NBFC FDs at 8.95%: Is Your Bank FD Losing Money?

Bank FD rates have plateaued around 7%, but select NBFC fixed deposits are now offering up to 8.95% annually. Before you chase higher returns, here's what you need to know about safety, limits, and who should actually invest.

Here's what happened: Several top-rated NBFCs are offering FD interest rates between 8% and 8.95% for tenures ranging from 12 to 36 months in June 2026.. RBI's repo rate cuts in 2025-26 have pushed bank FD rates lower, making NBFC FDs relatively more attractive for fixed-income investors.. NBFCs like Bajaj Finance, Shriram Finance, and Mahindra Finance are among those offering higher rates, often with AAA or AA+ credit ratings..

What you should do: Check the credit rating of any NBFC FD before investing — only consider AAA or AA+ rated issuers to minimise default risk.. Limit your NBFC FD exposure to 10–15% of your total fixed-income portfolio — unlike bank FDs, these are NOT covered by DICGC's ₹5 lakh insurance.. Compare post-tax returns: if you are in the 30% tax bracket, an 8.95% NBFC FD yields roughly 6.27% net — a bank FD or debt mutual fund may match this with less risk..

Senior citizens get an extra 0.25–0.50% on most NBFC FDs. If you're investing for a retired parent, the post-tax yield gap vs bank FDs widens further in their favour.