The popularity of Corporate FDs has spiked in the last few years when compared to bank FDs. The sole reason behind the trend is the higher rate of interest offered by corporate FDs than bank FDs. Nowadays, several leading Non-Banking Finance Companies (NBFCs) and financial institutions have been offering corporate FDs at higher and attractive interest rates.
Corporate FDs also known as term deposits offers citizens a fixed interest rate irrespective of market conditions. Citizens are allowed to choose various tenures ranging from months to years as per their choice.
It is important to note that you must check the corporate FDs safety ratings before selecting any of them. Mahindra Finance FDs are quite safe as it has credit agency CRISIL rating of FAAA. Mahindra Finance is offering attractive interest rates on its FDs and the interest rates remain unaffected by the continuously changing market scenario and fluctuations in interest rates.
You can opt for various FDs such as Dhanvruddhi Cumulative Scheme of up to Rs 50 lakh, Dhanvruddhi non-cumulative scheme of up to Rs 50 lakh, Samruddhi cumulative scheme of up to Rs 50 lakh, Samruddhi non-cumulative scheme of up to Rs 50 lakh, bulk deposit (50 lakhs. Upto Rs 5 crore) cumulative scheme, and bulk deposit (50 lakhs. Upto Rs 5 crore) non-cumulative scheme, etc.
The corporate FD offers an additional interest rate of 0.25% for senior citizens.
If you choose Dhanvruddhi Cumulative scheme, you can fetch an interest rate of 6.50% p.a. on a minimum investment of Rs 5000 for a tenure of 42 months. The effective yield will be 7.06%. Senior citizens will get an additional benefit of 0.25 %. You must invest a minimum amount of Rs 5000 for this FD. If you are a senior citizen, you can fetch an interest rate of 6.75%.
If you choose Dhanvruddhi non-cumulative scheme, you can fetch an interest rate of 6.50% p.a. on minimum amount of Rs 25,000 for a period of 42 months. This scheme is applicable for deposits of up to Rs 1 crore. You may choose any scheme that suits you the best.