FD rates hiked by up to 60 bps: These two big non-bank lenders hike fixed deposit rates! Should you invest now?

financialexpress.com:

Two non-bank lenders, Bajaj Finance and Shriram Finance, have recently hiked interest rates by up to 60 basis points (bps) on their fixed deposits (FDs) for various maturity tenures.

The non-banking finance company has raised interest rates on their FDs for senior citizens by up to 60 bps for tenures ranging 25 months to 35 months and 40 bps for tenures of 18 months to 24 months, according to a press release.

These rate hikes are effective from April 3, 2024.

For general customers, Bajaj Finance, a subsidiary of Bajaj Finserv, has increased rates by up to 45 bps for tenures ranging from 25 months to 35 months, 40 bps for tenures ranging from 18 months to 22 months, and 35 bps for 30 months to 33 months.

Also Read: Best FD rates: Up to 9% interest rate on 5-year fixed deposits! Check out the rates from top 5 small finance banks

Senior citizens will continue to avail FD rates of up to 8.85% and non-senior citizens can take benefit of rates of up to 8.6%, by booking digitally in the 42-month tenure, the company said.

“Our enhanced rates across several investment buckets present an attractive proposition for investors seeking stability,” said Sachin Sikka, Head of fixed Deposits and Investments at Bajaj Finance.

The NBFC has raised interest rates on their FDs by 5 bps to 20 bps to 9.40%. The FD rates across tenures would range between 7.85% to 10.50% (cumulative FDs).

In cumulative fixed deposits, investors get the compounded interest paid out along with the principal amount at the time of maturity.

Senior citizens aged 60 years or above at the time of deposit/renewal are eligible to earn an additional 0.50% interest per annum, while women investors can avail an extra 0.10% interest per annum. The company will offer an