Banks are offering low interest rates. On the other hand, debt mutual funds generated 4% to 5% returns in the last year. If you are looking for investment into fixed deposits, such investment options might provide low returns. Many of us would still believe that Investing in small finance banks FDs is riskier. Another alternative option is to invest in Bajaj Finance fixed deposits that offer up to 7.05% interest rates. In this article we would review Bajaj Finance Fixed Deposits in 2022, their features, interest rates, pre-mature withdrawal rules and conclude whether it is safe to invest or not.
Also Read: 7.15% RBI Floating Rate Saving Bonds 2022
About Bajaj Finance Limited
Bajaj Finance is deposit taking Non Banking Finance Corporation (NBFC) registered with RBI. It is engaged in the business of lending and acceptance of deposits. Bajaj Finance has a diversified portfolio of lending across retail, SMEs and commercial customers with good presence in urban and rural areas.
Features and Benefits of Bajaj Finance FD
Here are the major features and benefits in this FD scheme.
- Bajaj Finance FDs are offered for tenure of 12 months to 60 months.
- One can open these FDS with minimum of Rs 25,000.
- One can start investing as low as Rs 5,000 per month in the systematic deposit plan (SDP).
- Latest interest rate on Bajaj Finance FD is up to 6.8%.
- Bajaj Finance FD interest rates for Senior Citizens would be 0.25% extra compared to regular investors. Means they would get 7.05% interest rate.
- These FDs are offered for cumulative and non cumulative option.
- Under the cumulative FD scheme, interest along with principal would be paid on maturity.
- Under a non cumulative option, interest is paid either monthly, quarterly, half yearly or yearly depending on the option chosen by the investor.
- These FDs have a high credit rating from CRISIL and ICRA.
- Investors can invest through online or offline through any of the 1,000 Bajaj Finance branches across India.
- Special FD rates for existing customers and group employees.
Who is eligible to invest in Bajaj Finance FD?
Following individuals can invest in these FDs.
- Resident Indians
- Persons of Indian Origin
- Non Resident Indians (NRIs) are also eligible to invest
- Sole Proprietorships
- Partnership firms
- HUFs
- Clubs
- Associations
- Societies
- Family trusts
Bajaj Finance FD Rates 2022
Here are the interest rates of these FD schemes for cumulative interest payouts and monthly/yearly payout.
I) Bajaj Finance Fixed Deposit interest rates 2022 – Cumulative Option (Interest paid on maturity)
| Bajaj Finance FD Interest Rates in 2022 (Cumulative) |
||||
|---|---|---|---|---|
| Months | Interest Rate | Minimum Investment | Interest | Maturity Amount |
| 12 | 5.65% | 25,000 | 1,413 | 26,413 |
| 24 | 6.40% | 25,000 | 3,302 | 28,302 |
| 36 | 6.80% | 25,000 | 5,455 | 30,455 |
| 48 | 6.80% | 25,000 | 7,526 | 32,526 |
| 60 | 6.80% | 25,000 | 9,737 | 34,737 |
II) Bajaj Finance FD rates 2022 – Non Cumulative Option – Interest paid monthly / yearly
| Bajaj Finance FD Rates – 2022 (Monthly interest payout) |
|||
|---|---|---|---|
| Months | Interest Rate | Minimum Investment | Monthly payout |
| 12 | 5.51% | 25,000 | 115 |
| 24 | 6.22% | 25,000 | 130 |
| 36 | 6.60% | 25,000 | 138 |
| 48 | 6.60% | 25,000 | 138 |
| 60 | 6.60% | 25,000 | 138 |
| Bajaj Finance FD Rates – 2022 (Yearly interest payout) |
|||
|---|---|---|---|
| Months | Interest Rate | Minimum Investment | Yearly payout |
| 12 | 5.51% | 25,000 | 1,413 |
| 24 | 6.22% | 25,000 | 1,600 |
| 36 | 6.60% | 25,000 | 1,700 |
| 48 | 6.60% | 25,000 | 1,700 |
| 60 | 6.60% | 25,000 | 1,700 |
What are Premature withdrawal rules in Bajaj Finance FD?
One can do premature withdrawal from these FDs, however they come with several terms and conditions.
1) No withdrawal within 3 months
2) Withdrawal between 3 to 6 months – No interest rate would be paid
3) Withdrawal after 6 months – If FD investor wants to withdraw after 6 months, interest payable would be 2% lower than the interest rate applicable for the fixed deposit.
Is interest received from Bajaj FD taxable?
Interest received on these FDs are taxed like any other fixed deposit. Investors need to declare interest income under “income from other sources” and pay income tax as per income tax applicable to them.
Why to invest in Bajaj Finance FD?
Here are some reasons to invest in these fixed deposits.
1) Bajaj Finance offers good interest rates up to 6.8% p.a. which are higher compared to bank fixed deposits.
2) Investors can invest a small amount of Rs 25,000 to get regular fixed income.
3) Bajaj Finance FDs offer flexible payment options i.e. interest payable monthly, quarterly, half yearly, yearly and on maturity. If someone is looking for monthly fixed income, they can opt for monthly interest payout.
4) Bajaj Finance FD ratings are FAAA/Stable by CRISIL and MAAA/Stable by ICRA. These indicate high level of safety of the FDs.
5) These FDs are offered for 1 year to 5 years tenure. If you do not need money in the short term, you can opt up to 5 years FD and lock-in higher interest rates.
6) These FDs are offered both online and offline. Online FDs make life easier.
7) It offers 0.25% additional interest rates for senior citizens.
8) It offers special interest rates for group employees and existing customers.
9) Bajaj Finance is consistent profit making company, hence in future there may not be delay payment of interest and repayment of capital.
Risk Factors in Bajaj Finance FD
Here are some of the negative or risk factors in these FDs.
1) Investing in NBFC company FDs is riskier. Check what happened for DHFL finance FD, SREI FD etc., Still FD investors are struggling to get their FD money.
2) Company FD schemes are unsecured in nature. If the company gets into financial crisis / or shutdown for some reason, FD investors would get normal preference in repayment of their FD investment.
3) Premature withdrawal rules make it less attractive.
How to invest in Bajaj finance FD Online?
- Investors need to visit Bajaj Finance FD Online form
- Fill the details
- Make the payment
- FD is processed and a receipt would be mailed to your registered mail ID.
You may like: TNPFC FD 2022 Offers 10.46% Yield – Is it safe to invest in this FD?
Is Bajaj Finance FD safe for investment?
Bajaj Finance Limited is a growing company. It is generating consistent profits. Its FDs have good credit rating from CRISIL and ICRA. While it offers lower interest rates compared to other NBFC companies, these rates are still good compared to bank FDs. However, these are unsecured in nature. Investors should consider all these pointers before investing in Bajaj Finance Fixed Deposits in 2022.
Have you liked our tips and analysis? Then share it on your Facebook, Twitter, Telegram and other social media, which might be useful to your friends too.
- Kosamattam Finance NCD – Nov-2024 Issue – Details and Review - November 24, 2024
- Best Large Cap Mutual Funds to Invest in 2025 - November 23, 2024
- How to Balance Risk and Reward in Your Investment Portfolio - November 19, 2024
Hi Suresh Sir,
What are the alternative options for FDs. Can we invest in conservative hybrid mutual funds for 7-8 % constant returns for a period of 1-2 years? Please suggest ideal funds to invest to fulfill this requirement.
Currently debt funds are riskier as there interest rates hikes being done by RBI. You need to hold for few months.