Bajaj Finance Raises FD Rates — Up to 7.75% Now
Bajaj Finance has increased its fixed deposit interest rates by up to 45 basis points starting May 1. Regular investors can now earn up to 7.40% per year, while senior citizens get an extra bump — up to 7.75% annually. If your money is sitting idle in a savings account earning 3-4%, this is worth a serious look.
If a senior citizen parks ₹5 lakh in this FD at 7.75% for 3 years, they earn roughly ₹1.24 lakh in interest — that's like getting 12 months of a decent grocery budget for free, just for leaving money untouched.
Your idle savings could now earn up to 7.75% annually — significantly more than the 3–4% most savings accounts offer — if you move them into this revised FD scheme.
Key Takeaways
Compare this rate against your current bank FD — if you're earning below 7%, shifting to a higher-yield corporate FD like Bajaj Finance could meaningfully boost your returns over 2–3 years.
Senior citizens in your family should act fast — the 7.75% rate is one of the highest available right now in the corporate FD space; lock in a longer tenure before rates fall if RBI cuts repo rates later in 2025.
Check the credit rating of any corporate FD before investing — Bajaj Finance holds AAA ratings from CRISIL and ICRA, which signals low default risk, but unlike bank FDs, corporate FDs are NOT covered by DICGC's ₹5 lakh deposit insurance.
Fixed deposits are having a quiet renaissance in India, and Bajaj Finance's latest rate hike is a good reminder that not all FDs are created equal. From May 1, the NBFC has revised its FD interest rates upward by as much as 45 basis points across various tenures. Regular depositors can now earn up to 7.40% per annum, while senior citizens get an additional benefit, taking their returns up to 7.75% — one of the more competitive rates available in the market right now.
To put this in perspective: most large private and public sector banks are currently offering somewhere between 6.5% and 7.25% on their fixed deposits. A corporate FD from a well-rated NBFC like Bajaj Finance can often beat that, especially for medium tenures of 2 to 4 years. If you have ₹3 lakh sitting in a savings account at 4%, you're leaving real money on the table every year.
Before you rush to invest, though, understand one critical difference: bank FDs are insured up to ₹5 lakh per depositor under the DICGC scheme. Corporate FDs — including those from NBFCs — do not carry this government-backed insurance. This doesn't mean they're unsafe, especially for AAA-rated issuers, but it does mean you should avoid putting your entire emergency fund into one. Diversify across instruments.
For retirement planning or building a predictable income stream, these rates are genuinely attractive — particularly for senior citizens who rely on interest income. You can use GoCredit to explore and compare fixed income options that suit your risk profile and investment horizon.
Pro tip: Ladder your FDs across multiple tenures — say 1 year, 2 years, and 3 years — instead of locking everything into one. This gives you liquidity at regular intervals while still capturing higher long-term rates.
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