5 reasons to buy the Mahindra Finance deposit if you are looking at fixed returns

A good yield over a three year period

If you invest in the Mahindra Finance Fixed deposit for a period of three years under the cumulative scheme, you get an interest rate of 10.25 per cent, with the yield going to as high as 11.34 per cent. Now, this is significantly higher than what banks are currently offering.

A very high CRISIL rating

The Mahindra Finance Fixed Deposit has a Crisil rating of 'FAAA', which indicates a high level of safety. The company is promoted by the Mahindra Group, which makes the chances of default on principal amount and maturity almost negligible.

Inflation maybe under control

Interest rates in the economy may fall, given that the government is focusing on curbing inflation. Hence, by investing over a period of three years at an interest rate of 10.25 per cent, investors are hedging against declining interest rates.

Higher yields for senior citizens

Senior citizens are entitled to a higher interest rate of 0.25 per cent, making their yields even more attractive.

An option for retired folk

Investors like retired folk can look at the non cumulative payment options, including the quarterly, half yearly and yearly payout of interest.