Bajaj Finance Hikes Interest on Fixed Deposits- Know About the New Rates

by Aman Khanna Finance

If a prospective investor considers an investment avenue that provides stable returns over a period of time, it is most likely that he shall settle upon fixed deposits. FD is the most preferable option for investment in India.

The fact that Bajaj Finance has increased its FD interest rates recently serves to act as a considerable advantage both for the investors and the company in question. Interest rates for company fixed deposits are higher than the interest rates for bank FDs.

Bajaj Finance offers FD interest rates ranging between 8.10%-8.60%. For senior citizens, the rates are even higher. That is, senior citizens are offered a hike of 0.35% over the regular rate  of interest. Further details on rates of interest are discussed later herein.

Not only that, all fixed deposits here are booked online. Online booking of fixed deposits has the following plus points:

  1. Easy application process.

  2. Convenient online access to the fixed deposit account.

Another added benefit that a prospect can avail while booking a fixed deposit is tax-savings. For this, tax-saver fixed deposits with lock-in periods of five years are preferable. While one can avail tax deductions under Section 80C, he/she can also avail the benefit of the considerably high FD interest rates.

Other reasons why fixed deposits are the most resorted as instruments of investment are as follows:

  • Assured returns:

FD interest rates are least affected by market fluctuations, thus securing the returns.

  • Flexibility of tenure

The choice of the tenure for investment is completely at the discretion of the investor. Also, the tenure for which a fixed deposit is booked determines the FD interest rates that shall be provided.

For instance, Bajaj Finance provides an increased rate of interest on 15-month fixed deposits. These rates are higher by 0.10% on regular fixed deposits. Also, recently, they revised their FD interest rates for deposits ranging from 36-60 months. Now, it offers an interest rate of 8.35% on a time period of 36-60 months to its existing clientele. The interest rates for senior citizens are as high as 8.45%.

New entrants, however, received an annual interest rate of 7.85%. Now they receive a rate of 8.10%.

Customized deposits for certain time periods help the investor maximize his/her returns, and grow the amount invested. Hence, investors are free to choose any investment period between 12 months to 60 months.

  • Prior insight in investment

Not just this, in the light of the above two parameters for considering fixed deposits as investment initiatives; there’s yet another factor that needs attention.

At times, investors might contemplate an estimate of prospective earnings before taking the plunge. FD calculators present online aid to the investors to have the insight they require.

Such online calculators are also provided by financers like Bajaj Finance for investor conveniences. FD calculators benefit the investor in the following ways:

  1. Facilitates investors to check returns with varying tenures and principals.

  2. Enables comparison of two or more fixed deposits.

  3. Accurate results, unlike manual calculations which tend to be inaccurate.

  4. User-friendly interface.

Fixed deposits always score better over stocks and mutual funds, with respect to safety of investment, and stable returns. In times of a financial crunch, fixed deposits come in handy as collaterals to avail a loan.

Term deposits from Bajaj Finance start from amounts as low as Rs. 25,000. Moreover, for renewing these deposits for a fresh tenure, there lies an additional benefit of 0.10% on the FD interest rates.

Finally, one need not worry about the security of his/her principal amount and the rates of interest. The safety on one’s investment in a company fixed deposit also depends on the credit rating of the company. A higher credit rating evidently denotes a higher safety of the investors’ money.

In this regard, Bajaj Finance has a rating of FAAA by CRISIL, and MAAA by ICRA. Both these ratings make it one of the safest financial institutions with regards to FD interest rates and security of principal here.

With such a strong positive at its side, this institution is certainly one to opt for FDs. Also, the interest rates provided are higher too, making it all the more preferable for investments.

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About Aman Khanna Innovator   Finance

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Joined APSense since, March 16th, 2017, From Delhi, India.

Created on Jul 8th 2018 01:03. Viewed 423 times.


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