Due to recent RBI repo rate cut, many banks have started reducing FD interest rates. Banks are currently offering 4% to 6% interest rates. Bajaj Finserv has a good credit rating and offers highest interest rates where one can get yield up to 7.85%. Bajaj Finserv Fixed Deposit rates are far higher compared to Bank FDs. In this article we would provide Bajaj Finserv FD Scheme details in 2020, its FD interest rates and would conclude whether it is safe to invest in such FD schemes or not.
Also Read: Which are the best Monthly Income Plans?
About Bajaj Finserv Limited
Bajaj Finserv Ltd, a part of Bajaj Holdings & Investments Limited, is an Indian financial services company focused on lending, asset management, wealth management and insurance.
Bajaj Finserv Fixed Deposit Scheme 2020 Details
1) Bajaj Finserv is offering FDs for 12 months to 60 months tenure.
2) This FD scheme has two options i.e. cumulative and non cumulative. In cumulative option, the interest would be paid on maturity. In non cumulative option, interest would be paid monthly, quarterly, half-yearly and yearly based on the option chosen by you while opening the FD scheme.
3) The minimum deposit amount is Rs Rs 25,000.
4) Interest rates are ranging between 7.35% to 7.6% for general category.
5) Senior Citizens would get 0.25% higher interest rates compared to general category. Means they would get up to 7.85%, depending on the tenure chosen by them.
6) Bajaj Finserv employees and customers would get 0.1% higher interest rates.
7) These interest rates are effective from 5th May, 2020.
8) One can open Bajaj Finserv Fixed Deposit Online and renew them online. Renewal of FDs online would get 0.1% higher interest rates compared to new FDs being opened.
What are the Bajaj Finserv Fixed Deposit Rates in 2020?
It offers 1 to 5 years tenure FD scheme (12 months to 60 months) where one would get interest rates up to 7.85%. Here are the details of interest rates of this FD scheme for general category. Bajaj Finance FD rates for Senior Citizens would be 0.25% extra compared to others and Bajaj Finserv employees and existing customers would get 0.1% extra.
Who is eligible to open a Bajaj Finance Fixed Deposit Scheme?
The following are eligible to open this FD.
1) Resident Indian citizen
2) Hindu Undivided Family (HUF)
3) Sole proprietorships
4) Partnership firms
5) Companies including group companies
6) Clubs, associations, and societies
7) Family trusts
How to Open Bajaj Finserv Fixed Deposit Online in 2020?
You can visit this link, fill the form and open the FD online.
What documents are required to open Bajaj Finance Fixed Deposit Scheme?
Following documents are required to open FD scheme.
1) Recent Passport size photograph
2) VID (Virtual Identification Number) / Aadhaar Card / Proof of Application for Enrolment of Aadhaar
2) Pan card
3) Form 60 + any 1 of the below mentioned Officially valid document:
Valid driving license
Voter’s ID card
NREGA job card
Letter containing name and address issued by the National Population register
Why to invest in this FD scheme?
Here are some positive factors.
1) Bajaj Finserve is part of Bajaj Holdings and is trusted brand.
2) You can invest in this FD scheme with a minimum of Rs 25,000 and get higher interest rates up to 7.6% for regular investors and up to 7.85% for Senior Citizens.
3) This FD has a good credit rating of FAAA/Stable from Crisil and MAAA/Stable by ICRA, which indicates the highest safety of the investment.
4) You can open this FD online and renew it online.
Why NOT to invest in this FD scheme?
Here are some negative points.
1) NBFC sector is undergoing a crisis now and your investment could high risk.
2) Corporate FDs does not offer any security. In case of company gets windup for some reason, FD investors would get preference like any other creditors and repayment would happen in normal process. There would not be any preference given to FD investors.
3) Premature withdrawal rules make it unattractive.
Some of the FAQs about this FD Scheme
1) How can I calculate the interest amount?
You can visit Bajaj Finserv Fixed Deposit calculator link https://www.bajajfinserv.in/fixed-deposit-calculators which can help you to know the interest amount. Based on the option and tenure chosen, the interest amount would differ.
2) What is Bajaj Finserv Fixed Deposit Rating?
