Bajaj Finance raises interest rates on fixed deposits by up to 10 bps

The revised interest rates by Bajaj Finance will be applicable to fresh deposits as well as renewals of maturing deposits

Consumer financier Bajaj Finance has raised interest rates by up to 10 basis points on its fixed deposits (up to Rs 5 crore) for tenor between 36 months to 60 months, effective May 10. The revised interest rates will be applicable to fresh deposits as well as renewals of maturing deposits. Accordingly, deposits between 36 to 60 months will earn a return of 7 per cent.

Deposits between 12 – 23 months will continue to fetch interest of 5.75 per cent, while deposits between 24 – 35 months will earn an interest rate of 6.40 per cent, as was the case earlier. For senior citizens, the interest rate will be 25 basis points higher in each category.

The lender has come up with special interest rates for its fixed deposits, wherein the depositor can earn 7.20 per cent interest rate for a tenor of 44 months. Senior citizens can earn 7.45 per cent for the same tenor.

The hike in interest rate on deposits comes after the monetary policy committee (MPC) hiked benchmark interest rate (repo rate) by 40 basis points to 4.40 per cent, in an off-cycle meeting to tame the rising headline inflation.

A bunch of banks, including Bandhan Bank, Kotak Mahindra Bank, Jana Small Finance Bank, Bank of Baroda, ICICI Bank, and Punjab National Bank have also announced deposit rate hikes across multiple tenor baskets for retail customers, following MPC’s decision.