No sooner did South Indian Bank raise its fixed deposit rates than Bajaj Finance increased its rates too. Last week, South Indian Bank raised its fixed deposit rates which are now as high as 6 percent for long tenor deposits, while one-year deposits offer interest at the rate of 5.4 percent per annum.
Following this, Bajaj Finance raised its term deposit rates, with effect from April 25, to 5.75 percent for FDs with a tenure of 12-23 months. For long tenure FDs i.e., between 24 to 35 months, the interest rates have been raised to 6.4 percent per annum.
For FDs between 36-60 months the rate of interest is now 6.9 percent for regular customers. At the same time, senior citizens are entitled to receive an extra 0.25 percent interest across all tenors.
Latest FD rates by Bajaj Finance for deposits up to ₹5 crore
|Tenor||For 12-23 months (%)||For 24-35 months (%)||For 36-60 months (%)|
(Source: bajajfinserv.in, rates w.e.f. April 25, 2022)
Bajaj Finance gives special FD rates for these tenors
|Tenors (months)||Annual Rates (%)|
As senior citizens are entitled to receive a higher rate of interest, the special FD interest rate increases to 7.1+0.25 = 7.35 percent per annum for 44-month tenor.
The above-mentioned rates are applicable in case of annual pay outs. If depositors decide to choose monthly interest pay outs, the rate will differ.
For instance, when the rate is 5.75% for annual pay outs for tenor 12-23 months, it declines to 5.6 percent in case of monthly pay out option.
Likewise, in the long tenor deposits (36-60 months), when the interest is 6.9 percent per annum, it declines to 6.69 percent in case of monthly pay out option.
Similarly, in case of 24-35 months deposits, the interest falls to 6.22 percent in case of monthly pay out option whereas the annual rate is slightly higher at 6.4 percent per annum.
It is important to note here that State Bank of India (SBI) and HDFC Bank also raised interest rates on long-term fixed deposits (FDs) in the month of February. Prior to that, HDFC Bank, in January, raised the FD interest rates by five to ten basis points
It is vital to know that fixed deposit interest rates are fully taxable. The interest you earn is added to the total income and is taxed at slab rates applicable to income.