Depositors seeking returns on fixed deposits have received a notable boost following a revision in rates by non-banking financial company Bajaj Finance. The lender has raised interest rates across fixed deposit schemes by 15 to 40 basis points for maturities ranging from 12 months to 60 months. These updated rates have formally taken effect starting October 7.
Revision Follows Reserve Bank Monetary Tightening
The adjustment comes on the heels of the Reserve Bank of India Monetary Policy Committee decision to increase the policy repo rate by 25 basis points, moving it from 5.25 percent to 5.50 percent while simultaneously shifting its policy stance to calibrated tightening. Following that central bank action, the financial firm revised its deposit offerings to keep them aligned with shifting market conditions and provide updated returns to depositors.
Updated Return Slabs for Regular Customers
According to the company declaration, the most substantial enhancements have been applied to longer investment tenures. For regular depositors, the interest rate for the 12 to 17 month tenure rises by 20 basis points to reach 6.80 percent. Deposits placed in the 18 to 30 month bracket see an increase of 15 basis points, taking the applicable interest rate to 7.00 percent. The most significant move appears in the 31 to 60 month bracket, where rates have climbed by 35 basis points, lifting the return from 7.40 percent to 7.75 percent.
Enhanced Margins for Senior Citizens
Senior citizen depositors receive a heightened spread under the newly restructured framework. The additional interest margin provided over and above regular investor rates has been raised to 40 basis points from the previous 35 basis points. Consequently, rates for senior citizens now stand at 7.20 percent for durations of 12 to 17 months, 7.40 percent for deposits spanning 18 to 30 months, and 8.15 percent for the 31 to 60 month tenure. Prior to this revision, the highest regular rate available to elderly depositors stood at 7.75 percent.
Renewal Perks and Flexible Payout Features
Existing customers who choose to renew their maturing deposits are eligible to receive an additional 10 basis points. With this renewal bonus included, the peak rate climbs to 7.85 percent for regular investors and reaches 8.25 percent for senior citizens within the 31 to 60 month investment bracket. These restructured returns are applicable to fresh deposits as well as existing account renewals. Customers can select between cumulative deposits, where interest is credited at maturity, and non-cumulative options offering monthly, quarterly, half-yearly, or annual payouts.
Stock Performance During Broader Market Drop
In equity trading, Bajaj Finance shares were seen moving in positive territory on Wednesday, showing resilience even as broader benchmark indices such as the Sensex and Nifty registered declines. At the time of reporting, shares of Bajaj Finance were changing hands at Rs 967.00, advancing by Rs 3.90, which represents a gain of 0.40 percent over the previous market close.
