Bajaj Finance has raised interest rates on its fixed deposits by 15 to 40 basis points across tenures of 12 to 60 months, with the revised rates taking effect on October 7, 2026. The increase came shortly after the Reserve Bank of India raised its policy repo rate by 25 basis points to 5.50%, signalling a shift toward tighter monetary policy.
The new rates take Bajaj Finance’s highest rate for regular depositors to 7.75% a year on fresh deposits with a 31–60 month tenure, compared with 7.40% earlier. Senior citizens can earn up to 8.15%, while customers renewing maturing deposits can receive an additional 10 basis points, taking the maximum rates to 7.85% for regular depositors and 8.25% for senior citizens.
Key takeaways
- Bajaj Finance has increased FD rates by 15–40 bps.
- Revised rates are effective October 7, 2026.
- The new rates apply to fresh deposits and renewals.
- Regular depositors can earn up to 7.75% on 31–60 month deposits.
- Senior citizens can earn up to 8.15% for the same tenure.
- Renewing customers receive an additional 10 bps.
- The maximum renewal rate is 7.85% for regular depositors and 8.25% for senior citizens.
- RBI raised the repo rate by 25 bps to 5.50% on October 7, its first hike since February 2023.
- Bajaj Finance has concentrated the largest increases on longer-tenure deposits.
New Bajaj Finance FD rates
The rate increase varies according to the deposit tenure.
| Tenure | Regular depositors: new rate | Earlier rate | Increase |
|---|---|---|---|
| 12–17 months | 6.80% | 6.60% | 20 bps |
| 18–30 months | 7.00% | 6.85% | 15 bps |
| 31–60 months | 7.75% | 7.40% | 35 bps |
For senior citizens, the additional interest benefit has also increased.
| Tenure | Senior citizen: new rate | Earlier rate | Increase |
|---|---|---|---|
| 12–17 months | 7.20% | 6.95% | 25 bps |
| 18–30 months | 7.40% | 7.20% | 20 bps |
| 31–60 months | 8.15% | 7.75% | 40 bps |
The revised rates apply to deposits ranging from ₹15,000 to ₹3 crore, according to reports.
Senior citizens get the biggest increase
The largest rate increase has gone to senior citizens booking deposits for 31–60 months.
Their rate has increased by 40 basis points, from 7.75% to 8.15%.
Bajaj Finance has also increased the additional interest premium available to senior citizens from 35 basis points to 40 basis points over the applicable regular-depositor rate.
This means a senior citizen choosing the longest eligible tenure can now receive an annual rate above 8% without relying on market-linked investments.
For investors who prioritise predictable returns, that difference can be meaningful over several years.
Renewal customers get another 10 bps
Bajaj Finance is also providing an additional 10 basis points to customers renewing their maturing deposits.
As a result, the maximum effective rate becomes:
Regular depositor: 7.85%
Senior citizen: 8.25%
Both rates apply to the 31–60 month tenure for eligible renewals.
This creates an incentive for existing depositors to renew rather than move their money elsewhere.
The additional 10-bps benefit is separate from the standard senior-citizen premium.
Why did Bajaj Finance raise FD rates now?
The immediate trigger is the RBI’s monetary-policy decision.
On October 7, the RBI’s six-member Monetary Policy Committee unanimously raised the repo rate by 25 basis points, taking it from 5.25% to 5.50%.
The central bank also changed its policy stance from neutral to calibrated tightening.
It was the RBI’s first repo-rate increase since February 2023.
A higher policy rate can eventually affect borrowing and deposit rates across the financial system.
For deposit-taking institutions, higher deposit rates can help attract funding when the cost of money begins moving higher.
Bajaj Finance responded almost immediately, although its FD increases are not mechanically required to match the RBI’s 25-bps move.
That explains why some of its increases are 15 bps, while others reach 40 bps.
RBI’s rate hike changes the interest-rate environment
The RBI’s decision marks an important change after an extended period of falling or stable policy rates.
For much of the preceding cycle, depositors faced declining FD rates as banks and financial institutions responded to lower policy rates.
The October increase reverses that direction, at least for now.
The repo rate is the interest rate at which the RBI lends short-term money to eligible financial institutions against securities. Changes in the policy rate influence the broader cost of funds in the financial system, although the impact on individual deposit products varies.
The RBI’s decision was influenced by changing inflation and macroeconomic conditions, while the central bank retained a calibrated approach to future policy decisions.
Why longer-tenure FDs received bigger increases
Bajaj Finance has deliberately weighted its latest increase toward longer-duration deposits.
The biggest standard increase for regular customers is 35 bps on 31–60 month deposits.
For senior citizens, the increase reaches 40 bps for the same tenure.
This structure gives depositors a stronger incentive to lock their money in for longer periods.
For the company, longer-duration deposits can also provide greater funding visibility.
The trade-off for customers is liquidity.
An investor choosing a five-year deposit gets a higher locked-in rate but has less flexibility than someone choosing a shorter tenure.
Therefore, the highest rate is not automatically the best choice for every depositor.
How much more can an investor earn?
The difference between the old and new rates may appear small, but the impact increases with deposit size and tenure.
