Bajaj Finance, the lending arm of Bajaj Finserv Ltd, announced on Saturday an increase in interest rates on term deposits by up to 35 basis points for maturities between 15 months and 23 months, effective Saturday 4 March. After the last rate hike, senior citizens can receive up to 8.20 percent per year for a 44-month term.
Depositors under the age of 60 can earn up to 7.95 percent per year. For the special 33-month term introduced by Bajaj Finance last year, non-seniors can take advantage of FD interest rates of up to 7.75 percent per year, while seniors can earn up to 8.00 percent per year, Bajaj Finance said in an explanation .
A comparison of Bajaj Finance’s old and new interest rates for cumulative FD for non-seniors.
Sachin Sikka, Executive Vice President (Fixed Deposits and Investments) of Bajaj Finance Ltd. said: “The current interest rate environment allows investors to make the most of fixed term deposits. Our revised interest rates on fixed deposits in the 44-month bucket are up to 8.20 percent, allowing investors to take advantage of inflation-beating rates and liquidity. Booking an FD with Bajaj Finance is fully digital and paperless, making it an easy and secure process for investors.”
Recently, Suryoday Small Finance Bank (SSFB) and Equitas Small Finance Bank (ESFB) also revised their Fixed Deposit (FD) interest rates effective March 1, 2023. Interest rates for Suryoday Small Finance Bank in 5-10 year maturities have been revised by 75-125 basis points (bps). The bank also revised interest rates on savings accounts by as much as 200 basis points (bps). The increase by Equitas Small Finance Bank will allow FD clients to earn 8.20 per cent interest when investing less than Rs 2 crore for an 888 day tenure.
The RBI last month hiked the repo rate by 25 basis points to 6.50 percent, which was the sixth straight hike since May 2022 in a bid to control inflation.
According to the latest available data, India’s retail inflation rose to 6.52 percent in January 2023 for expensive groceries and fuel. In December 2022, inflation based on the consumer price index (CPI) had fallen to 5.72 percent. In November 2022 it had fallen to 5.88 percent. Retail inflation came in below the RBI’s 2-6 percent band at 5.88 percent in November after staying above it for 10 straight months.
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Haris is a business journalist with over eight years of experience. He writes on various topics related to markets, business and companies.…Read more