These 6 NBFC FDs Are Offering Higher Returns Than Banks, Earn More on Your Savings

Kokila Chokkanathan
Non-Banking Financial Companies (NBFCs) are attracting investors in 2026 with higher fixed deposit (FD) interest rates compared to traditional banks. While bank FDs typically offer around 6%–7%, many NBFCs are now offering up to 8.5%–9% returns, making them appealing for conservative investors seeking better income.

However, higher returns also come with slightly higher risk, so choosing the right NBFC is important.

📊 Why NBFC FDs Offer Higher Returns

NBFCs usually offer higher interest rates because:

  • They need more deposits to fund lending operations
  • They operate with higher borrowing costs
  • They carry higher credit risk than large banks
Experts note that NBFC FD rates can range from 6.15% to 8.5%+, depending on tenure and credit rating.

Some top NBFCs even offer close to 9% for senior citizens in select schemes.

💰 6 NBFCs Offering Higher FD Returns (2026)

Here are some NBFCs currently known for offering better-than-bank FD interest rates:

1. muthoot capital Services

  • Interest: Up to 8.5%–9%+
  • One of the highest FD rates in the NBFC segment
  • Popular among medium-term investors
2. Shriram Finance

  • Interest: Up to 7.5%–8%
  • Strong presence in retail lending
  • Preferred for stable NBFC investing
3. Bajaj Finance

  • Interest: Around 7.4%–7.75% (recent hike for seniors)
  • Well-known NBFC with strong credit rating
4. mahindra Finance

  • Interest: Around 7.5%–8%
  • Focus on rural and vehicle finance segment
5. PNB Housing Finance

  • Interest: Around 7.5%–8.1%
  • Backed by strong institutional presence
6. lic Housing Finance

  • Interest: Around 7.4%–7.9%
  • Trusted PSU-linked housing finance NBFC
📈 NBFC FD vs bank FD

Feature

NBFC FD

Bank FD

Interest Rate

Higher (6.5%–9%)

Lower (5.5%–7.5%)

Risk Level

Medium

Low

Insurance

Not always DICGC-covered

Up to ₹5 lakh insured

Returns

Higher

Stable but lower

⚠️ Important Risks to Know

Before investing in NBFC FDs:

  • Not all NBFCs are government-backed
  • Credit rating (AAA/AA) is very important
  • Premature withdrawal rules may be stricter
  • No full protection like bank deposits (DICGC limit applies only to banks)
Experts recommend diversifying instead of putting all money in one NBFC.

🧠 Final Takeaway

NBFC FDs can help you earn higher returns than banks, sometimes up to 9%, but they should be chosen carefully based on:

  • Company credit rating
  • Financial stability
  • Investment tenure
A balanced approach is best—combine bank FDs for safety and NBFC FDs for higher returns.

 

Disclaimer:

The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.

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