NBFC FD rates 2026: Muthoot Capital, Manipal Housing offer up to 8.50%; check top rates

Fixed deposits (FDs) offered by Non-Banking Financial Companies (NBFCs) are attracting investors looking for potentially higher interest rates than those available on several traditional bank deposits. In 2026, leading NBFCs are offering FD interest rates of around 6.70% to 8.50% per annum for general citizens, depending on the tenure and deposit amount. Senior citizens may receive an additional interest rate of around 0.25% to 0.50% in several schemes.

However, NBFC fixed deposits differ from bank FDs in terms of risk, deposit insurance and credit ratings. Investors should therefore consider the financial strength and credit rating of the NBFC, besides comparing the interest rate, tenure and premature withdrawal rules.

Top NBFC FD Interest Rates

The following table compares selected NBFCs based on their indicative rates for deposits below and above Rs 2 crore across different tenures.

Muthoot Capital Services offers the highest rate among the listed NBFCs, at 8.50% for three- and five-year deposits. Manipal Housing Finance offers 8.25% for one- and three-year tenures, while Sundaram Finance offers rates of up to 8.07% for three-year deposits.

Bajaj Finance offers up to 7.30%, while Shriram Finance offers 7.60% for three- and five-year deposits. PNB Housing Finance offers 7.10% for both three- and five-year tenures.

Banks vs NBFCs: FD Rates

Investors can also compare these rates with those offered by banks. Small finance banks are among the institutions offering relatively high FD rates, with some offering rates of 8% or more on selected tenures.

What should investors check?

A higher interest rate does not automatically mean a better FD. Investors should examine the NBFC's credit rating, financial position, tenure, cumulative or non-cumulative payout option and premature withdrawal conditions before investing.

Unlike bank deposits, NBFC fixed deposits are not covered by the Deposit Insurance and Credit Guarantee Corporation (DICGC) deposit insurance framework. Therefore, investors should not compare an NBFC FD solely on the basis of the headline interest rate.

For senior citizens, the additional interest offered by the institution can improve the effective return. However, taxability of FD interest should also be considered when comparing post-tax returns with alternatives such as debt mutual funds, bonds or other fixed-income instruments.

Investors should also verify the latest rates directly with the respective institution before booking a deposit, as FD interest rates can change without notice.

Uniform rates

The RBI is likely to harmonise interest rate rules across regulated lenders, including NBFCs, housing finance companies and microfinance institutions, to improve monetary transmission and borrower transparency. The proposed framework could require NBFCs to adopt recognised external or formal internal benchmarks for floating-rate retail and MSME loans instead of internal prime lending rates.

It may also standardise rate-reset timelines, with external benchmark-linked loans potentially resetting at least every three months and internal benchmark-linked loans within a year. The move is expected to reduce pricing discretion, ensure faster transmission of policy-rate changes and make borrowing costs more predictable for customers.