Bajaj Finance has raised fixed deposit (FD) interest rates by up to 30 basis points. The revised rates apply to FDs up to Rs 5 lakh and will be effective from October 7, 2022, Bajaj Finance said in a press release.
The new rates will apply to both new deposits and renewals of accounts payable. Bajaj Finance will offer 7.5% per annum for 44 months for citizens below 60 years, while senior citizens can earn up to 7.75% per annum on special FDs.
According to a Bajaj Finance press release, “With the online FD process, investors can book FDs within minutes and can reap the benefits of lucrative interest rates. Bajaj Finance Fixed Deposit has the highest stability rating with CRISIL AAA/STABLE and [ICRA]AAA(Stable) ratings and offers one of the safest investment options for investors.”
On September 30, 2022, RBI hiked the repo rate by 0.5%; this is the fourth increase in the repo rate in a row. This can benefit fixed deposit investors who want to generate higher returns than inflation.
While the rate hike is good news for depositors, it also presents a number of challenges. No one knows where 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 a higher rate FD, you will lose out on already rising rates, and if you book a long-term FD after only a few hikes, you may lose out if rates continue to rise in the future.