Non-banking financial company Bajaj Finance has increased interest rates on its fixed deposit (FD) schemes, now offering returns of up to 7.75% for senior citizens.

The revision, effective May 1, 2026, comes amid growing demand for fixed-income investment options. The company has raised FD rates by up to 45 basis points on select tenures, particularly in the 31–60 month range.

Following the hike, regular investors can earn up to 7.40% interest, while senior citizens receive a higher rate of up to 7.75%. Across other tenures, rates for general investors range from around 6.60% for shorter durations to 7.40% for longer-term deposits. Senior citizens continue to benefit from an additional premium across all tenures.

The move reflects a broader trend in the market, where financial institutions are offering higher returns to attract elderly investors seeking stable and predictable income streams.

It also comes at a time when fixed deposits are regaining popularity due to volatility in equity markets and global economic uncertainty. NBFCs have been actively revising their deposit rates to stay competitive with banks and small finance institutions, some of which are offering even higher yields in certain tenures.

While Bajaj Finance’s revised rates position it among the higher-yielding NBFC options, investors typically consider factors such as credit ratings, liquidity, and overall safety alongside returns when choosing FD instruments.

Overall, the rate hike highlights intensifying competition in the fixed deposit space, as institutions look to attract household savings with more attractive and secure investment options.