Bajaj Finance Limited, the country’s leading non-banking financial company (NBFC), has given a big gift to investors looking for secure and fixed income. The company has increased the interest rates on its fixed deposit (FD) schemes of various tenures by 15 to 40 basis points (0.15% to 0.40%). The revised rates have officially come into effect. After this increase, the maximum interest rate for general investors has become 7.75% per annum, while senior citizens aged 60 years and above are being given an excellent interest of up to 8.15% on fresh deposits. At the same time, for the elderly who renew the maturing FD, this return has increased to an attractive level of 8.25%.
In a review conducted by Bajaj Finance, the biggest benefit has been given to customers who lock money for a long period. The company has increased the interest rate for general citizens on FDs with tenure ranging from 31 months to 60 months (5 years) from 7.40% to 7.75%, a direct increase of 35 basis points. At the same time, for the same period, the interest rate for senior citizens has been directly increased from 7.75% to 8.15%, that is, it has been increased by 40 basis points (0.40%). Along with this, the additional interest benefit available to senior citizens has also been increased to 0.40% per annum from the earlier 0.35%.
Details of the revised annual interest rates for new cumulative (paid on maturity) deposits ranging from ₹15,000 to ₹3 crore are as follows:
| Tenure | rate for general citizens | New rate for senior citizens | Additional benefits to senior citizens |
| 12 to 17 months | 6.80% (earlier 6.60%) | 7.20% (previously 6.95%) | +0.40% |
| 18 to 30 months | 7.00% (earlier 6.85%) | 7.40% (earlier 7.20%) | +0.40% |
| 31 to 60 months | 7.75% (earlier 7.40%) | 8.15% (earlier 7.75%) | +0.40% |
| 31 to 60 months (renewal) | 7.85% (Special Renewal) | 8.25% (highest rate) | +0.40% |
To retain existing customers, the company has decided to offer an additional ‘renewal incentive’ of 0.10% (10 bps) on renewal of maturing FDs. Due to this, senior citizens renewing their FD for 31 to 60 months will have to pay 8.15% + 0.10% i.e. total. 8.25% interest per year Will get benefit. At the same time, retired people or investors who want regular monthly income can choose the non-cumulative option. In this, the facility of monthly, quarterly, half-yearly or annual interest payment is available. For example, senior citizens choosing monthly payout on a new FD for 31 to 60 months will receive pension-like interest in the account every month at an effective rate of 7.86% per annum.
On the security front, fixed deposit schemes of Bajaj Finance have been approved by leading rating agencies ‘CRISIL’ and ‘ICRA’. AAA/Stable Has received the highest security rating of Rs. 100 crore, which reflects the complete safety of capital and reliability of timely interest payment.
-
Minimum Deposit: Investment can be started with a minimum of ₹15,000 through online or offline medium.
-
Loan Facility: In case of emergency, ‘Loan Against FD’ up to 75% of the deposit amount can be obtained without breaking the FD.
-
Tax Rules: Since this is an NBFC FD, TDS deduction rules apply if the interest earned is more than ₹10,000 in a financial year under Section 194A of the Income Tax Act. Investors can submit Form 15G or 15H to get exemption from TDS.