Bajaj Finance Ltd., one of India’s largest non-banking financial companies (NBFCs), has increased interest rates on its fixed deposits (FDs) by 15 to 40 basis points across tenures ranging from 12 to 60 months.
The revised FD rates take effect on Wednesday and will apply to both new deposits and renewals. The NBFC has offered the biggest rate increase on longer-term deposits, with rates for 31 to 60 months rising by 35 basis points for regular depositors and 40 basis points for senior citizens.
Sachin Sikka, Senior Executive Vice President (Deposits & Wealth Management) at , said: “Fixed Deposits continue to be an important part of a balanced savings portfolio, particularly for senior citizens looking for predictable returns. We have weighted our rate hike towards longer tenures, so depositors can lock in higher returns for up to five years on a AAA-rated deposit they can open online in minutes.”
“The additional benefit on renewals is our way of thanking customers who continue to trust us with their savings,” Sikka added.
Bajaj Finance FD rates for regular depositors
Regular depositors can now earn interest of up to 7.75% per annum on cumulative fixed deposits with a tenure of 31 to 60 months. This is higher than the earlier rate of 7.40% per annum.
For deposits with shorter tenures, the interest rate for 12- to 17-month tenors has been increased from 6.60% to 6.80% per annum. For deposits with a tenure of 18 to 30 months, the rate has risen from 6.85% to 7.00% per annum.
The revised rates apply to fresh deposits booked by regular depositors.
Senior citizens get higher FD interest rates
Bajaj Finance has also increased the additional interest rate offered to senior citizens. Senior citizens will now receive an additional 0.40% per annum on the applicable regular depositor rate across all tenures, up from the earlier 0.35%.
Under the revised rates, senior citizens can earn up to 8.15% per annum on fresh cumulative deposits with a tenure of 31 to 60 months. This compares with the earlier rate of 7.75% per annum.
For tenures of 12 to 17 months, senior citizens will now earn 7.20% per annum, while deposits with tenures of 18 to 30 months will offer 7.40% per annum.
Higher rates for FD renewals
Depositors renewing a mature with Bajaj Finance will receive an additional 0.10% per annum over the applicable rate.
With this renewal benefit, the interest rate can go up to 7.85% per annum for regular depositors and 8.25% per annum for senior citizens. The 8.25% rate is the highest available under the NBFC’s revised FD structure.
Monthly, quarterly and annual interest payout options
Investors can choose between cumulative and non-cumulative fixed deposits. Under the cumulative option, the interest is paid along with the principal at maturity.
Under the non-cumulative option, investors can choose monthly, quarterly, half-yearly, or annual interest payouts. The rates for non-cumulative deposits have also been revised in line with the new FD rate structure.
For instance, a senior citizen opting for monthly interest payouts on a 31- to 60-month deposit will now earn 7.86% per annum, up from 7.49% earlier.