PTIRelated
Die-hard fans of fixed deposits have something to cheer about. Bajaj Finance, one of the country’s top-rated finance company, has raised interest rates on fixed deposits by 40 basis points. Now on, fixed deposits from with tenures of three to five years will get 7% instead of 6.6% recently. Senior citizens will get 7.25% for these deposits.
The unexpected move surprised participants in the investor advisor community as it comes just before the Reserve Bank of India’s interest rate-setting meeting. The consensus in the market is that the central bank on Friday could keep rates unchanged.
Investors advisors said there have been no indications of this being an industry-wide trend with most NBFCs expected to keep deposit rates at current levels. The move has triggered speculation that Bajaj Finance might be on a drive to garner deposits before applying for a banking licence though this could not be independently ascertained.
“Investors should make the most of these higher deposit rates and allocate a higher amount to Bajaj Finance,” said Anup Bhaiya, MD and CEO, Money Honey Financial Services. “It is unlikely other companies will raise deposit rates soon.” Bhaiya recommends investors to have deposits of 3-4 companies in their portfolio with higher weightage to Bajaj Finance.
Among peers, Mahindra Finance pays 6.45% for three years. The rate offered by and Home Finance is 6.25%. , the biggest bank in the country, offers 5.3% for three-year deposits.
The unexpected move surprised participants in the investor advisor community as it comes just before the Reserve Bank of India’s interest rate-setting meeting. The consensus in the market is that the central bank on Friday could keep rates unchanged.
Investors advisors said there have been no indications of this being an industry-wide trend with most NBFCs expected to keep deposit rates at current levels. The move has triggered speculation that Bajaj Finance might be on a drive to garner deposits before applying for a banking licence though this could not be independently ascertained.
“Investors should make the most of these higher deposit rates and allocate a higher amount to Bajaj Finance,” said Anup Bhaiya, MD and CEO, Money Honey Financial Services. “It is unlikely other companies will raise deposit rates soon.” Bhaiya recommends investors to have deposits of 3-4 companies in their portfolio with higher weightage to Bajaj Finance.
Among peers, Mahindra Finance pays 6.45% for three years. The rate offered by and Home Finance is 6.25%. , the biggest bank in the country, offers 5.3% for three-year deposits.
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