Bajaj Finance offering fixed deposit facilities to investors. The best aspect of such fixed deposits is that they offer a significant degree of stability while giving assured returns. In addition, Bajaj Finance Fixed Deposit Interest Rate is also higher than what the public and private sector banks offer for similar tenure. Let us discuss the Bajaj Finance Fixed Deposits in detail.
Bajaj Finance Fixed Deposits – Features
The primary characteristics of the Bajaj Finance Fixed Deposits are as follows:
- Flexibility – Investors are free to invest for flexible tenures ranging between 12 and 60 months depending on their financial requirements. You can either opt either for a cumulative or a non-cumulative fixed deposit as per your needs.
- Assured Returns – Since FDs are not linked with the market, there are no questions of any market fluctuations thereby ensuring that investors get assured returns.
- Stability–Bajaj Finance Fixed Deposits have been rated credible with stable ratings such as ICRA’s MAAA and CRISIL’s FAAA. Hence, there is no element of risk for investors..
- Good returns – Bajaj Finance FD rates are higher than the rates offered by any private and public sector bank. Therefore, investors get a higher return on their investments. In addition, senior citizens are eligible to receive an additional 0.35% interest over and above the regular rate of interest offered to the general customers.
- Invest small amounts – Bajaj Finance allows investors to invest as low as Rs 25,000 and start an FD account. It implies that you need not wait to accumulate a large corpus for investment.
- Easy to apply – Bajaj Finance offers customer-friendly online application and account management facilities whereby investors can apply for fixed deposits online.. It enables you to keep track of your investments easily.
- Pan–India presence – Bajaj Finance has branches in more than 200 cities across India.
Let us now take a look at the interest rate offered on the Bajaj Finance Fixed Deposits.
Bajaj Finance Fixed Deposit – Interest Rate
The Bajaj Finance Fixed Deposit Interest rates are among the best in the industry. The rates vary for cumulative and non-cumulative deposits. The below-shared table explains it all. These interest rates are with effect from 17 October 2018.
|Tenure of Fixed Deposit||Cumulative Deposits||Non-cumulative Deposits|
|12 to 23 months||8.00%||7.72% to 8.00%|
|24 to 35 months||8.15%||7.88% to 8.15%|
|36 to 60 months||8.75%||8.42% to 8.75%|
Bajaj Finance also offers a special tenure scheme wherein the tenure is fixed at 15 months, and the minimum amount of deposit is ₹ 100,000. The rate of interest is 8.05% for the cumulative FD and ranges from 7.82% to 8.05% for the non-cumulative FD.
Also, the following categories of customers get an additional benefit as described here under.
- Senior Citizens – 0.35% more than the rates applicable in each category.
- Existing Customers & Bajaj Group Employees – Both existing deposit and loan customers along with Bajaj Group employees are eligible for 0.25% additional interest over and above the rates mentioned in the table above.
- Renewal of FDs– Renewing the Fixed Deposit entitles you to receive 0.25% more than the corresponding interest rate.
Types of FD Schemes: Cumulative FD Vs Non-cumulative FD
If you look at the interest rate table, you will find the bifurcation of deposits into the cumulative and non-cumulative category. Let us understand the significance.
Cumulative FD: These are FDs wherein the payment of interest happens at the time of actual maturity of the deposit. In other words, the interest, instead of being paid out to the customer after fixed intervals, keeps on compounding and is paid out to the investor all at once when the FD matures.
Non-cumulativ FD: These are FDs wherein you get the accumulated interest at monthly, quarterly, half-yearly or yearly basis. This revised interest table will make it simple for you to understand the concept.
|Non-Cumulative FDs – Interest payable at prescribed intervals|
|Tenure in months||Monthly||Quarterly||Half-yearly||Yearly|
|12 to 23 months||7.72%||7.77%||7.85%||8.00%|
|24 to 35 months||7.88%||7.93%||8.00%||8.15%|
|36 to 60 months||8.42%||8.48%||8.57%||8.75%|
|15 month FD||7.77%||7.82%||7.89%||8.05%|
Let us now see the advantages of having a cumulative FD over the non-cumulative FD.
We shall explain the difference using a concrete example. Let’s assume you have a fixed deposit of ₹ 100,000 for 60 months. This table will illustrate the difference graphically.
|Particulars||Cumulative FD||Non-cumulative FD|
|Tenure||60 months||60 months with interest payable on a monthly basis|
|Rate of Interest||8.75%||8.42%|
|Interest earned||52,106||42,100 with payment of ₹ 701.67 per month|
Investors who would like to receive the interest on a monthly, quarterly, half-yearly or yearly basis to maintain a regular cash flow in their account can select the non-cumulative FD. On the contrary, those who wish to receive the entire corpus all at once can opt for the cumulative FD.
Bajaj Finance Fixed Deposits – Eligibility Criteria
The eligibility criteria for opening a Bajaj Finance Fixed Deposit are as follows.
- The minimum deposit is ₹ 25,000
- Individual depositors – Resident Indian citizens
- Non-Individual depositors can include
- Hindu Undivided Family
- Sole Proprietorship concerns
- Partnership firms
- Companies including a group of companies
- Clubs, societies, and associations
Both individuals and non-individuals have to satisfy the KYC (Know Your Customer) norms by providing documents that prove the identity, nationality, and address of the depositor. Senior citizens should provide proof of age to get the benefit of the additional Bajaj finance FD rates.
How to open a Bajaj Finance FD Account Online
Bajaj Finance process to open FD account online is very simple. Follow the steps enumerated below to open your FD.
- Visit the official website of Bajaj Finance and fill the online application form. Remit the money by RTGS/NEFT or issue a cheque for the same.
- On completing the application form, click on the “Save as PDF” option. The company representative will contact you for completion of the formalities.
- Print and sign the application form, attach the photos, and keep your KYC documents ready
- Submit the documents along with the cheque to the Bajaj representative.
Bottom line: Opening a Bajaj Finance FD online is an easy task. All you have to do is choose the type of FD scheme you want to invest in, get clarity on your investment budget and tenor. Once that’s done, fill the online application form and attach the documents before submitting the form.