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Bajaj Finance Fixed Deposit : FD Rates, Features and Benefits

bajaj finance fd

Introduction

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.

About Bajaj Finance Ltd

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

Bajaj Finance FD Interest Rates

Following are the Bajaj Finance fixed deposit rates

TenureOn MaturityMonthlyQuarterlyHalf YearlyAnnual
12-23 months7%6.79%6.82%6.88%7%
24-35 months7.10%6.88%6.92%6.98%7.10%
36-60 months7.20%6.97%7.01%7.08%7.20%

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.

Features of Bajaj Finance Fixed Deposit Rates

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:

  • Tenure: The tenure ranges between 12 months to 60 months
  • Minimum Deposit Amount: The minimum amount to open an FD with Bajaj Finance is INR 25,000.
  • Maximum Amount: No limit
  • Bajaj Finance FD Interest Rate: Bajaj Finance FD offers interest rates in the range of 6.90% p.a to 7.10% p.a.
  • Preferential Interest Rates: Bajaj Finance offers preferential interest rates to senior citizens. The rates range between 7.15% p.a to 7.35% p.a.
  • Safety: Bajaj Finance is a Housing Finance Company (HFC). HFC deposits are not covered under insurance. However, the deposits of the HFC’s are rated by the rating agencies. The ratings give a good understanding of the savings. For example, AAA or AA rated deposits are considered to have the highest safety.
  • Loan against FD: Bajaj Finance offers loan up to 75% of the FD value. 
  • Premature Withdrawal: In emergencies, depositors can withdraw their deposit amount prematurely. However, only after the initial lock in period of three months.
  • Nomination Facility: Bajaj Finance allows depositors to nominate beneficiaries for the deposits.
  • Auto-Renewal: Bajaj Finance provides the auto-renewal facility of the FD account.
  • Convenience: Depositors can open Bajaj Finance FD investment online at any time at their convenience. Also, depositors can fill the online application form available on the website to start their FD investments.

Benefits of Bajaj Finance FD Rates

Following are the benefits of Bajaj Finance FDs:

Systematic Deposit Plan (SDP)

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.

High stability and good credibility

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.

Flexible tenures

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.

Online FD opening

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.

Online loan against FD

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.

Invest using a debit card

Bajaj Finance provides the facility to invest in FDs via debit cards. However, please note that this is only available in select locations.

Multi deposit facility

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.

NRI FD

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. 

Comparison of interest on FDs offered by Financial Institutions

Bank NameInterest RateTenureMinimum Deposit Amount
Bajaj Finance Ltd.6.79% – 7.35%1 – 5 yrsINR 25,000
SBI Bank2.90% – 6.20%1 – 10 yrsINR 1,000
ICICI Bank2.50% – 6.30%1 – 10 yrsINR 10,000
Axis Bank2.75% – 6.15%1 – 10 yrsINR 5,000
HDFC Bank2.75% – 6.25%1 – 10 yrsINR 5,000
Bank of Baroda2.90% – 6.30%1 – 10 yrsINR 1,000
IDFC Bank3.00% – 7.50%1 – 10 yrsINR 10,000
Kotak Mahindra Bank2.50% – 4.50%1 – 10 yrsINR 5,000
Canara Bank5.30% – 5.40%1 – 10 yrsINR 1,000

How can I invest in Bajaj Finance Fixed Deposit?

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:

  • Resident Indian citizens
  • Hindu Undivided Family (HUF)
  • Sole proprietorship
  • Partnership firms

What are the documents required to apply for Bajaj Finance Fixed Deposit?

To invest in Bajaj Finance FD, following are the documents required:

  • Latest passport size photographs
  • Pan Card
  • Aadhar Card
  • Voter ID or Driving Licence or Passport
  • Electricity Bill or telephone bill or bank statement
  • Cheque

Can I withdraw the fixed deposit before maturity?

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. 

Who should invest in Bajaj Finance Fixed Deposit?

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.

Can I earn monthly income on Bajaj Finance 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.

Frequently Asked Questions

What are the minimum and maximum amounts for Bajaj Finance FD?

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.

Is FD income taxable?

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%.

Can I claim tax exemption on FD interest?

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.

Is TDS deducted on FD Interest?

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.

Published on October 29, 2020