Fixed deposit rates increased by up to 60 basis points by these two major non-bank lenders! Is it time to invest?

Recently, interest rates on fixed deposits (FDs) for a range of maturity periods were increased by up to 60 basis points (bps) by two non-bank lenders, Bajaj Finance and Shriram Finance.

Rates of Bajaj Finance FDs
According to a press statement, the non-banking financing firm increased the interest rates on its fixed-rate debt instruments (FDs) for elderly people by as much as 60 basis points for terms ranging from 25 to 35 months and 40 basis points for terms ranging from 18 to 24 months.

The rate increases will take effect on April 3, 2024.

Rates for ordinary customers have risen by as much as 45 basis points for tenures between 25 and 35 months, 40 basis points for tenures between 18 and 22 months, and 35 basis points for tenures between 30 and 33 months. Bajaj Finance is a subsidiary of Bajaj Finserv.

According to the firm, non-senior persons may benefit from rates as high as 8.6% while elderly citizens can continue to get FD prices of up to 8.85% if they book online within the 42-month period.

Sachin Sikka, Head of Fixed Deposits and Investments at Bajaj Finance, said, “Our enhanced rates across several investment buckets present an attractive proposition for investors seeking stability.”

FD rates at Shriram Finance
Interest rates on the NBFC’s FDs have increased by 5 basis points, 20 basis points, and 9.40 percent. The cumulative FD rates would vary from 7.85% to 10.50% for all tenures.

When a cumulative fixed deposit matures, investors get both the principle amount and the compound interest.

An additional 0.50% interest is available to senior people who were 60 years of age or older at the time of deposit or renewal, and an additional 0.10% interest is available to female investors. On every renewal, the business will provide an extra 0.25% of interest annually.

According to the NBFC, the updated rates take effect on April 9, 2024.

Seniors who have 50 or 60 months remaining on their fixed deposit will get 9.30% interest. 8.80% will be earned by regular people within the same period.

Senior women investors may get an annual interest rate of 9.40% on their FDs with terms between 50 and 60 months. For women, there is an extra 10 basis points on the interest rate.

The organization offers interest rates on non-cumulative fixed deposits that range from 7.85% to 8.80% annually for terms of 12 months to 60 months.

Interest is paid on a regular basis, such as monthly, quarterly, half-yearly, or annually, under non-cumulative FDs.