Fixed deposits remain one of the most trusted savings options in India. Many households prefer them because the returns are stable and easy to understand. Money is invested for a fixed time and interest is earned at a predetermined rate. In recent years, another option has attracted attention besides traditional bank deposits. Fixed deposits offered by Non-Banking Financial Companies, commonly known as NBFCs, are gaining popularity because they often provide higher interest rates.
Banks are considered safe and reliable, but their fixed deposit interest rates are usually not very high. Public sector banks mostly offer around 5 percent to 6 percent interest per year, depending on how long the money is kept. Private banks generally give a little higher returns, usually around 6 percent to 6.5 percent.
NBFCs try to attract more investors by offering higher interest rates. In many cases, the return can be about 1 to 2 percent more than bank fixed deposits. Because of this, many people looking for better earnings from their savings look at corporate fixed deposits.
In India, fixed deposit rates in 2026 are different across institutions. The interest rate can range from about 2.6 percent to around 8.6 percent per year depending on the company and deposit period. Senior citizens usually get a little extra interest compared to regular investors.
Several well-known NBFCs provide fixed deposit schemes with competitive returns. These companies are rated by credit rating agencies such as CRISIL or ICRA, which helps investors judge financial strength.
Shriram Finance is one of the largest NBFCs offering fixed deposits. The company provides interest rates between about 7.85 percent and 8.80 percent for investment periods ranging from one year to five years. Additional benefits are available for senior citizens. Some schemes also provide slightly higher returns for women investors.
Bajaj Finance is another major NBFC known for strong credit ratings and stable financial performance. Its fixed deposits offer interest rates that can reach around 6.95 percent annually for regular investors. Senior citizens can earn up to about 7.30 percent. Investment tenures generally range from 12 months to 60 months, giving flexibility to depositors and making it easier to choose a suitable period.
Mahindra Finance provides fixed deposit schemes with interest rates usually ranging between 6 percent and 7 percent annually. The exact return depends on the tenure selected by the investor. Senior citizens receive slightly higher rates, which makes the scheme attractive for individuals looking for steady income from savings.
PNB Housing Finance also offers competitive fixed deposit options. Interest rates are usually around 7 percent or slightly higher depending on the duration of the deposit. Senior citizens receive additional interest benefits. The company has maintained steady deposit rates in recent months, which helped attract investors looking for stable returns.
Muthoot Capital Services is among the NBFCs offering some of the highest FD returns in the market. Interest rates generally range from around 7.9 percent to as high as 8.95 percent depending on the tenure. In certain schemes, senior citizens can earn returns exceeding 9 percent, making it one of the attractive corporate deposit options available now.
Interest rates in the financial sector changed a few times in early 2026. Some lenders updated their FD rates because of market changes and policy decisions. A few banks also increased interest on certain tenures to attract more deposits.
At the same time, many NBFCs are still offering competitive interest rates. Because of these higher returns, more investors are looking at NBFC fixed deposits.
NBFC FDs can give higher returns, but some things should be checked before investing.
Deposits from companies with high credit ratings are usually safer.
Longer deposit periods often give slightly better interest rates.
Withdrawing money early may lead to penalties in some FD schemes.
Investing money in different institutions can help reduce risk.
Fixed deposits are still a popular choice for people who want stable income with low risk. Bank FDs are known for safety, but NBFC fixed deposits often give higher interest.
Many NBFCs now offer interest rates above 7 percent, and some even close to 9 percent. Because of this, corporate fixed deposits are becoming a good option for investors in India.
Comparing interest rates, company reputation, and deposit rules can help investors choose the right FD and earn better returns while keeping money safe.