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Fixed deposit returns remain one of the most trusted and secured investment tools in India.
Multiple NBFCs offer higher FD interests than traditional banks. (Representative Image)
When we hear the word ‘fixed deposit’, it is the promise of a safe and secure traditional banking network that usually rings in our heads. As is known, fixed deposits guarantee assured returns with tax advantages in flexible tenures alongside minimal risks associated with some of the other investment instruments.
But do you know India’s non-banking financial companies (NBFCs) are now offering interest rates higher than you sign up for with your usual fixed deposit scheme at many traditional banks? Some of the lenders are going as far as 7-8 per cent of returns for selected tenures.
Unlike bank fixed deposits, however, NBFC deposits are not insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC). The DICGC is a subsidiary of the Reserve Bank of India (RBI), which gives deposit insurance of up to Rs 5 lakh for registered bank accounts.
NBFCs
The fixed deposits have historically been the ideal investment tool for individuals with a low-risk appetite, eyeing long-term returns on their sums assured. By allocating a lump sum amount in a financial institution for a predetermined period, you can earn interest at a fixed rate in any given FD scheme.
The safe and stable model of fixed deposits often makes them more enticing for India’s middle-class investors than the volatile mutual fund schemes. Despite no DICGC backing, NBFC deposit schemes are forcing investors to reconsider their FD plans on the basis of returns, tenures and credit ratings enjoyed by some of the leading NBFC companies in India.
Latest FD Interest Rates At NBFCs
One of the leading NBFCs in India, Bajaj Finance, is offering FD interest rates in the region of 6.60-6.95 per cent per annum to general-public depositors. The bracket goes up to 6.95-7.30 per cent for senior citizens.
For citizens below 60:
Tenure At maturity (p.a) Monthly (p.a) Quarterly (p.a) Half-yearly (p.a) Annually (p.a)
12-14 months 6.60% 6.41% 6.44% 6.49% 6.60%
15-23 months 6.75% 6.55% 6.59% 6.64% 6.75%
24-60% 6.95% (Highest) 6.74% 6.78% 6.83% 6.95% (Highest)
For senior citizens:
Tenure At maturity (p.a) Monthly (p.a) Quarterly (p.a) Half-yearly (p.a) Annually (p.a)
12-14 months 6.95% 6.74% 6.78% 6.83% 6.95%
15-23 months 7.10% 6.88% 6.92% 6.98% 7.10%
24-60 months 7.30% (Highest) 7.07% 7.11% 7.17% 7.30% (Highest)
At Shriram Finance, the interest rate offered to regular depositors stands in the range of 6.79-7.20 per cent. The company offers a higher interest rate on FD schemes for senior citizens and women.
Fixed interest rate for deposits:
Tenure Monthly % p.a. Quarterly % p.a. Half-Yearly % p.a. Yearly % p.a.
12 months 6.79% 6.82% 6.88% 7.00%
15 months 7.02% 7.06% 7.12% 7.25%
18-23 months 6.93% 6.97% 7.03% 7.15%
24-35 months 7.02% 7.06% 7.12% 7.25%
36-60 months 7.35% 7.39% 7.46% 7.60% (Highest)
The same is the case with Muthoot Finance, offering fixed deposit interest rates in the range from 7.65 to 8.50 per cent to regular depositors.
Fixed interest rates for deposits over Rs 1,000 and below Rs 3 crore:
Tenure Rate of Interest
12 Months 7.65%
24 months 8.00%
36 months 8.50%
48 months 8.60% (Highest)
60 Months 8.50%
Tags: Fixed Deposits, NBFCs, Biz
Delhi, India, India
March 09, 2026, 17:30 IST
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