Bajaj Finance Hikes Fixed Deposit Rates by up to 40 Bps; Senior Citizens to Get 8.85%
Source: GNews Fixed Income
Arth Insight · What this means for your wallet
- Bajaj Finance has increased FD rates by up to 0.40% across different tenures.
- Senior citizens can now earn a maximum interest rate of 8.85% per annum.
- Regular depositors can earn up to 8.60% per annum on a 42-month tenure.
Bajaj Finance has increased interest rates on its Fixed Deposits by up to 40 basis points across various tenures. The non-banking financial company (NBFC) now offers a peak interest rate of 8.85% for senior citizens on specific tenures.
- ▸Bajaj Finance has increased FD rates by up to 0.40% across different tenures.
- ▸Senior citizens can now earn a maximum interest rate of 8.85% per annum.
- ▸Regular depositors can earn up to 8.60% per annum on a 42-month tenure.
- ▸The company holds AAA safety ratings from both CRISIL and ICRA.
- ✓Bajaj Finance has increased FD rates by up to 0.40% across different tenures.
- ✓Senior citizens can now earn a maximum interest rate of 8.85% per annum.
- ✓Regular depositors can earn up to 8.60% per annum on a 42-month tenure.
- ✓The company holds AAA safety ratings from both CRISIL and ICRA.
Bajaj Finance, one of India’s largest Non-Banking Financial Companies (NBFCs), has announced a significant hike in its Fixed Deposit (FD) interest rates. The company has increased rates by up to 40 basis points (0.40%) effective immediately, providing a boost to retail savers looking for high-yield debt instruments in a stable interest rate environment.
Revised Interest Rates for Retail Investors
Following this revision, regular depositors can now earn interest rates of up to 8.60% per annum. The hike is spread across various tenures, with the most significant increases seen in the mid-to-long term buckets. For senior citizens, the benefits are even higher, as they continue to receive an additional 0.25% premium over the standard rates, pushing their maximum yield to 8.85% for specific tenures.
Tenure-Specific Highlights
- Maximum Rate: 8.85% for senior citizens and 8.60% for regular investors on a tenure of 42 months.
- Short Term: Rates for tenures between 12 to 23 months have also seen upward adjustments to remain competitive with bank FDs.
- Digital Advantage: Investors booking FDs through the Bajaj Finserv app or website often have access to these peak rates more seamlessly compared to offline channels.
Why This Matters for Retail Savers
The move by Bajaj Finance comes at a time when the Reserve Bank of India (RBI) has maintained a pause on the repo rate. While many banks have started plateauing their FD rates, this hike by a major NBFC suggests a continued demand for credit, prompting the lender to offer higher incentives to attract retail deposits. For conservative investors, these rates offer a significant spread over traditional savings accounts and many large-cap bank FDs, which currently hover between 7% and 7.5%.
Safety and Ratings
Bajaj Finance FDs carry the highest safety ratings from domestic agencies, including CRISIL’s AAA/Stable and ICRA’s AAA (Stable) ratings. This makes them a preferred choice for investors who prioritize capital safety alongside higher returns. However, unlike bank deposits, NBFC deposits are not covered by the Deposit Insurance and Credit Guarantee Corporation (DICGC) insurance of ₹5 lakh.
Fixed deposit investments are subject to the terms of the issuer; ensure you read the offer document carefully before investing.
Bond / FD returns and credit ratings are indicative and subject to issuer credit risk and interest-rate risk. Verify current terms with the issuer. Some listings may be sponsored. Not investment advice.
Frequently Asked Questions
What is the highest interest rate offered by Bajaj Finance now?
The highest interest rate offered is 8.85% per annum for senior citizens and 8.60% for regular investors on a tenure of 42 months.
Are Bajaj Finance Fixed Deposits safe?
Yes, they are rated AAA/Stable by CRISIL and ICRA, indicating the highest level of safety regarding timely payment of interest and principal.
Is there an additional benefit for senior citizens?
Yes, senior citizens receive an additional 0.25% interest rate over and above the regular card rates.
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