Bajaj Finance, one of India's largest deposit-taking non-banking financial companies, has increased fixed deposit interest rates by 15-40 basis points across tenures of 12 to 60 months, with the revised rates effective Wednesday, October 7. According to reports from Mint, the move follows the Reserve Bank of India's six-member Monetary Policy Committee raising the policy repo rate by 25 basis points to 5.50% from 5.25%, and changing its stance to calibrated tightening. This marks the first RBI rate hike since February 2023, ending a three-year pause in monetary policy tightening. The RBI had previously cut the repo rate by 125 basis points during 2025 before maintaining it at 5.25% for four consecutive MPC meetings before the October decision.
Following the revision, senior citizens will earn up to 8.15% for deposits with tenure of 31-60 months, up from 7.75% earlier. As reported by Mint, regular depositors booking fresh deposits will earn up to 7.75% for the same tenure, compared with 7.40% earlier. The NBFC has weighted the rate increase towards longer-tenure deposits, with senior citizens receiving an additional 40 basis points over regular deposits, up from 35 basis points earlier. For home loan borrowers, the 25 basis points hike may not be significant by itself, but for someone with a ₹1 crore or more loan, the full transmission could mean substantial EMI differences every month. Sachin Sikka, Senior Executive Vice President (Deposits & Wealth Management) at Bajaj Finance, stated that "Fixed Deposits continue to be an important part of a balanced savings portfolio, particularly for senior citizens looking for predictable returns. We have weighted our rate hike towards longer tenures, so depositors can lock in higher returns for up to five years on a AAA-rated deposit they can open online in minutes."
According to Mint, rates for regular depositors for 12-17 months have been raised by 20 basis points to 6.80%, while those for 18-30 months have been increased by 15 basis points to 7%. For deposits with tenure of 31-60 months, the rate has been raised by 35 basis points to 7.75%. For senior citizens, rates for 12-17 months have been raised to 7.20% from 6.95%, while those for 18-30 months have been increased to 7.40% from 7.20%. The NBFC is also offering an additional 10 basis points to customers renewing their maturing deposits. Banks usually revise deposit rates in their own time, with new deposits getting the higher rate first, while existing fixed deposits continue to earn the rate at which they were booked. For non-cumulative deposits, a senior citizen opting for monthly interest payouts on a 31-60 month deposit will now earn 7.86% per annum, up from 7.49% earlier.
Depositors renewing a mature fixed deposit with Bajaj Finance will receive an additional 10 basis points per annum over the applicable rate. With this renewal benefit, the interest rate can go up to 7.85% per annum for regular depositors and 8.25% per annum for senior citizens. The 8.25% rate is the highest available under the NBFC's revised FD structure. The revised rates apply to both fresh deposits and renewals, with depositors able to opt for cumulative deposits where interest is paid at maturity, or non-cumulative deposits with monthly, quarterly, half-yearly or annual interest payouts. For instance, a senior citizen opting for monthly interest payouts on a 31-60 month deposit will now earn 7.86% per annum, up from 7.49% earlier.
As reported by Mint, the revised rates apply to both fresh deposits and renewals, with depositors able to opt for cumulative deposits where interest is paid at maturity, or non-cumulative deposits with monthly, quarterly, half-yearly or annual interest payouts. The maximum rates for renewals reach 7.85% for regular depositors and 8.25% for senior citizens for deposits with tenure of 31-60 months. Sikka added that "The additional benefit on renewals is our way of thanking customers who continue to trust us with their savings." Bajaj Finance, a subsidiary of Bajaj Finserv, had 128 million customers as of September 2026 and assets under management of ₹5.85 trillion. For savers, the 25 basis point increase is a welcome step, though the benefit will build up gradually as banks revise their deposit rates. The RBI's calibrated tightening stance suggests savers can keep an eye on when their deposits mature to renew at prevailing rates.
