New Delhi: Non-banking finance company (NBFC) Bajaj Finance Ltd has launched a special 39-month fixed deposit (FD) scheme with rate capped at 7.85% for senior citizens with effect from Tuesday. For non-senior citizens, the FD rate is 7.60%. However, the highest rate for senior citizens has been fixed at 7.95% for 44 months. For non-senior citizens, the highest FD rate for the same tenure (44 months) is 7.70%. Cumulative FDs of 12-23 months will fetch 6.80% interest, while special FDs of 15 months will fetch 6.95% (for non-senior citizens).
On the other hand, 12-23 months cumulative FD for senior citizens will fetch 7.05% interest, while 15 months special FD will fetch 7.20% (for senior citizens). The company allows you to start FDs with tenures ranging from 12 to 60 months.
“We used to revise rates once in 6 months earlier, but we have revised more this year, (but not always across the card), due to increase in repo rates by RBI and other macro factors. However this time with an increase of around 25 basis points, we are also starting a new tenor of 39 months,” said Sachin Sikka, Executive Vice President, Fixed Deposits & Investments, Bajaj Finance Ltd.
Take a look at the new fixed deposit rates introduced by Bajaj Finance.
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After the Reserve Bank of India (RBI) cut interest rates amid the pandemic, many customers found FD rates offered by NBFCs better than those of banks. Furthermore, RBI regulates both banks and NBFCs. While Bajaj Finance is now offering a new special tenure FD, it is also offering higher rates for its existing tenure. Its FDs are rated CRISIL AAA/Stable and [ICRA]AAA (stable). Experts are of the view that FD rates will rise due to continued increase in key policy rates due to increase in inflation.
Thus, depositors should think about further hike in rates in the present scenario before investing in FD scheme. For example, if you choose a shorter deposit tenure, you can reinvest the maturity proceeds at higher rates if interest rates keep rising.
The average ticket size of Bajaj Finance Fixed Deposit is 3.5 lakh per depositor. The company has a depositor base of 4.25 lakh with more than 10 lakh FDs. The company may also cross-sell financial products to its FD holders.
“We have a presence in 3,700 locations across the country. However, an investor need not visit our physical branches for their investment needs, as they can directly invest in FDs from our Bajaj Finserv mobile app. Currently, we have around 26 million downloads,” said Sikka.
Points to note: Compared to NBFCs with banks, the penalty for premature termination of FD is higher. NBFCs also do not come under this 5 lakhs as a guarantee provided by the Deposit Insurance and Credit Guarantee Corporation (DICGC).
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