Bank FD Comparison Tool
Mahindra Finance vs Indian Bank Fixed Deposit Comparison 2026
Compare Fixed Deposit interest rates, maturity amounts, and features between Mahindra Finance (Private Sector) and Indian Bank (Public Sector). Analyze the security of public sector banking versus the convenience of private sector services.
Mahindra Finance
Private Sector
VS
Indian Bank
Public Sector
Mahindra Finance: Min ₹5,000
Indian Bank: Min ₹1,000
Security vs Convenience
DICGC Insured up to ₹5 Lakhs
Compare Your FD Returns
Adjust the parameters below to see how returns compare between the two banks
₹
Five Lakhs rupees
₹5,000₹20,00,000
years
1 year10 years
Interest Rate Comparison
Interest Rates by Tenure
General rates across different tenures
Current selection: 3 years (1095 days) -Mahindra Finance: % |Indian Bank: %
Side-by-Side Rate Comparison
Direct comparison of general rates
Mahindra Finance
Indian Bank
Highlighted = Your selected tenure
Feature Comparison
Features | Mahindra Finance Private Sector | Indian Bank Public Sector |
|---|---|---|
Minimum FD Amount | ₹5,000 | ₹1,000 |
Current Interest Rate(Selected Tenure) | % | % |
Premature Withdrawal Penalty | 1% | 1% |
Official Rate Source | View Official Rates | View Official Rates |
Mahindra Finance
Private Sector Bank
Key Advantages:
NBFC with CRISIL AAA/Stable and India Ratings IND AAA/Stable ratings
Senior citizens get +0.25% additional interest for Samruddhi Deposits
Senior citizens get +0.10% additional interest for Dhanvruddhi Deposits (up to 5 Cr)
Employees/Employees' relatives get +0.35% additional rate for Samruddhi Deposits (up to 5 Cr)
Additional 0.05% p.a. on all renewal of deposits (w.e.f. 1st June 2025)
Flexible interest payout options: Monthly, Quarterly, Half-yearly, Yearly
Minimum deposit: ₹5,000
Maximum deposit: ₹5 crores
Tenure: 12 to 60 months
Rates effective from 25th June 2025
Indian Bank
Public Sector Bank
Key Advantages:
Government-owned public sector bank
Established in 1907, nationalized in 1969
Wide network across India and abroad
Special Ind Secure FD scheme (444 days)
Ind Green Deposit for sustainable development
Senior citizens get +0.50% additional interest
Important: Fixed Deposit Safety & Insurance Coverage
₹5 Lakh Insurance Limit
The Deposit Insurance and Credit Guarantee Corporation (DICGC) provides insurance coverage of up to ₹5 lakhs per depositor per bank. This means if you deposit more than ₹5 lakhs in a single bank, only ₹5 lakhs is guaranteed by the government.
⚠️ Recommendation:
Never deposit more than ₹5 lakhs in a single bank. If you have larger amounts, distribute them across multiple banks to ensure full insurance coverage.
Smart Distribution Strategy
For ₹10 lakhs: Split between Mahindra Finance (₹5L) + Indian Bank (₹5L)
For ₹15 lakhs: Add a third bank to the mix
Best of Both: Combine Mahindra Finance (convenience) with Indian Bank (security)
💡 Pro Tip:
You can also open FDs in different family members' names in the same bank to get additional ₹5 lakh coverage for each account holder.
Key Insights & Recommendations
Choose Mahindra Finance If:
- •Minimum amount: ₹5,000
- •Private Sector banking preference
- •NBFC with CRISIL AAA/Stable and India Ratings IND AAA/Stable ratings
- •Senior citizens get +0.25% additional interest for Samruddhi Deposits
- •Senior citizens get +0.10% additional interest for Dhanvruddhi Deposits (up to 5 Cr)
Choose Indian Bank If:
- •Minimum amount: ₹1,000
- •Public Sector banking preference
- •Government-owned public sector bank
- •Established in 1907, nationalized in 1969
- •Wide network across India and abroad
Best Strategy:
- •Split large amounts across both banks
- •Keep ≤₹5L per bank for insurance
- •Use Mahindra Finance for convenience
- •Use Indian Bank for stability
- •Review rates periodically
Explore more FD comparisons
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