Bajaj Finance fixed deposits are one of the most popular fixed deposits due to the high rate of interest. Bajaj Finance FD rates for senior citizens is 0.25% higher than regular FD rates. In this article we have covered the features and benefits of Bajaj Finance FD.
Bajaj Finance Limited is a Non Banking Finance Company (NBFC) and is a subsidiary of Bajaj Finserv Limited. Incorporated in 1987, Bajaj Finance Limited is the most diverse non-bank financing company. The company deals in consumer finance, SME finance, commercial lending, rural lending, mortgage lending and also investment products.
On January 31st 2019, the company was assigned a long term issuer credit rating of BBB- and short term issuer credit rating of A-3 by S&P Global Ratings. They are the top consumer lifestyle products, electronics and digital products and personal loans lender in India. Also, Their SME business is growing above the industry average. CRISIL has rated their fixed deposits via FAAA, the highest degree of safety.
The company has its headquarters in Pune. Also, it has 300 consumer branches and 500 rural locations with 33,000+ distribution points. Furthermore, the company has two wholly owned subsidiaries, Bajaj Housing Finance Limited and Bajaj Financial Securities Limited.
The parent company, Bajaj Finserv Limited, is a diversified financial services group with a pan-India presence. The company products include lending services, general insurance, health insurance, life insurance, fixed deposits, mutual funds and life insurance pensions
Following are the Bajaj Finance fixed deposit rates
|Tenure||On Maturity||Monthly||Quarterly||Half Yearly||Annual|
Interest on Bajaj Finance FDs is paid out to investors based on the scheme’s interest payment frequency.
Maturity – The interest will be paid upon maturity, along with the principal amount. Also, the interest will be compounded annually. The maturity amount will be taxable in the hands of investors.
Monthly – The interest will be paid on the last day of the subsequent month from the FD investment.
Quarterly – The interest is paid on June 30th, September 30th, December 31st, and March 31st.
Half yearly – The interest payment is made on September 30th and March 31st.
Annually – The interest payment is made on March 31st.
Senior citizens fixed deposit interest rate is higher for Bajaj Finserv Fixed Deposits. The interest on FDs is taxable, and if the interest income exceeds INR 5,000, then it attracts TDS However, if form 15G or 15H is submitted, no TDS will be deducted.
Bajaj Finance Fixed Deposit account is one of the best investment options available for investors looking at higher returns than a bank saving account. Bajaj finance fixed deposit scheme offers guaranteed income at a fixed interest rate.
Following are the key features of Bajaj Finance Fixed deposit account:
Following are the benefits of Bajaj Finance FDs:
Bajaj Finance offers Systematic Deposit Plan (SDP). SDP is a monthly investment option that enables the depositors to invest small monthly deposits. The maturity period for each deposit is for a minimum of 12 months to a maximum of 60 months. Also, the interest rate prevailing on the date of deposit will be applicable to that deposit. Furthermore, each deposit under the SDP is treated as a separate fixed deposit.
Bajaj Finance is the only Indian NBFC with a ‘BBB’ international rating by S&P Global. Bajaj Finance FDs are one of the safest investment options for investors. Also, Bajaj Finance FDs have the highest stability ratings with CRISIL’s FAAA and ICRA’s MAAA. Hence, indicating the safety of the investments.
The tenure of the FDs offered by Bajaj Finance range between 12 months to 60 months. Therefore, investors can choose a tenure that best suits their financial needs.
Depositors can open Bajaj Finance FD accounts online. The online FD opening process is easy and saves time for the depositors. The completely online process avoids the hassle of handling documents or waiting in queues.
Bajaj Finance offers the facility to avail loan against FD in case of emergencies. And, one can also apply for the loan online, without having to visit the branch. However, one can only avail loan up to 75% of their deposit value.
Bajaj Finance provides the facility to invest in FDs via debit cards. However, please note that this is only available in select locations.
Depositors can choose to invest in multiple deposits through a single cheque payment. Also, they can opt for different tenures and interest payment frequencies for each of their deposits. Additionally, in emergencies, one can withdraw from a single deposit, without having to break all the other deposits.
