Bajaj Finance, the lending arm of Bajaj Finserv Ltd, on Saturday announced an increase in interest rates on fixed deposits by up to 35 basis points for tenures between 15 months and 23 months, effective from Saturday, March 4. After the latest hike, senior citizens can receive up to 8.20 per cent per annum on a tenure of 44 months.
Depositors below 60 years can earn up to 7.95 per cent per annum. For the special tenure of 33 months introduced last year by Bajaj Finance, non-senior citizens can avail FD interest rates of up to 7.75 per cent per annum while senior citizens can earn up to 8.00 per cent per annum, Bajaj Finance said in a statement.
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Sachin Sikka, executive vice-president (fixed deposits and investments) of Bajaj Finance Ltd., said, “The current interest rate environment allows investors to make the most of fixed deposits. Our revised interest rates on Fixed Deposits in the 44-month bucket are as high as 8.20 per cent, enabling investors to gain from inflation-beating rates and liquidity. Booking an FD with Bajaj Finance is completely digitised and paperless, making it a simple and secure process for investors.”
Recently, Suryoday Small Finance Bank (SSFB) and Equitas Small Finance Bank (ESFB) also revised their interest rates on fixed deposits (FD), effective from March 1, 2023. Interest rates for Suryoday Small Finance Bank in five to 10-year tenures were revised by 75-125 basis points (bps). The bank also revised interest rates on savings accounts up to 200 basis points (bps). The hike by Equitas Small Finance Bank will allow FD customers to earn 8.20 per cent interest on investing less than Rs 2 crore for a tenure of 888 days.
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The RBI last month raised the repo rate by 25 basis points to 6.50 per cent, which was the sixth hike in a row since May 2022, in order to control inflation.
According to the latest data available, India’s retail inflation in January 2023 rose to 6.52 per cent on costly food items and fuel. In December 2022, the Consumer Price Index (CPI)-based inflation had eased to 5.72 per cent. In November 2022, it had fallen to 5.88 per cent. The retail inflation came under the RBI’s 2-6 per cent band in November with 5.88 per cent rate after remaining beyond it for 10 months consecutively.