For example, a simple annual-interest comparison on a ₹10 lakh deposit illustrates the effect:
| Rate | Approx. annual interest on ₹10 lakh |
|---|---|
| 7.40% | ₹74,000 |
| 7.75% | ₹77,500 |
| 7.85% | ₹78,500 |
| 8.15% | ₹81,500 |
| 8.25% | ₹82,500 |
These figures are simple annual-interest illustrations and do not account for cumulative compounding, taxes, premature withdrawal conditions or other product-specific rules.
At 7.75%, for example, the simple annual difference versus the earlier 7.40% rate is ₹3,500 on ₹10 lakh.
For a senior citizen earning 8.15% instead of the previous 7.75%, the simple annual difference is ₹4,000 per ₹10 lakh.
The actual maturity amount will depend on whether the depositor chooses cumulative or non-cumulative interest.
Cumulative and non-cumulative options remain available
Bajaj Finance allows depositors to choose between different interest-payment structures.
Under a cumulative FD, interest is accumulated and paid at maturity.
Under a non-cumulative FD, interest can be paid at intervals such as monthly, quarterly, half-yearly or annually.
The choice depends on the investor’s cash-flow requirements.
A retiree looking for regular income may prefer periodic interest payments, while someone focused on building a larger maturity corpus may prefer cumulative interest.
The higher headline rate therefore needs to be considered alongside the payout structure and tenure.
Is Bajaj Finance a bank?
No.
Bajaj Finance is a non-banking financial company (NBFC) and a subsidiary of Bajaj Finserv.
It is also a deposit-taking NBFC, which means eligible customers can place fixed deposits with the company under the applicable regulatory framework.
This distinction is important for investors comparing its FD with deposits offered by commercial banks.
Deposit insurance and the regulatory treatment of deposits can differ depending on the type of institution and product. Investors should therefore check the applicable protection, terms and conditions before making a deposit decision.
The latest rate increase does not mean that Bajaj Finance FDs should automatically be treated as equivalent to bank savings products.
What does the rate hike mean for existing depositors?
The revised rates apply to fresh deposits and renewals, according to reports.
That generally means an FD already locked in at an earlier rate does not automatically receive the new rate simply because Bajaj Finance has changed its rate card.
The higher rate becomes relevant when a customer books an eligible new deposit or renews a maturing deposit under the revised terms.
Existing customers whose deposits are approaching maturity therefore have a decision to make.
They can compare the new Bajaj Finance rate with rates offered by banks, other NBFCs and small-savings alternatives before renewing.
Why this matters beyond Bajaj Finance
Bajaj Finance’s move could be an early indication of a broader change in India’s deposit market.
If the RBI’s rate-hike cycle continues, banks and NBFCs may face greater pressure to compete for deposits.
That competition can work in favour of savers.
However, the response will not necessarily be uniform.
Different financial institutions have different funding needs, loan growth, liquidity positions and deposit mixes.
Some may raise deposit rates quickly, while others may wait.
Therefore, one NBFC’s 40-bps increase should not be interpreted as evidence that all banks will immediately raise FD rates by the same amount.
What should FD investors watch now?
Investors should focus on more than the headline maximum rate.
1. Tenure
The highest rate may require locking money away for 31–60 months.
Investors should not choose a longer tenure solely because it offers the highest advertised return.
2. Senior-citizen benefit
Eligible senior citizens receive a higher rate, and the additional premium has increased under Bajaj Finance’s revised structure.
3. Renewal benefit
Existing customers should check whether the additional 10-bps renewal benefit applies to their deposit.
4. Taxation
FD interest is generally taxable according to the investor’s applicable tax rules. A higher nominal rate does not necessarily translate into an equivalent increase in post-tax returns.
5. Credit and institutional risk
Investors should assess the institution and the applicable regulatory framework rather than choosing an FD solely because it offers the highest interest rate.
6. Liquidity
Premature withdrawal can affect returns and may involve penalties or other conditions.
The bigger picture for savers
The immediate beneficiary of Bajaj Finance’s move is the depositor.
After several years in which FD rates generally moved lower as the RBI eased monetary policy, savers are now seeing the possibility of a renewed competition for deposits.
The change is particularly relevant for conservative investors and senior citizens who depend on fixed-income products.
But the bigger story is the potential change in the direction of India’s interest-rate cycle.
The RBI has not promised a series of additional hikes. Its move to calibrated tightening indicates that future decisions will remain dependent on inflation, growth and other economic conditions.
If rates continue higher, depositors could see more attractive offers. If the RBI pauses, financial institutions may have less reason to keep increasing deposit rates.
Looking Ahead
Bajaj Finance’s decision shows how quickly the deposit market can respond when the RBI changes its policy direction. The company’s decision to increase rates by as much as 40 bps, particularly on longer tenures and for senior citizens, gives savers an immediate opportunity to lock in higher returns.
The next question is whether other banks and NBFCs follow. For depositors, the most useful strategy is to compare the full return, tenure, tax impact, liquidity conditions and institutional risk rather than simply chasing the highest advertised FD rate.
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