NBFC FD Interest Rates 2026
NBFC fixed deposits currently earn between 6.60% p.a. and 8.50% p.a., generally higher than bank FDs because NBFCs carry extra credit risk. Compare current, verified FD rates from ten leading NBFCs in India for 2026 below.
Usually, the interest rates offered by commercial banks are lower than those at NBFCs. NBFCs offer greater interest rates due to the 'credit risk' that is associated with NBFCs. However, not every NBFC offers a higher interest rate.
Here Are a Few NBFC Organizations That Provide Better Interest Rates
Interest rates for amounts less than and greater than 2 crores for tenures ranging from 1 year to 5 years.
NBFC Organisation | Interest Rate for 1 Year (p.a.) | Interest Rate for 3 Year (p.a.) | Interest Rate for 5 Year (p.a.) | Tenure Range |
ICICI Home Finance | 6.85% | 7.10% | 7.20% | 12 months to 60 months |
Bajaj Finance Ltd. | 6.60% | 7.40% | 7.40% | 12 months to 60 months |
LIC Housing Ltd. | 6.70% | 7.20% | 7.35% | 12 months to 60 months |
Manipal Housing Finance Syndicate Ltd. | 8.25% | 8.25% | 7.75% | 12 months to 60 months |
Mahindra Finance | 6.60% | 7.40% | 7.45% | 12 months to 60 months |
PNB Housing Finance Ltd. | 7.00% → 6.70% | 7.10% | 7.25% | 12 months to 60 months |
Muthoot Capital Services Limited | 7.65% | 8.50% | 8.50% | 12 months to 60 months |
Shriram Finance Ltd. | 6.85% | 7.50% | 7.50% | 12 months to 60 months |
Sundaram Finance | 6.70% to 7.20% | 7.25% to 7.75% | - | 12 months to 36 months |
Note: Interest rates updated on 09 September 2026.
- Fixed deposits held with NBFCs are not covered by DICGC deposit insurance, unlike deposits with banks, so it is worth checking an NBFC's credit rating, such as an AAA rating from CRISIL or ICRA, before investing.
- Most NBFCs do not allow premature withdrawal of a fixed deposit within the first three months, and withdrawing after that period typically earns a lower rate than the contracted rate.
- Muthoot Capital Services currently accepts fixed deposit applications only from residents of Kerala.
Summary
NBFC fixed deposits offer some of the highest FD rates in India, currently ranging up to 8.50% p.a. across leading NBFCs such as Muthoot Capital, Manipal Housing Finance and ICICI Home Finance. Because NBFC deposits carry more credit risk than bank deposits and are not covered by DICGC insurance, it is important to check an NBFC's credit rating before investing. Compare the latest rates above and choose the NBFC and tenure that best match your investment goals.
FAQs on NBFC FD Interest Rates
1.What factors affect the NBFC FD interest rate offered on a fixed deposit?
NBFC FD interest rates are set based on factors such as prevailing repo rates, the NBFC's internal policies, and its profitability. These factors mean NBFC fixed deposit rates can vary between organisations and change from time to time.
2.How do NBFCs raise the money they use to fund fixed deposits?
NBFCs raise funds for their fixed deposit and lending business mainly through long-term loans and foreign direct investment. They also raise money by issuing bonds and commercial paper for shorter-duration funding needs.
3.Is it safe to invest in an NBFC fixed deposit?
An NBFC fixed deposit is considered safe when the NBFC carries a high credit rating, such as AAA, from agencies like CRISIL and ICRA. Always check an NBFC's current credit rating before opening a fixed deposit with it.
4.Do NBFCs offer senior citizens a higher rate of interest on fixed deposits?
Most NBFCs offer senior citizens an additional rate of interest over their standard NBFC FD rates. The exact additional rate differs by NBFC and is shown in the rate table above.
5.Is interest earned on an NBFC fixed deposit taxable?
Yes, interest earned on an NBFC fixed deposit is taxable as per your income tax slab, similar to bank fixed deposit interest. NBFCs may also deduct TDS on the interest paid if it crosses the prescribed threshold.
6.Can an NBFC issue cheques against a fixed deposit account?
No, NBFCs cannot issue cheques, since they are not part of the banking payment and settlement system. This is one of the key differences between an NBFC fixed deposit and a bank fixed deposit.
7.Do NBFC fixed deposits offer better interest rates than bank fixed deposits?
Yes, NBFC fixed deposits generally offer better interest rates than comparable bank fixed deposits. This is mainly because NBFCs carry higher credit risk than banks, so they compensate depositors with a higher rate of interest.
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