Fixed deposit accounts are a good option for risk-averse investors. Over a set length of time, interest is accrued on the deposited amount. Latest FD rates on deposits under Rs.2 crore range from 3.00 per cent per annum (for deposits less than a year) to 9.54 per cent per annum (for deposits of up to 10 years). It depends on the sort of financial institution (public sector, private sector, or small finance banks). The duration might range from seven days to ten years. Senior citizens receive preferential interest rates. It is typically in the range of 0.25 per cent to 0.65% higher than current rates.
Bajaj Finance Ltd, a non-banking finance company (NBFC), has increased its latest FD rates, with the highest rate now fixed at 7.45 per cent for senior citizens for 44 months, beginning Tuesday. The maximum FD rate for non-senior persons is 7.20 per cent for the same tenor (44 months). A 12-month cumulative FD will yield 5.75 per cent, whereas a 15-month cumulative FD will yield 6%. (for non-senior citizens).
Many clients noticed that the latest FD rates supplied by NBFCs were better than those offered by banks after interest rates were slashed due to the epidemic. The Reserve Bank of India regulates both banks and NBFCs (RBI).
HDFC Ltd and Bajaj Finance are two NBFCs known for their corporate FDs. With HDFC Ltd’s planned merger with its linked bank, Bajaj Finance is expected to profit and experience an increase in FDs.
In January 2014, Bajaj Finance began accepting individual FDs. Since then, the amount of its FD programme has risen to $30,800 crore (as of Q4, FY 22). Bajaj Finance makes money primarily by lending money, and it has a customer base of 57 million people. As of March 2022, its net non-performing assets were 0.68 per cent.
FDs let the company access money at competitive FD rates, providing a banking-style arrangement. Bajaj Finance can also cross-sell financial products to its depositors, who number roughly 3.5 lakh and have approximately 8 lakh FDs with the company. FDs represent 19 percent of Bajaj Finance’s liabilities on a group level. CRISIL and ICRA have given its FDs a AAA rating.
Bajaj Finance FDs have somewhat higher interest rates than bank FDs. With effect from May 10, the highest rate (for elderly persons) are 7.45 per cent.
You can open FDs with Bajaj Finance with 12 to 60 months’ terms. Bajaj Finance depositors create 3.5 lakh FDs on average and hold them with the company for 30-33 months.
You are no longer required to visit a branch. You may book FDs from start to finish on our website or app, and this direct channel accounts for about 9% of Bajaj Finance’s deposits. Direct lending does not result in a higher interest rate. The website receives roughly half a million deposits per month, with about 7-9 per cent of people who begin the process of booking an FD.
NBFCs are not covered by the Deposit Insurance and Credit Guarantee Corporation’s 5 lakh guarantee (DICGC). Assets do not secure deposits at NBFCs; therefore, you must rely on the institution’s financial strength.
Bajaj Finance offers fixed-rate deposits with terms ranging from 12 to 60 months. However, according to Sikka, most FDs are in the 30-36 month range, indicating that household savers are being cautious.
On April 25, Bajaj Finance increased the interest rate on its fixed deposits. Given the central bank’s surprise 0.4 per cent rise in the repo rate on May 4, the NBFC made another hike on May 10.
Before deciding to book an FD, savers should watch for potential rate hikes in the current environment. If interest rates continue to rise, shorter deposit terms will allow you to reinvest the maturity proceeds at higher rates.
Bajaj Finance Limited, the lending arm of the Bajaj Finserv group, is one of the most diversified non-banking financial companies in India, with over 44 million customers. Consumer Durable Loans, Lifestyle Finance, Digital Product Finance, Personal Loans, Loan against Property, Small Business Loans, Home Loans, Credit Cards, Two-wheeler and Three-wheeler Loans, Commercial lending/SME Loans, Loan against Securities, and Rural Finance, which includes Gold Loans and Vehicle Refinancing Loans as well as Fixed Deposits, are among the company’s product offerings. Bajaj Finance Limited is proud to have the highest credit rating of any NBFC in the country, FAAA/Stable.
