Non-banking financial company Bajaj Finance has raised interest rates on its fixed deposit (FD) schemes, offering up to 7.75 percent returns for senior citizens. The move comes amid rising demand for fixed-income instruments.The company has increased FD rates by up to 45 basis points on select tenures, particularly in the 31 to 60 month category.Following the revision, regular investors can now earn up to 7.40 percent interest, while senior citizens are eligible for a higher rate of up to 7.75 percent.The revised rates came into effect from May 1, 2026, and are part of a broader recalibration of deposit offerings by NBFCs as they compete with banks for retail savings.
Bajaj Finance has also adjusted rates across other tenures, with returns ranging from about 6.60 percent for shorter durations to 7.40 percent for longer-term deposits for general investors.
For senior citizens, the corresponding rates are higher across tenures, typically offering an additional premium over regular FD rates.This aligns with the broader trend in the market, where financial institutions offer extra returns to attract elderly investors seeking stable income options.The move comes at a time when fixed deposits are regaining traction among investors due to volatility in equity markets and global uncertainties. NBFCs, in particular, have been actively revising deposit rates to remain competitive with banks and small finance institutions that are offering relatively higher yields in certain tenures.While Bajaj Finance’s revised rates place it among the higher-yielding NBFC options in the long-term segment, other institutions, such as small finance banks, continue to offer even higher returns in select cases.However, investors often weigh factors such as credit rating, liquidity, and safety alongside returns while choosing FD instruments.The latest rate hike reflects intensifying competition in the fixed deposit space, with companies aiming to attract household savings by offering better returns, especially to senior citizens looking for predictable and secure income streams.