Bajaj Finance Raises FD Interest Rates by Up to 45 Basis Points from May 1: Should You Lock In Fixed Deposits Now?
Bajaj Finance: In a move that could nudge cautious savers to take another look at fixed deposits, Bajaj Finance Ltd has raised its FD interest rates by up to 45 basis points, effective May 1, 2026. The timing is particularly intriguing—while most banks have kept their deposit rates largely unchanged, NBFC FDs are starting to look a bit more attractive for those seeking steady and predictable returns.
The obvious shift in favour of longer tenures is what makes this rate change noteworthy. The message is simple: stay invested longer, earn more.
The sharpest increase has come in the 31–60 month bucket. For regular investors, rates have moved up to 7.40% from 6.95%, while senior citizens now get 7.75% compared to 7.30% earlier.
A 45 basis point jump in this segment puts Bajaj Finance’s long-term FDs among the more competitive options currently available, especially for investors willing to lock in funds for three to five years.
Applicable for deposits between ₹15,000 and ₹3 crore (from May 1, 2026)
| Tenure (Months) | At Maturity (% (p.a.) | Monthly | Quarterly | Half-Yearly | Yearly |
|---|---|---|---|---|---|
| 12–17 | 6.60% | 6.41% | 6.44% | 6.49% | 6.60% |
| 18–30 | 6.85% | 6.64% | 6.68% | 6.74% | 6.85% |
| 31–60 | 7.40% | 7.16% | 7.20% | 7.27% | 7.40% |
What’s changed here?
The shorter tenure bucket has simply been stretched from 12–14 months to 12–17 months, with no change in rates. The mid-tenure range has been reshaped to 18–30 months, with a mild increase to 6.85%. The real action, however, is in long-term deposits, now offering 7.40%.
| Tenure (Months) | At Maturity (% (p.a.) | Monthly | Quarterly | Half-Yearly | Yearly |
|---|---|---|---|---|---|
| 12–17 | 6.95% | 6.74% | 6.78% | 6.83% | 6.95% |
| 18–30 | 7.20% | 6.97% | 7.01% | 7.08% | 7.20% |
| 31–60 | 7.75% | 7.49% | 7.53% | 7.61% | 7.75% |
Key takeaways:
Short-term rates are largely unchanged, mid-term deposits get a small bump, and long-term FDs see the biggest jump—up to 7.75%.
With interest rates still uncertain, this hike gives investors a chance to lock in relatively higher returns for the medium to long term. These kinds of FDs can still play a useful role in a portfolio for investors who value certainty over volatility.
Here’s why some investors may find this attractive:
From a safety standpoint, these deposits carry AAA/Stable ratings from CRISIL and ICRA, which suggests strong credit quality and a high likelihood of timely repayments.
If stability is more important to you and you want to stay away from market fluctuations, taking these rates for 3-5 years would be wise if the market continues on a soft trend at a later stage.
However, if you think there will be a higher rate, then investing this amount all at once can be replaced by staged investment.
What is a fixed deposit (FD)?
A fixed deposit is a straightforward investment where you put in a lump sum for a fixed period and earn a guaranteed rate of interest over that tenure.
What tenure options are available?
You can choose a tenure anywhere between 12 and 60 months.
Can you withdraw before maturity?
Yes, premature withdrawal is allowed after three months, though a penalty will apply.
What is the investment range?
You can begin with an investment of ₹15,000 and go up to ₹3 crore, depending on how much you plan to set aside.
Can I take the monthly interest on an FD?
Yes, if you are not going for the non-cumulative option, then the interest will be credited every month.
How do you invest?
You can open a fixed deposit either online or by visiting a branch—whichever suits you better.
Recent changes in interest rates have made Bajaj Finance Ltd fixed deposits more attractive, particularly to those ready to lock in funds for a longer term. With rates touching 7.40% for general customers and 7.75% for senior citizens, it would be prudent to consider FDs if you are seeking low-risk, steady income generation in the coming years.
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