On the other hand, a 12-23-month cumulative FD for senior citizens will fetch 7.05%, while a 15-month special FD will get 7.20% (for senior citizens). The company allows you to start FDs of tenures ranging from 12 to 60 months.
“We used to change rates about once in 6 months earlier, but we have revised it more this year, (but not always across the card), owing to the hike in repo rates by the RBI and other macro factors. This time however with an increase of about 25 basis points, we are also launching a new tenor of 39 months." said Sachin Sikka, executive vice president, Fixed Deposits & Investments at Bajaj Finance Limited.
Take a look at the new fixed deposit rates introduced by Bajaj Finance.
After the Reserve Bank of India (RBI) cut interest rates amid the pandemic, many customers found FD rates offered by NBFCs better than those at banks. Moreover, RBI regulates both banks and NBFCs. While Bajaj Finance is now offering a new special tenor FD, it is also building higher rates into its existing tenors. Its FDs are rated CRISIL AAA/STABLE and [ICRA]AAA(Stable). Experts believe that the FD rates will increase because of the sustained rise in key policy rates due to a surge in inflation.
This way, depositors should watch out for further rate hikes in the current scenario before investing in an FD scheme. For instance, if you choose shorter deposit tenures, you can reinvest the maturity proceeds at higher rates if interest rates keep increasing.
The average ticket size of fixed deposits with Bajaj Finance is ₹3.5 lakh per depositor. The company has a base of 4.25 lakh depositors with more than 1 million FDs. The company can also cross-sell financial products to its FD holders.
“We have our presence in 3,700 locations across the country. However, an investor need not visit our physical branches for his investment needs, since they can invest in FDs from our Bajaj Finserv mobile app directly. At present, we have around 26 million downloads," said Sikka.
Points to note: Comparing NBFCs with banks, penalties for premature termination of FDs are higher. NBFCs are also not covered by the ₹5 lakh guarantee provided by the Deposit Insurance and Credit Guarantee Corporation (DICGC).
