Benefits of Bajaj Finance fixed deposits: A comprehensive guide

Fixed Deposits (FDs) are a popular savings tool in India. They offer guaranteed returns and safety. Among the many options available, Bajaj Finance FD stands out. It is known for its competitive interest rates and customer-friendly features. Here, we explore the benefits of Bajaj Finance FDs. We explain why they are considered some of the best options for investors.

Attractive Interest Rates

One of the main benefits of Bajaj Finance FDs is the attractive interest rates. As of July 2024, the interest rates for regular customers range from 7.20% p.a. to 8.10% p.a., depending on the tenor. Senior citizens enjoy an additional interest rate of 0.40% p.a. This makes it a favourable choice for retirees looking for a steady income. These rates are competitive when compared to those offered by other banks and NBFCs.

Flexible Tenures

Bajaj Finance offers flexible tenures ranging from 12 months to 60 months. This allows investors to choose a tenure that aligns with their financial goals. Bajaj Finance FD rates caters to both short-term and long-term investment needs. You can choose an option that aligns with your financial goals. The flexibility allows you to plan your investments effectively. You can align them with your future financial requirements.

High Stability and Safety

Safety of the investment is crucial for any investor. Bajaj Finance FD is rated FAAA/Stable by CRISIL and MAAA/Stable by ICRA. These ratings indicate high safety and low credit risk. Investors can trust that their money is in safe hands. These ratings are a testament to Bajaj Finance's strong financial health and prudent risk management practices.

Easy Application Process

Opening a Bajaj Finance FD is simple and hassle-free. You can apply online through the official website or visit any of the Bajaj Finance branches. The documentation required is minimal, and the process is quick. This makes it convenient for both new and existing customers. The online application process is straightforward, and you can complete it within minutes.

Online Account Management

Bajaj Finance provides a robust online platform for managing your FD account. You can track your investment, check interest rates, and even renew or close your FD online. This convenience ensures that you always have control over your investment. You can manage your funds at any time. The platform is user-friendly and accessible. It makes it easy for investors to handle their FDs without any hassle.

Loan Against FD

In case of financial emergencies, you can avail a loan against your Bajaj Finance FD. You can borrow up to 75% of the FD amount. This feature provides liquidity without breaking the FD and losing the interest benefits. The loan against FD comes with a lower interest rate compared to personal loans. This makes it a cost-effective way to meet urgent financial needs.

Auto-Renewal Facility

Bajaj Finance offers an auto-renewal facility for FDs. If you opt for this feature, your FD will be automatically renewed at maturity. This ensures that your money continues to earn interest without any lapse. Auto-renewal is a convenient option for those who want to keep their savings invested. It eliminates the need to worry about manual renewal processes.

Nomination Facility

The nomination facility allows you to nominate a person. They will receive the FD amount in case of your demise. This ensures that your investment reaches your loved ones without any legal complications. It is a crucial feature that provides peace of mind. Your savings will benefit your family even in your absence.

No Penalty on Premature Withdrawal for Senior Citizens

For senior citizens, Bajaj Finance offers a special benefit. There is no penalty on premature withdrawal. This is particularly beneficial for retirees who might need access to their funds. It is helpful in case of unforeseen circumstances. This feature provides flexibility and security. Senior citizens can access their funds without incurring penalties.

High Interest Rates for Special Tenures

Bajaj Finance offers special tenures with higher interest rates. For example, tenures of 15, 18, 22, 30, 33, and 44 months come with special interest rates. This feature allows you to maximise your returns by choosing these specific tenures. These higher rates are designed to provide better returns. They benefit investors who can plan their investments around these tenures.

Systematic Deposit Plan

Bajaj Finance provides a Systematic Deposit Plan (SDP). This plan allows you to invest small amounts monthly. This plan is similar to a Systematic Investment Plan (SIP) but for FDs. It is ideal for those who want to build a corpus over time with regular investments. SDP helps inculcate a disciplined savings habit. It is suitable for individuals with regular income.

How to Apply for Bajaj Finance FD

Applying for a Bajaj Finance FD is straightforward. Here are the steps:

1.    Visit the Website

Go to the Bajaj Finance official website and navigate to the Fixed Deposit section.

2.    Registration

Enter your 10-digit mobile number to register your account.

3.    Choose the FD

Select the type of FD, tenor, and amount you wish to invest.

4.    Fill the Form

Complete the online application form with your personal and financial details.

5.    Submit Documents

Upload the necessary documents such as ID proof, address proof, and a photograph.

6.    Make Payment

Transfer the investment amount through net banking or debit card. You can also use any other available payment mode.

7.    Confirmation

Once the payment is successful, you will receive a confirmation along with the FD receipt.

Required Documents

To apply for a Bajaj Finance FD, you need the following documents:

Identity Proof

Aadhaar card, PAN card, passport, voter ID, or driving license.

Address Proof

Utility bill, bank statement, ration card, or any government-issued address proof.

Photograph

A recent passport-sized photograph.

Interest Payout Options

Bajaj Finance offers multiple interest payout options:

Cumulative Option

The interest is compounded quarterly and paid at maturity. This option is ideal for those who do not need regular income and want to maximise their returns.

Non-Cumulative Option

The interest is paid out monthly, quarterly, half-yearly, or annually. This option is suitable for those who need regular income.

Taxation on Bajaj Finance FD

The interest earned on Bajaj Finance FD is taxable under the Income Tax Act, 1961. It is added to your total income and taxed as per your income tax slab. Bajaj Finance also deducts TDS (Tax Deducted at Source) if the interest exceeds ₹40,000 in a financial year. The limit is ₹50,000 for senior citizens. You can submit Form 15G/15H to avoid TDS if your total income is below the taxable limit.

Conclusion

Bajaj Finance FDs offer attractive interest rates and flexible tenors. They also provide high safety for your investment. The application process is easy. The robust online management makes it a convenient choice for investors. Features like the loan against FD and auto-renewal add to the benefits. The no penalty on premature withdrawal for senior citizens is another significant advantage. By choosing Bajaj Finance FD, you can ensure that your savings grow safely and steadily. Visit the Bajaj Markets app or website to book your FD today!

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