Higher FD Returns in 2026: Fixed deposits remain one of the most preferred investment options for risk-averse investors in India. However, in recent months, many savers have started exploring NBFC fixed deposits as these institutions often provide slightly higher interest rates compared with traditional bank FDs.
Recent financial reports indicate that while banks are revising FD rates gradually, NBFCs are trying to attract deposits by offering competitive returns across multiple tenures.
At the same time, several banks have revised their deposit rates in March 2026, with some schemes offering up to around 8.10% interest for senior citizens, highlighting the competition in the deposit market.
Why NBFC Fixed Deposits Are Gaining Popularity
NBFC fixed deposits work in a similar way to bank FDs, where investors deposit money for a fixed tenure and earn a predetermined interest rate. The key difference is that NBFCs often offer higher FD returns to attract investors and compete with banks.
Investment tenures generally range from 12 months to 60 months, and many companies provide options such as monthly, quarterly or cumulative interest payouts.
Because of these flexible features and higher yields, NBFC deposits have become an option for investors looking to enhance returns from fixed-income investments.
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Interest Rates Offered by Major NBFCs
Some of the leading NBFCs in India currently offer FD schemes with varying interest rates depending on tenure and investor category.
Bajaj Finance FD Rates
Bajaj Finance is among the most widely known NBFCs offering fixed deposit schemes.
The company provides interest rates ranging from 6.60% to 6.95% per annum for general investors, depending on tenure. For senior citizens, the rate can go up to 7.30% per annum.
Deposits are available for tenures between 12 and 60 months, giving investors flexibility based on their financial goals.
Shriram Finance FD Rates
Another major NBFC in the deposit market is Shriram Finance.
The company offers FD interest rates generally ranging between 6.79% and 7.20% for regular investors across different tenures. Senior citizens and women investors typically receive an additional 0.50% interest benefit.
This additional benefit makes the effective higher fd returns for eligible investors.
Muthoot Capital FD Rates
Muthoot Capital Services is known for offering relatively high interest rates among NBFCs.
Its FD schemes can offer returns in the range of about 7.90% to 9.10% for general investors, while senior citizens may receive around 8.15% to 9.35% depending on tenure.
Higher rates are usually available for longer deposit tenures.
Comparison of Interest Rates Offered by Top NBFCs
| NBFC | General Investor Rate (p.a.) | Senior Citizen Rate (p.a.) |
| Bajaj Finance | 6.60% – 6.95% | 6.95% – 7.30% |
| Shriram Finance | 6.79% – 7.20% | Up to about 7.70% with extra benefit |
| Muthoot Capital | 7.90% – 9.10% | 8.15% – 9.35% |
| PNB Housing Finance | 6.60% – 6.90% | 6.85% – 7.15% |
Interest rates vary depending on tenure, deposit amount and payout option.
Bank FD vs NBFC FD: What Investors Should Know
While NBFC deposits may offer higher interest rates, experts often advise investors to carefully check the credit rating and financial strength of the company before investing.
Unlike bank deposits, NBFC FDs are not protected under the same deposit insurance coverage provided to bank deposits. Therefore, choosing companies with strong credit ratings and a reliable track record is considered important for reducing risk.
Things Investors Should Check Before Investing
Before choosing an NBFC FD scheme, investors should evaluate factors such as the tenure of the deposit, interest payout options and the financial stability of the company.
Experts also recommend comparing interest rates offered by banks, small finance banks and NBFCs to identify the best option based on risk appetite and investment horizon.
