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As stock market volatility continues to unsettle investors, many people are once again turning toward fixed deposits for stable and predictable returns. In 2026, fixed deposit schemes offered by Non-Banking Financial Companies (NBFCs) are gaining strong popularity because several companies are offering significantly higher interest rates compared to traditional bank FDs.

With many investors prioritizing capital safety and fixed income, NBFC fixed deposits are emerging as an attractive option for those seeking better returns without direct exposure to equity market risks. Some leading NBFCs are currently offering FD interest rates as high as 8.5%, while senior citizens in select schemes are getting returns close to 9% annually.

NBFC FDs Offering Higher Interest Rates

According to the latest FD rate data, several major NBFCs are currently providing returns that are notably higher than both public and private sector banks. Among the top performers, Muthoot Capital Services is offering up to 8.5% interest on select tenures ranging from 12 to 60 months.

Similarly, Manipal Housing Finance Syndicate Ltd. is offering returns up to 8.25% on deposits with tenures between 12 and 36 months. Sundaram Finance is also attracting investors with FD rates reaching around 7.5% for similar durations.

Other major NBFCs such as Shriram Finance, Bajaj Finance, and PNB Housing Finance are also offering competitive fixed deposit returns compared to many banks.

Top NBFC FD Interest Rates in 2026

Source: Policybazaar and company websites

Banks Continue to Offer Lower FD Returns

Compared to NBFCs, most government and private banks are currently offering lower FD interest rates. State Bank of India is offering a maximum FD interest rate of around 6.45% for regular customers on select tenures. Similar rates are being offered by Bank of Baroda, while Punjab National Bank and Canara Bank are providing returns of up to approximately 6.60%.

This difference in returns is one of the key reasons why investors looking for higher fixed income opportunities are increasingly exploring NBFC deposit schemes.

Why Do NBFCs Offer Higher Interest Rates?

Financial experts explain that NBFCs generally do not have access to low-cost CASA deposits like banks. CASA refers to Current Account Savings Account deposits, which provide banks with relatively inexpensive funding sources. Since NBFCs depend more heavily on market borrowing and customer deposits to raise funds, they often offer higher interest rates to attract investors.

However, experts also caution that higher returns usually come with slightly higher risk. Unlike bank deposits that enjoy broader regulatory comfort, NBFC FDs depend heavily on the financial strength and liquidity position of the company. Therefore, investors should never select an FD solely based on high interest rates.

Senior Citizens Getting Bigger Benefits

Senior citizens are currently among the biggest beneficiaries in the FD market. Most banks and NBFCs are offering additional interest rates ranging between 0.25% and 0.75% above standard FD rates for elderly investors.

In some NBFC schemes, senior citizens are even getting returns exceeding 8.5%, making these deposits a potentially attractive option for post-retirement income planning and stable monthly earnings.

Important Things to Check Before Investing

Investment advisors strongly recommend evaluating multiple factors before investing money into NBFC fixed deposits. Investors should carefully review the company’s credit rating, financial stability, repayment history, liquidity position, and overall market reputation.

Experts also advise against investing all savings into a single FD scheme. Diversifying deposits across multiple institutions can help reduce financial risk and improve overall investment safety.

While NBFC fixed deposits may offer attractive returns in the current environment, investors should balance return expectations with risk management. Choosing highly rated and financially stable institutions remains one of the most important steps for protecting long-term savings.

As interest in safe investment options continues rising amid uncertain market conditions, NBFC fixed deposits are likely to remain a preferred choice for investors seeking higher guaranteed returns without directly entering the stock market.