Bajaj Finance hikes FD rate of interest  Bajaj Finance Ltd., the lending and investment arm of Bajaj Finserv, has increased its Fixed Deposits (FD) rate of interest. The company has increased its FD rates for existing loan and FD customers to up to 9% and for new customers to up to 8.75%.

For senior citizens, the FD rates are increased to up to 9.10%. These new rates are offered on an annual basis, applicable under the cumulative and non-cumulative payout schemes on a 36-60 months tenor. The annual rate of interest is valid for deposits up to Rs 5 crore (w.e.f 17 October 2018).

For the same schemes and tenor, the new Fixed Deposit customers would get 8.75% instead of 8.50% earlier. The existing loan and FD customers are offered a rate of 9% which previously was 8.75%. The rate of interest, has thus recorded a rise of 0.25% on a tenor of 36-60 months across all customer categories, the company said.

For the recently launched special tenor scheme of 15 months with a minimum FD size of Rs. 1 lakh, the FD rate of interest would be up to 8.05% for new customers and 8.40% for senior citizens.

Upon renewal, senior citizens will now earn a higher rate of interest of 9.35% which previously was 9.10% and new customers will be offered rate of interest of 9% compared to 8.75% prior, for a tenor ranging between 36 to 60 months.

The customer can start with a minimum deposit of Rs 25,000. Senior citizens investing in the Bajaj Finance fixed deposit earn an additional 0.35% rate of interest over and above the card rate.

Bajaj Finance FD has been accredited ‘FAAA/Stable’ rating by CRISIL and ‘MAAA (Stable)’ rating by ICRA which indicate highest degree of safety with regard to timely payment of interest and principal on the instrument. Deposit book stood at Rs. 9,427 crore as of 30 June 2018 which was a growth of 85% from Rs. 5,095 crore as of 30 June 2017. Deposits contributed to 14% of the standalone borrowings.

Rate structure

Tenor in months Minimum deposit (in Rs.) Cumulative Renewal
Existing rates
New rates w.e.f 17 Oct 2018
New Customers 12 – 23 25,000 8.00% 8.00% 0.25% extra
24 – 35 8.15% 8.15%
36 – 60 8.50% 8.75%
Special tenor scheme
15 1,00,000 8.05% 8.05%
Senior Citizens 12 – 23 25,000 8.35% 8.35% 0.25% extra
24 – 35 8.50% 8.50%
36 – 60 8.85% 9.10%
Special tenor scheme
15 1,00,000 8.40% 8.40%
Bajaj Group employees/Existing FD or loan customers 12 – 23 25,000 8.25% 8.25% 0.25% extra
24 – 35 8.40% 8.40%
36 – 60 8.75% 9.00%
Special tenor scheme
15 1,00,000 8.30% 8.30%
Author
Staff Writer

This article is written by RupeeIQ editorial staff.