Mahindra Finance Fixed Deposit Rates – Updated Guide & Returns

Key Takeaways
 

• Mahindra Finance FD offers secure savings with competitive interest rates.
   
• Senior citizens earn slightly higher returns than general investors
   
• Investors can choose between cumulative and non-cumulative options based on their income needs.

Mahindra Finance Fixed Deposit rates offer investors a secure way to grow their savings with competitive returns. The rates vary depending on the tenure and deposit type, with senior citizens earning slightly higher interest.

For example, if Raj deposits ₹1,00,000 in a Mahindra Finance FD for 30 months at 7% p.a., he will earn ₹18,750 as interest by maturity. Senior citizens will earn a bit more due to the additional rate benefit.

This blog explains the features, benefits, and current interest rates of Mahindra Finance FD to help you plan your investments effectively.

Mahindra Finance Bank FD Interest Rates 2025

In 2025, Mahindra Finance Fixed Deposits (FDs) offer attractive interest rates that help investors grow their savings securely while providing additional benefits for senior citizens and Mahindra Group employees.
 

Mahindra Finance FD offers a combination of safety, flexibility, and competitive interest rates, making it a reliable choice for regular investors and senior citizens alike.

Types of Mahindra Finance Fixed Deposit Schemes

Mahindra Finance FD offers secure investment options to help you grow your savings and achieve long-term financial goals. The schemes provide high interest rates, full safety of principal, and flexible tenures and interest payouts.

Cumulative FD
In this type, Mahindra Finance FD adds interest to the principal at a compounded rate. You receive the total amount, including interest, only at maturity.

Non-Cumulative FD
Here, interest is paid periodically without being added to the principal. This option is ideal for those seeking a regular income, especially senior citizens.

Mahindra Finance FD schemes give you the flexibility to choose between growth and regular income based on your financial needs.

Features and Benefits of Mahindra Finance FD

Mahindra Finance FD offers a secure and flexible way to grow your savings. It provides multiple advantages that suit different types of investors.
 

• Guaranteed Returns: Your funds remain safe, backed by credit ratings from agencies like India Ratings & Research.
   
• Higher Interest Rates: Earn up to 7% p.a., with senior citizens receiving an additional 0.25% p.a.
   
• Low Minimum Investment: Start investing with as little as ₹5,000.
   
• Flexibility: Choose cumulative or non-cumulative options, and enjoy regular interest payouts with premature withdrawal allowed as per RBI rules.
   
• Loan Facility: Borrow up to 75% of your FD amount after three months at reasonable interest rates.
   
• Tax Savings: Tax-saving FDs provide deductions up to ₹1,50,000 under Section 80C, with a minimum five-year deposit.

Mahindra Finance FD combines safety, high returns, and flexibility, making it an ideal choice for both short-term and long-term investment goals.

Comparison of Mahindra Finance FD Rates with Other Banks

Fixed deposits remain one of the safest ways to save and grow money. Different banks in India offer varied FD interest rates, so it is important to compare before investing. The following table shows how Mahindra Finance FD and ICICI Bank FD rates stand against other major banks:

From the comparison, Mahindra Finance FD offers competitive returns, particularly for senior citizens, making it a reliable option for safe and rewarding investments.

Eligibility Criteria and Required Documents for Mahindra Finance FD Interest Rates

Anyone can invest in a Mahindra Finance FD, but you must meet certain eligibility criteria and submit the relevant documents. Following these requirements ensures a smooth and secure investment process.

Eligibility

• Nationality: You must be an Indian resident or an NRI (Non-Resident Indian).
   
• Investor Category: You can open a Mahindra Finance FD account as an individual, company, partnership firm, trust or foundation, charitable trust, HUF, family trust, sole proprietorship, club association, or society.

Required Documents

• Proof of identity (PAN card, Aadhaar, Passport, etc.)
   
• Proof of address (Voter ID, Passport, Utility Bill, etc.)
   
• Additional documents may be required depending on the investor category.

Mahindra Finance FD welcomes a wide range of investors while ensuring security through simple eligibility criteria and proper documentation.

Bonus Tip: Visit the site and click on the particular card for detailed documents.

Tax Implications on Mahindra Finance FD

When you invest in a Mahindra Finance FD, you need to consider the tax on interest earned. As per current tax laws, if your FD interest exceeds ₹40,000 in a financial year, the bank deducts TDS (Tax Deducted at Source) automatically.

The TDS rate is 10% if you have a PAN card. Without a PAN card, the rate rises to 20%. Mahindra Finance FD credits the remaining interest to your account after deducting TDS, ensuring compliance with income tax rules.

Mahindra Finance FD offers high returns, but you should factor in TDS while planning your investments.

Mahindra Finance FD Premature Withdrawal and Closure Rules

Mahindra Finance FD locks your money for a fixed period, so withdrawals before maturity are generally not allowed, except in specific situations where you agree to pay a penalty. No penalty applies in the event of the death of the first holder.

To close your FD early, submit the original FDR (or a xerox copy for e-receipts) with a revenue stamp, signatures of all holders, a request letter stating the reason, and a personalised cheque leaf at the nearest office. The process takes 5–6 working days.

Penalty Rules:

• FDs cannot be pre-closed within 3 months.
   
• If pre-closed between 3–6 months, only the principal is returned; no interest is paid.
   
• If closed after 6 months but before maturity, interest is 2% lower than the applicable rate for the period completed.

Pre-closure penalties are calculated based on the tenure completed, not the original rate. Note that non-cumulative FDs cannot be pre-closed within 10 days of an interest cycle or between 20–31 March due to year-end activities.

Mahindra Finance FD allows early withdrawal under defined rules, helping you access funds while understanding the applicable penalties.

How to Invest in Mahindra Finance FD

Investing in a Mahindra Finance FD online is quick and easy. You can complete the entire process from the comfort of your home in just a few steps. By visiting this site, scroll down and you will see an option of “Apply Now” button under the section of How to apply.

Steps to Open a Mahindra Finance FD Online:
 

1. Fill in your name and date of birth (DOB).
    
2. Enter your contact details.
    
3. Select the FD scheme that suits your financial goals.
    
4. Verify your KYC (Know Your Customer) details.
    
5. Enter your bank account details.
    
6. Make the payment and successfully open your FD.

Mahindra Finance FD allows you to start investing securely online with minimal effort and in a few simple steps.

Conclusion

Mahindra Finance FD offers a secure and flexible way to grow your savings with attractive interest rates. With options for cumulative and non-cumulative deposits, easy online investment, and benefits for senior citizens, it suits both short-term and long-term financial goals. In short, Mahindra Finance FD provides safety, steady returns, and convenience for all types of investors.

FAQ’s

1. Who is eligible to open a Mahindra Finance FD?

Any individual, NRI, company, trust, HUF, sole proprietorship, or society can invest in Mahindra Finance FD.

2. What is the minimum deposit amount?

You can start investing with a minimum of ₹5,000.

3. Are there extra benefits for senior citizens?

Yes, senior citizens earn higher interest, with extra returns on Samruddhi and Dhanvruddhi Deposits.

4. Can I close my FD before maturity?

Premature withdrawal is allowed, but interest may be adjusted as per the completed tenure and bank policy.

5. Is online investment possible?

Yes, a Mahindra Finance FD can be opened online with a simple process after completing the KYC requirements.

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LoansJagat Team

‘Simplify Finance for Everyone.’ This is the common goal of our team, as we try to explain any topic with relatable examples. From personal to business finance, managing EMIs to becoming debt-free, we do extensive research on each and every parameter, so you don’t have to. Scroll up and have a look at what 15+ years of experience in the BFSI sector looks like.