Bajaj Fin reduces minimum fixed deposit limit

Bajaj Finance has always offered one of the best rates for its fixed deposits, rated AAA by rating agencies. The only chink in the armour has been a relatively higher minimum deposit requirement. Here’s some good news.

The company has lowered the minimum investment amount for its fixed deposits to ₹25,000. Earlier, for depositors in the National Capital Region and those in Greater Mumbai, the minimum deposit amount was a much higher ₹75,000, while it was ₹50,000 for the rest of India.

The NBFC currently offers an annual cumulative interest rate of 8.05 percent for a tenure of 36-60 months for its fixed deposits. Senior citizens with deposit size upto Rs 1 Crore get an additional benefit of 0.25 percent.

Go direct through Zerodha

Discount-broker Zerodha recently launched its direct mutual fund platform ‘COIN’. Through its portal, you could invest in mutual funds in demat form without being charged upfront or trail commissions. However, there will be flat fee of ₹50 per month charged to investors over and above investments of ₹25,000.

No respite for borrowers

The party for borrowers is clearly over. By keeping rates unchanged and highlighting upside risks to inflation, the RBI has reinforced the near-zero possibility of future rate cuts.

Banks are unlikely to tinker much with lending rates, which have already moved lower by a steep 70-90 basis points over the past three months. Hence, it’s time for borrowers to shop for best deals rightaway.

Depositors fortunately can heave a sigh of relief, as sharp cuts in deposit rates are unlikely.

Investors prefer bank FDs

More than 95 per cent Indian households prefer to park their money in bank deposits, according to recently realised SEBI Investor Survey (SIS) 2015. It was followed by life insurance, precious metals, post office savings and real estate in that order.

The survey was conducted across urban and rural areas of the country with a sample size of 36,756 respondents.

The survey further showed that mutual funds are the most popular investment instrument among the investors in the financial instruments (66 percent). About 60 per cent of mutual fund investors use the SIPs (Systematic Investment Plan) mode to investing.

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