Bajaj Finance offers fixed deposit schemes for Non-resident Indians (NRIs), Overseas Citizen of India (OCI) and Person of Indian Origin (PIO). With an NRO account, depositors can also choose tenures between 12 months to 36 months. Furthermore, NRI FD is a great option with attractive interest rates.
|Bank Name||Interest Rate||Tenure||Minimum Deposit Amount|
|Bajaj Finance Ltd.||6.79% – 7.35%||1 – 5 yrs||INR 25,000|
|SBI Bank||2.90% – 6.20%||1 – 10 yrs||INR 1,000|
|ICICI Bank||2.50% – 6.30%||1 – 10 yrs||INR 10,000|
|Axis Bank||2.75% – 6.15%||1 – 10 yrs||INR 5,000|
|HDFC Bank||2.75% – 6.25%||1 – 10 yrs||INR 5,000|
|Bank of Baroda||2.90% – 6.30%||1 – 10 yrs||INR 1,000|
|IDFC Bank||3.00% – 7.50%||1 – 10 yrs||INR 10,000|
|Kotak Mahindra Bank||2.50% – 4.50%||1 – 10 yrs||INR 5,000|
|Canara Bank||5.30% – 5.40%||1 – 10 yrs||INR 1,000|
One can invest in Bajaj Finance Fixed Deposit through online and offline modes. To invest in Bajaj Finance FD offline, one can visit the nearest branch of Bajaj Finance office and fill the FD form.
To invest in Bajaj Finance FD online, one can visit the Bajaj Finance website or can download their official app and fill the online application. By investing online one can save the time and effort of physically visiting a branch of Bajaj Finance Limited.
However, to invest in Bajaj Finance FD, one has to be eligible. Following is the eligibility criteria:
To invest in Bajaj Finance FD, following are the documents required:
Yes, one can withdraw their FD investment before maturity. There is a lock-in period of 3 months. However, post the lock in period the investor can withdraw their FD investment. However, the investor will receive a lesser interest rate than the original one. Investors can instead take a loan against fixed deposit investment. Bajaj Finance gives a loan against the fixed deposit for 75% of the FD value.
Loans such as loans against property (home loan), business loan, an education loan, etc., can be taken against an FD. The loan interest rate varies based on the bank and type of loan. One can always calculate their loan EMI using the loan EMI calculator. The loan EMI calculator works as a home loan calculator, personal loan EMI calculator and car loan calculator. The investor can also use this EMI calculator in multiple scenarios by changing the car loan interest rate, personal loan interest rate, and home loan interest rate.
Bajaj Finance Fixed Deposit is for those investors who want to earn a guaranteed income on their investment. Also, investors who want to invest small amounts regularly can look at investing in Bajaj Finance FD. This is because the company is offering FDs in Systematic Deposit Plan (SDP). Investors can now invest regularly in small amounts in FDs. Each deposit is treated as an FD.
Bajaj Finance has different interest payout options, and one of them is the monthly interest payout option. In the monthly interest payout option, the investor will earn interest monthly on the last day of the month. However, the interest payments will be made from the subsequent month of investment. For example, if the investor invests in Bajaj Finance FD on January 28th, then the interest payment will be made on February 28th, March 31st etc.
The minimum amount of deposit in a Bajaj Finance FD is INR 25,000. There is no limit on the maximum amount of deposit. The tenure for Bajaj Finance FD ranges between 12 months and 60 months.
Income from a Bajaj Finance fixed deposit is taxable as per the income tax slab rates of individuals. Additionally, there is a TDS of 7.5%, if the interest income exceeds INR 5,000. If the PAN isn’t provided, then the TDS rate is 20%.
Bajaj Finance Fixed Deposit doesn’t qualify for tax exemption under Section 80C of the Income Tax Act. Hence one cannot claim a tax exemption on it.
Yes, FD interest attracts TDS. If the interest income exceeds INR 5,000, only then it attracts a TDS of 7.5%. If the investor didn’t submit a PAN, then the TDS deducted will be 20%. For NRIs, the TDS rate will be 30% plus a surcharge.
Taxation on mutual funds is a complex topic. Taxes paid on your mutual fund investments vastly depend on factors such as what kind of funds you have invested in, the duration of your investment, which income tax slab you belong to and so on.