NBFC FD Interest Rates 2026
In India, a lot of people invest in fixed deposits, as it is a great investment that offers attractive returns. Along with commercial banks, nowadays non-banking financial corporations (NBFCs) have also started offering fixed deposits to their customers. NBFC FD Interest rates for different organizations range from 6.15% p.a. to 8.50% p.a.
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 Organization | Interest Rate for 1 Year | Interest Rate for 3 Year | Interest Rate for 5 Year | Tenure Range |
ICICI Home Finance | 6.85% | 7.15% | 7.15% | 12 months to 60 months |
Bajaj Finance Ltd. | 6.95% | 6.95% to 7.30% | 7.30% | 12 months to 60 months |
HDFC Ltd. | 6.75% | 6.90% | 6.65% | 12 months to 60 months |
LIC Housing Ltd. | 6.70% | 6.85% | 6.90% | 12 months to 60 months |
Manipal Housing Finance Syndicate Ltd. | 8.25% | 8.25% | 7.75% | 12 months to 60 months |
Mahindra Finance | 6.75% | 7.00% | - | 12 months to 36 months |
PNB Housing Finance Ltd. | 7.00% | 7.10% | 7.10% | 12 months to 60 months |
Muthoot Capital Services Limited | 7.65% | 8.50% | 8.50% | 12 months to 60 months |
Shriram Finance Ltd. | 7.00% | 7.60% | 7.60% | 12 months to 60 months |
Sundaram Finance | 6.70% to 7.20% | 7.50% to 8.07% | - | 12 months to 36 months |
FAQs on NBFC FD Interest Rates
- Which factors are considered by NBFCs when deciding the rate of interest on fixed deposits?
NBFCs consider various factors like present repo rates, internal policies, profitability, etc., when deciding the rate of interest on fixed deposits.
- How do NBFCs raise money?
NBFCs raise money through issuing loans for a long duration at a comparatively low interest rate or through Foreign Direct Investment. Other ways for NBFCs to raise money are issuing bonds, issuing commercial paper for small duration loans, etc.
- Is it safe to invest in FD with an NBFC?
Fixed deposits from NBFC having AAA ratings from ICRA and CRISIL are considered safe investments.
- Do NBFCs provide senior citizens with an additional rate of interest on fixed deposit investment?
Mostly NBFCs do provide senior citizens with an additional rate of interest of 0.25% on fixed deposit investment.
- Will interest earned on NBFC fixed deposit be taxed?
Yes, the interest earned on NBFC fixed deposit will be taxed.
- Can NBFCs issue cheques?
No, NBFCs cannot issue cheques as they are not a part of the payment or settlement system.
- Do NBFCs offer a better rate of interest than banks on fixed deposit investment?
Yes, generally, NBFCs do offer a more competitive rate of interest than banks on fixed deposit investment.
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