August 21, 2019: Bajaj Finance Ltd, a deposit accepting Non-Banking Financial Institution (‘NBFC’) and a lending arm of Bajaj Finserv group, has announced its new offering of Fixed Deposit to NRIs enabling them to benefit from high returns of up to 8.95%. Bajaj FinanceFixed Deposit for NRIs offers flexible tenor options between 12 months and 36 months, along with multi-deposit and easy renewal facilities. NRIs can easily invest in a Bajaj Finance Fixed Deposit by making a deposit from their NRO account.
Commenting on the launch, Mr Sachin Sikka, Chief Business Officer – Retail & Corporate Liabilities said, “We aim to cater the NRI investors seeking to invest in Indian market to generate higher returns. Fixed deposit are the safest investment option and regulatory environment is fairly conducive for NRIs to make such investments. Bajaj Finance Fixed deposit has the highest stability ratings which indicates safety of investments.”
As per reports by the World Bank, India has remained the top receiver of remittances in 2018 with $79 billion. An amount of INR 800 billion is parked in NRO accounts, in the form of savings account balances, earning very low returns. With volatility in global markets, NRIs could consider traditional investment avenues like Fixed Deposits back home.
Key feature of Bajaj Finance Fixed Deposit
High FD interest rates
Bajaj Finance Fixed Deposit offers high returns, which are unaffected by market fluctuations. For new NRI customers investing for 36 months in a cumulative fixed deposit, interest rate can go up to 8.60%; interest rates for existing customers can go up to 8.85% and up to 8.95% for senior citizens.
Highest safety of investment
Bajaj Finance Limited was assigned a long-term rating of ‘BBB-/Stable’, which is equivalent to India’s sovereign rating, and a short-term rating of ‘A-3’ by S&P Global Ratings this year. Bajaj Finance Fixed Deposit also has the highest stability ratings of FAAA by CRISIL and MAAA by ICRA, which indicates the highest safety of the investment.
NRIs planning to invest in a Bajaj Finance Fixed Deposit, can choose a tenor of 1 to 3 years. Those willing to invest for a longer time frame can consider laddering fixed deposits to get higher returns, along with intermittent liquidity.
Investors can also consider forecasting their returns, using the handy fixed deposit calculator before they start investing. It could help plan their investments, so that they can choose tenor and invest as per their convenience.
NRIs can invest in multiple NRI fixed deposits at the same time, with a single cheque. This helps them doing away with the hassle of filling separate application forms, and making different payments.
Savvy investors, wishing to stay invested in a Bajaj Finance FD for a longer period, can opt for the renewal option, at the time of investment itself. Subsequently, they can also get 0.10% renewal benefit.
Taxation of investment
While investors may be able to reap several benefits by investing in a fixed deposit, investors must also consider taxation of their investments. Here’s a look at the TDS rates applicable for NRI fixed deposit in India.
If annual interest on deposit is less than Rs.50 lacs If annual interest on deposit is more than Rs.50 lacs, but less than 1 Cr If annual interest on deposit is more than Rs.1 Cr
31.2% 34.32% 35.88%
Investing in a Bajaj Finance Fixed Deposit is convenient and investors can pay through their cheque or an RTGS/NEFT from their NRO bank account. They simply need to fill in a few details online and start investing with just Rs. 25,000. Bajaj Finance Limited NRI Fixed Deposit offers high returns with lower risk. More than 1,39,000 customers have invested in Bajaj Finance Fixed Deposit, contributing towards a deposit book amount of more than Rs. 15000 crore.