If you are thinking “is Bajaj Finserv safe for FD”, you need to check the FD credit rating of the company. Bajaj Finance Fixed Deposit is one and only NBFC in India that has an international rating of ‘BBB’ from S&P Global. Crisil have rated these fixed deposits as “FAAA/Stable Rating” and ICRA as “MAAA (Stable) rating”, which indicates the highest degree of safety for the payment of interest and repayment of capital.
3) How Interest on these FDs are taxable?
Bajaj Finserv would deduct TDS on interest exceeding Rs 5,000 per annum. However, one need to calculate total interest received and pay income tax based on the income tax slab applicable to them in that year. E.g. if you are in 20% tax slab, you need to pay 20% of the interest received as tax on these FDs.
4) Can I take a premature withdrawal of my FD?
One can take a premature withdrawal only after 3 months from the date of deposit or from the renewal of deposit. If you wish to break the FD between 3 to 6 months after opening FD, no interest would be paid to you. If you wish to break FD after 6 months of opening FD but before the maturity date, you would get 2% lower interest rate.
5) When interest is paid for non cumulative deposits?
In case of non cumulative deposits, interest would be paid on the last day of the month or quarter or half year or year based on the scheme and option chosen.
6) Can we submit Form-15G or Form-15H?
Yes. Individuals can submit a form 15G or 15H to the company to not to deduct TDS on their FD interest.
7) In an emergency, can I get a loan against my FD?
Yes, but after 3 months from the date of opening FD. One can request for the loan on this FD which would be up to 75% of the FD amount. The interest rate would be 2% higher than the FD interest rate on such loan.
8) Can NRI’s invest in this FD Scheme?
No. NRI’s cannot invest in this Fixed Deposit. If an individual has invested in this FD and later became NRI, then they can continue this FD till maturity. However, they cannot renew their FD after becoming NRIs. Maturity amount should go to NRO account only. There are another set of NRI FDs being offered by Bajaj Finserv which are offered when you put “request a call” on their website and respective NRI interest rates and taxation guidelines would apply.
9) If I am an EMI Card holder, would I get 0.1% extra interest?
EMI Card holders would get 0.1% extra interest.
10) If I am an existing auto loan customer, would I get 0.1% extra interest?
No. They would not get any extra FD interest.
You may like: ICICI Home Finance FD Offers 11.39% Yield
11) How much would I get in 5 years from this FD?
This would depend on whether you are new customer, existing customer or senior citizen. Here is the interest rate chart for 5 years FD scheme you invest Rs 1 Lakhs.
11) What are the Bajaj Finserv Fixed Deposit toll free number or customer care details?
You can reach at any of the following details for queries or complaints.
i) You can contact them at this link which has various options.
ii) You can reach them at 08698010101
Should you invest in Bajaj Finserv FD Scheme in 2020?
Bajaj Finserv is a trusted brand. Its FDs have good credit rating from S&P Global, Crisil and ICRA. It offers highest interest rates up to 7.85%. One should consider the NBFC crisis going on now. FD’s does not offer any security the way Secured NCDs offer to some extent. If you are a high risk investor and willing to consider these risks, you can invest in this FD scheme and enjoy high interest rates. If you are a low risk investor, stay away from such FD schemes.
If you enjoyed this article, share it with your friends and colleagues through Facebook and Twitter.
Bajaj Finserv Fixed Deposit Scheme 2020 Review
- 5 Mutual Funds with Consistent Positive Returns in 9 out of 12 Months - June 8, 2023
- How to Use Credit Cards to Improve Credit Score? - June 7, 2023
- 11 Genuine Ways to Make Money in Free Time (Online + Offline) - June 5, 2023
No way to email this article to my uncle looking to invest.
I agree Daughn. There are some sytem issues when I am enabling social shares, hence I disabled it. You can copy URL and send it thru whatsapp if possible
NBF are going through crises , also this share had very high volatility, how much risk do you see compared to PSU bank FD. Is it wise to remove money from this & keep in PSU back FD.
More over multiple banks crisis rumored is there, so is it safe to keep big amount in Private Big asset allocation banks.
If No – which are the safest MF (Debt Fund) to park big amount for short period, but 100% safe, post Franklin Bad experience.