New Delhi. If you want to invest in fixed deposits (FD), then there is good news for you. Bajaj Finance, one of the top rated finance companies in the country, has increased interest rates on FDs by 40 basis points (0.40 per cent). Now Bajaj Finance will get 7% interest on FD of three to five years duration. Till now, 6.6 percent interest was being paid on this period. Senior citizens will be given 7.25 percent interest for this period. The RBI on Friday decided not to change the repo rates. But RBI announced increase in CRR (Cash Reserve Ratio). It was speculated from RBI’s announcement that FD interest rates may increase.
Rate of interest on FD of three years
Looking at other NBFC companies like Bajaj Finance, Mahindra Finance is offering 6.75 per cent on 3-year FDs and 6.25 per cent interest rates on HDFC and ICICI Home Finance. SBI, the country’s largest bank, is offering 5.3 percent interest rate on three-year deposits. Bajaj Finance has also raised FD interest rates for the first time since October 2018. At that time it was offering 8.75 percent interest rate on 3-5 years deposit.
7 times reduced interest rates
Since October 2018, Bajaj Finance has cut the FD rates of 3-5 years 7 times. After a reduction of 7 times, the company was now offering 6.6 percent interest rate on this period. Top-rated company fixed deposits have been more popular than bank deposits amid falling interest rates. Meanwhile, experts believe that interest rates are unlikely to rise.
Repo rate remains 4 percent
On 5 February, RBI announced that they would not change their key rates. The RBI has maintained the repo rate at 4 per cent and the reverse repo rate at 3.35 per cent. RBI also did not change its MSF and bank rate. It will remain at 4.25 per cent.
Get more interest here
If you want to earn more interest on FD, then invest in small finance. Many such small banks are also offering higher interest in Bajaj Finance. Jan Small Finance Bank offers 7.25% interest rate to the general public on FDs with a maturity period of 3 years or less than 5 years. At the same time, for senior citizens, the interest is 7.75% on this period.
North East Small Finance FD
In this bank, senior citizens get 8% interest on maturity of 730 days to less than 1095 days. 7.5 per cent interest is being paid to general citizens over this period. For general customers, the FD rate in Sunrise Bank ranges from 4 to 7.50 percent. The bank pays the highest interest on 5 years FD. You will get 7.50 percent interest on such a period of investment. Sunrise Bank FD interest rate for senior citizens is 4.5 percent to 8 percent. Senior citizens will be offered an interest rate of 8% on FDs maturing in 5 years.
