Archive · 8 Aug 2026
NBFC FD Rates 2026: Muthoot Capital, Manipal Lead At 8.50%
A fixed deposit is like putting your money in a special piggy bank that grows a little bigger every year.
This news is about companies called NBFCs in India that have such piggy banks.
Muthoot Capital Services grows your money the most, giving 8.50% a year if you leave it for three or five years.
Manipal Housing Finance gives 8.25%, and Sundaram Finance gives up to 8.07%.
Some small banks, like Suryoday and Utkarsh, also give up to 8.10%.
But there is a catch: money kept with an NBFC is not protected by the government's deposit safety net like bank deposits are.
Senior citizens can earn extra interest at many banks.
The RBI, India's central bank, wants all these companies to follow the same interest rate rules.
That would make borrowing and saving more predictable for everyone.
Before putting money in, smart investors check the company's safety rating, not just the big reward.
Muthoot Capital Services offers the highest NBFC FD rate at 8.50% for three- and five-year tenures.
Manipal Housing Finance offers 8.25% for one- and three-year deposits, while Sundaram Finance pays up to 8.07% on three-year deposits.
Among small finance banks, Suryoday SFB and Utkarsh SFB offer the highest rates at 8.10%.
Unlike bank deposits, NBFC fixed deposits are not covered by DICGC deposit insurance.
The RBI is likely to harmonise interest rate rules across NBFCs, housing finance companies and microfinance institutions.
- Who
- Investors comparing fixed deposit options, and the Reserve Bank of India (RBI), whose harmonisation plan affects NBFCs, housing finance companies and microfinance institutions.
- What
- A comparison of 2026 NBFC and small finance bank fixed deposit rates, with Muthoot Capital Services offering the highest NBFC rate of 8.50% and the RBI planning to harmonise interest rate rules.
- When
- 2026
- Where
- India
- Why
- To help investors find better returns while the RBI moves to improve monetary transmission and borrower transparency.
- Highest NBFC FD rate
- 8.50% (Muthoot Capital Services, 3- and 5-year tenures)
- Manipal Housing Finance rate
- 8.25% (1- and 3-year tenures)
- Sundaram Finance rate
- Up to 8.07% (3-year tenure)
- Highest small finance bank rate
- 8.10% (Suryoday SFB and Utkarsh SFB)
- Bajaj Finance rate
- Up to 7.30% (5-year tenure)
- Shriram Finance rate
- 7.60% (3- and 5-year tenures)
- Deposit insurance
- NBFC FDs are not covered by DICGC insurance, unlike bank deposits
- RBI harmonisation
- Likely standardised rate-reset rules: external benchmark loans reset at least every 3 months; internal benchmark within a year