.

Here are the Mahindra Finance FD Rates 2020 for this Dhanvruddhi Cumulative Scheme.

Mahindra Finance FD Rates 2020 - Dhanvruddhi cumulative scheme

II) Dhanvruddhi Non cumulative Scheme

Here are the details of this FD scheme.

1) The interest rates are revised now in 2020.

2) This is a non-cumulative FD scheme, i.e. interest would be paid either monthly or yearly depending on the scheme you choose.

3) The minimum deposit is Rs 5,000 and in multiples of Rs 1,000 thereof.

4) It offers 15 months to 40 months of tenure FD.

5) Interest rates are up to 7.3% per annum.

6) One can invest up to Rs 1 Crore in this FD scheme.

7) You can open this FD scheme online

Here are the interest details of Mahindra Finance Dhanvruddhi non-cumulative FD scheme.

Mahindra Finance FD Rates 2020 - Dhanvruddhi non-cumulative scheme

III) Samruddhi Cumulative FD Scheme

Here are the details of this FD scheme.

1) The interest rates are revised now in 2020.

2) This is cumulative interest payment scheme means, interest would be paid on maturity.

3) The minimum deposit is Rs 5,000 and in multiples of Rs 1,000 thereof.

4) It offers 12 months to 60 months of tenure FD.

5) Interest rates are up to 7.25% per annum. Highest Yield is 8.38%.

6) One can invest up to Rs 1 Crore in this FD scheme.

7) You can subscribe to this FD scheme offline/physical application process only.

Here are the Mahindra Finance FD Rates from 2020 for this Samruddhi Cumulative FD Scheme.

Mahindra Finance FD Rates 2020 - Samruddhi cumulative scheme

IV) Samruddhi Non-cumulative FD Scheme

Here are the details of the scheme.

1) The interest rates are revised now in 2020.

2) This is a non-cumulative FD scheme, i.e. interest would be paid either quarterly or half-yearly depending on the scheme you choose.

3) The minimum deposit is Rs 25,000 for half-yearly interest payout FD scheme and Rs 50,000 for quarterly interest payout FD scheme.

4) It offers 12 months to 60 months of tenure FD.

5) Interest rates are up to 7.15% per annum.

6) One can invest up to Rs 1 Crore in this FD scheme.

7) You can subscribe to this FD scheme offline/physical application process only.

Here are the Mahindra Finance FD Rates 2020 for this scheme.

Mahindra Finance FD Rates 2020 - Samruddhi non cumulative scheme

Reasons to invest in this FD Scheme

Here are positive things about this FD scheme

1) Mahindra is a trusted brand. Investors should invest in the trusted brand which would be relatively safer compared to regular corporate companies.

2) These FD schemes offer high-interest rates up to 7.3% and the yield up to 8.38%.

3) Two of the FD schemes can be invested online, hence it is a relatively easier process compared to the manual process.

You may like: Is it safe to invest in TPPFC FD Scheme in 2020 that offers up to 10.9% yield?

Reasons NOT to invest in this FD Scheme

Here are a few negative / risk factors.

1) Company FD schemes do not offer any security. In case any such company gets windup due to various reasons, FD investors would get preference like any other creditor of the company for the repayment of the FD investment.

2) Premature withdrawals terms and conditions make such FD unattractive.

3) While it is a trusted brand, in future there could be changes in credit ratings from credit rating agencies and such FD can turn to be riskier. There could be delays in repayment of capital/interest due to this.

How to Open Mahindra Finance Fixed Deposit Scheme Online?

Here the step-by-step process of opening the Mahindra Finance Fixed Deposit Scheme online.

1) You can visit this link to open FD scheme online.

2) Select whether you are a new investor or an existing investor. If the existing investor, enter a login ID and password and skip to point no. 4

3) You need to enter basic details like name, date of birth, mobile number, email address and get the OTP

4) You can make the payment + Upload KYC and additional details (if required)

If you wish to open through offline, you can check Mahindra Finance Fixed Deposit forms here.

What documents are required to open the Mahindra Finance FD Scheme?

Any of these documents can be used for KYC.

1) Passport

2) The driving license

3) The Permanent Account Number (PAN) Card,

4) The Voter’s Identity Card issued by the Election Commission of India,

5) The Job card issued by NREGA duly signed by an officer of the State Government,

6) The letter issued by the Unique Identification Authority of India containing details of name, address and Aadhaar number or any document as notified by the Central Government in consultation with the regulator.

Some of the FAQs about these FD Schemes

1) How can I calculate the interest amount?

Mahindra Finance Fixed Deposit calculator provided in the above interest rate table has the complete details. Based on the option and tenure chosen, the interest rate would differ.

2) What is the Mahindra Finance Fixed Deposit Rating?

If you are thinking “is Mahindra Finance FD safe in 2020”, you need to check the FD credit rating that can talk about company fundamentals. These FD Schemes are rated by CRISIL as FAAA which indicates a high level of safety for interest payment and repayment of capital.

3) How the FD interest is taxed?

Mahindra Finance would deduct TDS on interest exceeding Rs 5,000 per annum. However, one needs to calculate total interest received and pay income tax based on the income tax slab applicable to them when they receive the interest rates.

4) Are there premature withdrawals for this FD?

One can take a premature withdrawal only after 3 months from the date of deposit or the renewal of deposit. However, withdrawals are not allowed during quarter closures or year closures on specific dates due to accounting closures.

5) When the interest payment would be done for non-cumulative deposits?

In case of non-cumulative deposits, interest would be paid on the last day of the month or quarter or half-year or year based on the scheme and option chosen.

6) Can we submit Form-15G or Form-15H?

Yes. Individuals can submit a Form 15G or 15H to the company to not to deduct TDS on their FD interest.

7) In an emergency, can I get a loan against my FD?

Yes. One can request for the loan on this FD which would be up to 75% of the FD amount. The interest rate would be 2% higher than the FD interest rate paid to investors.

8) Can NRI’s invest in this FD Scheme?

Yes. NRI’s can invest in this FD scheme on non-repatriation basis.

9) What are the Mahindra Finance FD customer care details so that I can reach out for queries?

You can reach any of the following details for queries or complaints.

i) You can contact them at 022-66423966 or 1800 266 9266, or reach their email IDs pawar.sunita@mahindra.com, mfinfd@mahindra.com

ii) You can reach at their address here:

Fixed Deposit Processing Centre; Mahindra & Mahindra Financial Services Ltd. New no. 86, Old no. 827, Second floor, Dhun Building, P.B. No. 2430, Anna Salai, Chennai – 600 002, Tel no.: 044-28411061/044-28411016

Also Read: Shriram Transport Finance FD offers 10% yield – Are there any risks?

Should you invest in Mahindra Finance FD Scheme in 2020?

Mahindra Finance is a trusted brand. Its FDs have a good credit rating from Crisil. It offers high-interest rates up to 7.3% and yield up to 8.38%. Like I indicated in the RISKS section, FD’s does not offer any security. Company FD schemes are always riskier. If you are a high-risk investor and willing to consider these risks indicated above, you can invest in these FD Schemes. Otherwise, you can stay away from such schemes.

Source link

Leave a Reply