Muthoot Finance Fixed Deposit Rates (2026)

1. Variants of Muthoot Capital Fixed Deposit

Muthoot Capital offers different FD options based on how you want to receive your interest.

1. Cumulative FD

In this option, the interest keeps getting added to your deposit and compounds over time. You receive the principal and total interest together at maturity.

Best For: Investors who do not need regular income and want a bigger maturity amount.

2. Annual Income FD

This FD pays interest once every year directly to your bank account.

• Interest Rate: Up to 9.10% p.a. (General)
• Interest Rate: Up to 9.35% p.a. (Senior Citizens)
• Tenure: Up to 36 months

Best For: Investors looking for yearly income without touching their principal.

3. Monthly Income FD

This option provides a fixed interest payout every month.

• Interest Rate: Starts from around 7.65% p.a.
• Interest Payout: Monthly
• Tenure: 1 year and above

Best For: Retirees, senior citizens, and anyone looking for regular monthly income.

💡 Simple Rule –

• Prefer yearly payouts? → Choose Annual Income FD
• Want the highest maturity amount? → Choose Cumulative FD
• Need monthly income? → Choose Monthly Income FD

2. Key Features & Important Rules

Before investing in a Muthoot Capital Fixed Deposit, here are some important things to know:

1. No Savings Account Required

Unlike bank FDs, you do not need to open a savings account with Muthoot Capital to invest in its FD schemes.

2. Loan Against FD Facility

If you need funds during an emergency, you may be able to get a loan against your FD. Generally, loans are available for up to 75% of the deposit amount, subject to company terms and conditions.

3. Flexible Interest Payout Options

You can choose how you want to receive your interest:

• Monthly Income Plan
• Annual Income Plan
• Cumulative Growth Plan

This allows you to select a plan based on your financial needs.

4. Multiple Tenure Choices

Muthoot Capital offers FD tenures ranging from 12 months to 60 months, giving investors flexibility to choose short-term or long-term investments.

5. Strong Credit Rating

Muthoot Finance FD has received an A+/Stable credit rating from CRISIL, indicating adequate financial strength and timely repayment capability.

💡 Quick Tip – Higher FD rates are attractive, but always check the credit rating and premature withdrawal rules before investing. A slightly lower rate from a stronger-rated institution can sometimes be the safer choice.

3. Premature Withdrawal Rules

You can close your Muthoot Finance FD before maturity if needed. However, the company generally pays interest at 2% lower than the applicable rate for the period your money remained invested.

Example: Suppose you invest ₹1 lakh in an FD and the applicable interest rate for the completed period is 8.50%. If you close the FD early, the company may deduct 2%, and your effective interest rate becomes 6.50%.

Compared to many banks, where premature closure penalties are usually around 0.50% to 1.00%, corporate FDs often have slightly higher penalties.

💡 Practical Tip – If you think you may need the money within 1–2 years, choose a shorter FD tenure. Breaking a long-term FD early can reduce your actual return more than expected.

4. Taxes, TDS & Important Rules

Before investing in a Muthoot Finance FD, it is important to understand how tax works.

1. TDS Rules

• TDS is deducted at 10% if your annual FD interest exceeds the applicable limit.
• If PAN is not provided, TDS may increase to 20%.

2. Form 15G / Form 15H

If your total annual income is below the taxable limit, you can submit:

• Form 15G (for regular investors)
• Form 15H (for senior citizens)

This can help prevent TDS deduction.

3. FD Interest Is Taxable

Interest earned from corporate FDs is fully taxable and must be reported while filing your Income Tax Return (ITR).

Simple Example

Suppose Sakshi invests ₹2 lakh in a Muthoot Finance FD at 9% interest.

• Annual interest earned = ₹18,000
• Since the interest is below the TDS threshold, no TDS may be deducted.
• However, Sakshi still needs to include this ₹18,000 as income while filing her ITR.

Many investors think “No TDS” means “No Tax.” That’s not true. Even if TDS is not deducted, FD interest is still taxable according to your income tax slab.

5. How to Invest in a Muthoot Finance FD

Opening a Muthoot Finance Fixed Deposit is simple and can be done online or by visiting a branch.

Step 1: Keep Your Documents Ready

Before applying, keep these documents handy:

• PAN Card (mandatory)
• Aadhaar Card, Passport, or other valid ID proof
• Address proof
• Cancelled cheque or bank passbook copy
• Passport-size photograph (if required)

Step 2: Submit an FD Enquiry

Visit the Muthoot Capital FD page and fill in:

• Your Name
• Email Address
• Phone Number
• Pincode
• Select Service: Fixed Deposit (FD)

After submitting the form, a representative may contact you with further details.

Step 3: Choose Your FD Plan

Select:

• FD tenure (12 to 60 months)
• Cumulative FD or Monthly/Annual Income FD
• Deposit amount
• Nominee details

Step 4: Make the Payment

Transfer the deposit amount through:

• Net Banking
• UPI
• Bank Transfer
• Cheque

Once the payment is verified, your FD receipt and investment details will be shared through email or other registered contact details.

💡 Practical Tip – If you’re investing for regular monthly expenses, choose the Monthly Income FD. If you don’t need the money immediately, a Cumulative FD can help you earn more through compounding.

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Frequently Asked Questions