Non-banking financial companies (NBFCs) offer fixed deposit rates that are usually higher than many traditional bank deposits, with some lenders providing returns of up to 7-8% for select tenures.
However, it is important to note that unlike bank fixed deposits, NBFC deposits are not insured by the Deposit Insurance and Credit Guarantee Corporation, a subsidiary of the Reserve Bank of India (RBI), which provides deposit insurance of up to ₹5 lakh for bank accounts.
As a result returns, tenures, and credit ratings are key factors for investors comparing NBFC deposit schemes. Companies such as Bajaj Finance, Shriram Finance, and Mahindra & Mahindra Financial Services currently offer competitive rates across different maturity periods.
Why choose FD?
Fixed Deposits (FDs) are often viewed as a safe and reliable investment tool as they tend to offer guaranteed returns with higher interest rates than savings accounts, making them ideal for risk-averse investors.
Through a fixed deposit, or FD, an individual can allocate a lump sum amount in a financial institution for a predetermined period and earn interest at a fixed rate.
Because returns are locked in at the time of investment, FDs are often preferred by investors looking for stable and predictable earnings, something which is not assured in stocks and mutual funds.
Here’s a look at the latest FD interest rates offered by major NBFCs in India – Bajaj Finance, Shriram Finance, Cholamandalam Investment & Finance, Tata Capital, and Muthoot Finance.
Bajaj Finance
FD interest rates at Bajaj Finance range from 6.60% to 6.95% per annum for general-public depositors and from 6.95% to 7.30% for senior citizens. Tenures for regular FDs range between 12 to 60 months.
FD rates for customers below the age of 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) |
Source: Baja Finance
FD rates 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) |
Source: Bajaj Finance
Shriram Finance
FD interest rates at the NBFC range from 6.79% to 7.20% for depositors, while the tenures for regular FDs can be anywhere between 12 to 60 months, as per the requirement or goal of the investor.
In the case of Shriram Finance, senior citizens aged 60 years and above will receive an additional 0.50% per annum interest on deposits. The same benefit is extended to women.
FD 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) |
Source: Shriram Finance
Muthoot Capital
FD interest rates at Muthoot Capital range from 7.65% to 8.50% for depositors, while the tenures for regular FDs can be anywhere between 12 to 60 months, as per the requirement or goal of the investor.
Muthoot Capital also offers an additional an additional 0.25% interest for senior citizens. However, this benefit is not applicable to non-resident senior citizen.
FD interest rates for deposits over ₹1,000 but below ₹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% |
Source: Muthoot Finance
