Muthoot Capital Services and Manipal Housing Finance are leading India’s fixed deposit market with rates reaching 8.50%, prompting investors to assess safety alongside attractive returns amid a competitive NBFC landscape.
Muthoot Capital Services and Manipal Housing Finance are offering some of the highest fixed deposit rates among non-banking financial companies in India, with returns reaching 8.50% on selected three- and five-year tenures, according to Business Today. The comparison also shows that several other NBFCs, including Bajaj Finance, PNB Housing Finance and Sundaram Finance, are quoting rates that remain competitive but generally sit below the top end of the market.
Business Today’s table places Manipal Housing Finance at 8.25% for one- and three-year deposits, while Muthoot Capital Services leads on longer tenures with 8.50% for three- and five-year placements. The same comparison shows Sundaram Finance offering as much as 8.07% on three-year deposits, with Bajaj Finance topping out at 7.30% and PNB Housing Finance at 7.10%.
The appeal of these rates has also drawn attention to the broader fixed deposit market, where small finance banks are offering similarly high or higher returns on certain tenures. According to the same report, Suryoday Small Finance Bank and Utkarsh Small Finance Bank are among the lenders quoting rates above 8% on selected deposits, underscoring how competitive the search for yield has become across India’s deposit market.
But the headline rate is only part of the decision. Investors should also check the NBFC’s credit rating, financial strength, tenure, whether the payout is cumulative or non-cumulative and the rules for early withdrawal. Unlike bank fixed deposits, NBFC deposits are not covered by the Deposit Insurance and Credit Guarantee Corporation, so safety and stability matter as much as yield. For senior citizens, the extra rate on offer can improve returns, but tax on interest should also be included when comparing options such as debt mutual funds and bonds. The report also notes that rates can change without notice, making it sensible to confirm the latest offer directly with the lender before investing.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
