Following the Monetary Policy Committee (MPC) meeting of the Reserve Bank of India, an increase in the repo rate was announced. The head of the RBI, Sanjay Malhotra, reported a 25 basis point hike in the repo rate. Although this decision was negative for borrowers, it brought relief to fixed deposit (FD) depositors.
Immediately after the announcement of the repo rate hike by the Reserve Bank of India, a major financial company announced good news for its customers by increasing the interest rates on its fixed deposits.
After the announcement of the repo rate increase, Bajaj Finance announced an increase in FD rates. The financial company raised the interest rates on fixed deposits by up to 40 basis points. As a result, senior citizens can now expect investment returns above 8%.
Bajaj Finance increased its fixed deposit rates (Bajaj Finance FD Rates) by 15–40 basis points. The new terms take effect from October 7 and apply to tenures from 12 to 60 months. The company offers standard depositors a rate of up to 7.75%, while senior citizens are eligible for a rate of up to 8.15%.
The increase in FD rates at Bajaj Finance applies to both new and renewing deposits. The largest increase occurred for long-term deposits. For deposits of 31–60 months, the rate rose by 35 bps to 7.75% from the previous 7.40%. Similarly, for senior citizens during this period, the rate increased by 40 bps to 8.15% from the previous 7.75%.
In addition to FDs for 31–60 months, Bajaj Finance announced an increase in rates for standard depositors for the 12–17 month period to 6.80% (previously 6.60%). For the 18–30 month period, the rate was raised from 6.85% to 7%. For senior citizens, the rates for 12–17 months became 7.20%, and for 18–30 months, they became 7.40%.
The company also provided special conditions for clients renewing maturing deposits. They will receive an additional payout of 0.10%. This allows the maximum rate for renewing a standard deposit to increase to 7.85%, and for senior citizens—to 8.25%.
Announcing the FD rate hike, Bajaj Finance specified that the adjusted interest rates are set to ensure higher returns on long-term investments. According to the company's data, investments rated by CRISIL and ICRA have an AAA/Stable rating. Customers can open FDs through the Bajaj Finance website and mobile application, or by visiting branches. The minimum investment amount is 15,000 rupees, and the maximum limit is 30 million rupees.