This section provides information about Fixed Deposits (FDs) and Bonds as financial instruments. It aims to create awareness about their features, types, and general benefits. This content is for informational purposes only and does not constitute investment advice.
Fixed Deposits (FDs) are offered by banks and financial institutions. They provide a fixed rate of interest over a specified period. FDs are considered a low-risk instrument since the principal and interest are predetermined. Early withdrawal may involve a penalty, and returns are generally lower than market-linked instruments.
| Period (Months) | Monthly % p.a. | Quarterly % p.a. | Half-Yearly % p.a. | Yearly % p.a. |
|---|---|---|---|---|
| 12 | 6.79 | 6.82 | 6.88 | 7.00 |
| (Digital Only) 15 | 7.02 | 7.06 | 7.12 | 7.25 |
| 18 - 23 | 6.93 | 6.97 | 7.03 | 7.15 |
| 24 - 35 | 7.02 | 7.06 | 7.12 | 7.25 |
| 36 - 60 | 7.35 | 7.39 | 7.46 | 7.60 |
| Tenure (Months) | Cumulative Option* ROI (p.a.) | Non-Cumulative Option ROI (p.a.) | ||||
|---|---|---|---|---|---|---|
| Rate of Interest (p.a.) | Tentative yield to maturity | Monthly | Quarterly | Half Yearly | Annual | |
| 12 – 23 months | 6.85% | 6.85% | 6.64% | 6.68% | 6.74% | 6.85% |
| 24 – 35 months | 7.00% | 7.25% | 6.78% | 6.82% | 6.88% | 7.00% |
| 36 – 47 months | 7.10% | 7.62% | 6.87% | 6.91% | 6.97% | 7.10% |
| 48 – 59 months | 7.10% | 7.89% | 6.87% | 6.91% | 6.97% | 7.10% |
| 60 months | 7.10% | 8.18% | 6.87% | 6.91% | 6.97% | 7.10% |
* For cumulative option, interest rate is compounded annually on March 31st.
| Period (Months) | Minimum Amount (Rs.) | Amount Payable (Rs.) | Interest p.a. *$ (Yearly) |
|---|---|---|---|
| 15 | 5000 | 5428 | 6.75% |
| 30 | 5000 | 5925 | 7.00% |
| 42 | 5000 | 6340 | 7.00% |
* Interest rates are indicative and subject to change as per Mahindra Finance Ltd policies.
Bonds are debt instruments issued by governments or corporations. They pay a fixed interest over a defined period and return the principal at maturity. Bonds can vary in tenure and risk profile. Different types include government bonds, corporate bonds, municipal bonds, zero-coupon bonds, convertible bonds, high-yield bonds, gold bonds, and sovereign gold bonds.
These bonds provide tax exemption on long-term capital gains if reinvested as per Income Tax regulations. They are issued by government entities and have a specified lock-in period. The tax benefit is subject to government conditions.
Issued by the government, these bonds are considered safe. They are backed by government guarantee and are available in short, medium, or long-term tenures.
Issued by companies, these bonds usually offer higher interest than government bonds. Creditworthiness of the issuer is important, and these carry comparatively higher risk.
Issued by local or state governments for public projects, some municipal bonds offer tax-free interest income.
These bonds are sold at a discount and pay no periodic interest. The face value is received at maturity. Suitable for long-term investors seeking a lump sum at maturity.
These can be converted into equity shares of the issuing company. They provide both potential capital growth and interest income.
These bonds offer higher returns than other bonds but come with higher risk. They are issued by lower-rated companies and are also called junk bonds.
Issued by the Government of India, these bonds are denominated in grams of gold. They provide returns based on gold price appreciation along with interest income.
These government securities allow investors to invest in gold without holding physical gold. They are tradable on stock exchanges with defined minimum and maximum limits.
