NBFC raises deposit rates across 12–60 month tenures, with senior citizens now offered up to 8.15%; renewal customers can earn an additional 10 bps
Bajaj Finance has raised interest rates on its fixed deposits (FDs) by 15–40 basis points across various tenures, following the Reserve Bank of India’s decision to increase the policy repo rate by 25 basis points to 5.50 per cent. The revised rates are effective from October 7 and apply to both fresh deposits and renewals.
The move comes as financial institutions adjust their deposit pricing following the RBI’s latest monetary policy decision. Bajaj Finance, one of India’s largest deposit-taking non-banking financial companies (NBFCs), has placed a greater emphasis on longer-duration deposits, offering higher rates to customers willing to lock in their funds for extended periods.
Maximum FD Rate Rises to 7.75% for Regular Depositors
For regular depositors, the interest rate on deposits with a tenure of 31–60 months has been increased by 35 basis points to 7.75 per cent annually from the earlier 7.40 per cent.
Rates for shorter and medium-term deposits have also been revised. Deposits with a tenure of 12–17 months will now earn 6.80 per cent, up from 6.60 per cent, while the rate for 18–30 month deposits has been raised by 15 basis points to 7 per cent from 6.85 per cent.
The revised structure indicates that Bajaj Finance is encouraging customers to opt for longer-term deposits by offering a larger increase in rates at the upper end of its maturity curve.
Senior Citizens Get Up to 8.15%
Senior citizens continue to receive an additional interest-rate benefit over regular depositors. Bajaj Finance has increased the premium for senior citizens to 40 basis points from 35 basis points earlier.
As a result, senior citizens will earn 7.20 per cent on deposits of 12–17 months, compared with 6.95 per cent previously. For 18–30 month deposits, the rate has been increased to 7.40 per cent from 7.20 per cent.
The biggest increase is for 31–60 month deposits, where the interest rate has been raised by 40 basis points to 8.15 per cent from 7.75 per cent.
This makes the longer-tenure category particularly attractive for senior citizens seeking predictable interest income.
Renewal Customers Get an Additional 10 bps
Bajaj Finance has also introduced an additional 10 basis points for customers renewing their maturing deposits.
With this benefit, the effective maximum rate rises to 7.85 per cent for regular depositors and 8.25 per cent for senior citizens on deposits with a tenure of 31–60 months.
The additional incentive could help the NBFC retain its existing deposit base while encouraging customers to roll over maturing investments rather than withdrawing funds or shifting them to competing products.
Cumulative and Regular Interest Payout Options
Depositors have the flexibility to select between cumulative and non-cumulative FD options.
Under cumulative deposits, interest is accumulated during the tenure and paid along with the principal at maturity. Non-cumulative deposits provide periodic interest payouts, with customers able to choose monthly, quarterly, half-yearly or annual payment options.
The choice between these options will largely depend on the depositor’s cash-flow requirements. Investors seeking regular income may prefer periodic payouts, while those focused on building their maturity corpus may find cumulative deposits more suitable.
RBI Rate Hike Changes the Deposit Landscape
The FD rate revision follows the RBI Monetary Policy Committee’s decision to raise the repo rate by 25 basis points to 5.50 per cent from 5.25 per cent and shift its monetary policy stance towards calibrated tightening.
A higher policy rate can gradually influence borrowing costs, lending rates and deposit pricing across the financial system. Banks and NBFCs may reassess their deposit rates as they compete for stable funding, particularly when credit demand remains firm.
For deposit-taking NBFCs, maintaining an adequate and diversified funding base is important because deposits form a part of their overall liability structure. Offering competitive FD rates can help attract retail savings while supporting liquidity and funding requirements.
Bajaj Finance Continues to Expand Its Funding Base
Bajaj Finance, a subsidiary of Bajaj Finserv, had 128 million customers and assets under management of ₹5.85 trillion as of September 2026.
The company’s large customer base gives it access to a significant retail funding opportunity. Increasing FD rates, particularly for longer tenures, can help the company strengthen its deposit franchise and secure relatively stable funding for its lending operations.
The focus on longer-duration deposits also provides greater visibility over the company’s funding profile, although the cost of raising deposits needs to be balanced against the yields generated from its lending portfolio.
What the Higher FD Rates Mean for Depositors
For investors, the latest revision provides an opportunity to lock in higher fixed returns, particularly over three- to five-year periods. However, depositors should assess the complete product structure rather than comparing only the headline interest rate.
Tenure, premature withdrawal rules, tax treatment, payout frequency and the credit profile of the institution are important considerations when choosing an FD.
The higher rate for senior citizens can be particularly relevant for investors who depend on fixed-income products for predictable cash flows.
At the same time, locking money into a longer-tenure deposit can reduce flexibility if interest rates rise further in the future. Investors therefore need to weigh the benefit of securing today's rate against the possibility of obtaining higher rates later.
Market Outlook
Bajaj Finance’s FD rate increase highlights the early impact of a higher interest-rate environment on the retail deposit market. With the RBI repo rate now at 5.50 per cent and the policy stance shifting towards calibrated tightening, competition for stable deposits could remain firm.
For NBFCs, the key issue will be maintaining a balance between funding costs and lending yields. A sustained rise in deposit rates could increase the cost of funds, while strong loan growth could help absorb the impact if lending yields remain supportive.
For investors, the latest move reinforces the importance of comparing fixed-income opportunities across banks, NBFCs and other instruments on the basis of return, liquidity, taxation and risk rather than headline rates alone. Longer-tenure FDs may appeal to investors seeking certainty, while those expecting further changes in interest rates may prefer to stagger maturities instead of locking the entire investment corpus at once.