Bajaj Finance hikes FD interest rates by 30 bps: Earn up to 7.50%
Fixed deposit (FD) interest rates have raised by up to 30 basis points thanks to Bajaj Finance. According to a press release from Bajaj Finance, the new rates will take effect on October 7, 2022.
Bajaj Finance has increased the interest rates on fixed deposits (FD) by up to 30 basis points. The revised rates are applicable on FDs up to Rs 5 crore and will be effective from October 7, 2022, stated Bajaj Finance in a press release.
The new rates will apply to new deposits as well as renewals of maturing accounts. Bajaj Finance will offer 7.5% per year for a 44-month term for citizens below age of 60, while seniors can earn up to 7.75% per year on special FDs.
FD interest rate table
Special FD interest rates FD interest rates for senior citizens Special FD interest rates According to the Bajaj Finance press release, “With the online FD process, investors can book an FD in few minutes and can reap the benefit of the lucrative interest rates. Bajaj Finance Fixed Deposit has the highest stability ratings with CRISIL AAA/STABLE and [ICRA]AAA(Stable) rating offering one of the safest investment options for investors.”
RBI rate hike On September 30, 2022, the RBI raised its repo rate by 0.5%; this is the cycle's fourth straight repo rate increase. Investors in fixed deposits who want to generate larger returns than inflation can benefit from this.
Banks hike FD rates Banks including Indian Bank, Canara Bank, Kotak Mahindra Bank have already hiked their fixed deposit interest rates. A large number of small banks have begun to offer FD rates of 7% to regular residents and rates of 7.5% or higher to elderly citizens. For instance, elderly residents receive returns from Bandhan Bank and IndusInd Bank that are at least 7.5% more than the highest rate offered to common citizens, which is 7%.
Should you book long term FDs after current hikes? Although a rate increase is good news for depositors, it also presents a number of challenges. Nobody knows where the rates will ultimately go or when they will peak, despite the fact that the direction of interest rates has reversed. If you wait longer to book your FD for a higher rate, you will lose out on the already increasing rates, and if you book long-term FDs after just a few hikes, you may lose out if the rates continue to rise in the future.
