Cumulative deposit of 3 years at a yield of 11.34 per cent

The Mahindra Finance Cumulative Fixed deposits offer an interest rate of 10.25 per cent per annum on a 3-year deposit. This is at least 1 per cent higher then what banks offer. The 3-year yield works to a decent 11.34 per cent.

Strong pedigree

Being a part of the Mahindra Group the company has a strong pedigree. It must be remembered that company fixed deposits are unsecure deposits and hence it's necessary to go in for companies with a strong promoter background. Little worries on that count. 

Strong credit rating

The Fixed Deposits have a Crisil rating of 'FAAA', which indicates a high level of safety. Chances of defaulting on payments of interest and principal is minimal.

Interest rates are likely to fall

Interest rates in the economy are likely to fall and hence it would be a good idea to lock money at a higher interest rate for three years. The RBI has already cut repo rates twice this year.

Cumulative and non cumulative option

Cumulative as well as Non Cumulative options are available as per the convenience of the depositor. However, rates on the non cumulative are lower.