Among NBFCs, Muthoot Capital Services Ltd. stands out with an annual interest rate of 8.95 per cent for a three-year deposit.
The rate cuts, initiated by financial firms following the RBI’s 25 basis point reduction in the repo rate to 6.25 per cent, aim to stimulate borrowing and investment. Home, personal and business loans are now expected to become more affordable, as equated monthly instalments (EMIs) may reduce. For some borrowers, this could also translate to shorter loan tenures if EMIs are kept constant.
Meanwhile, fixed deposit (FD) investors—particularly senior citizens—continue to enjoy relatively high interest rates from leading NBFCs and housing finance companies. A comparative snapshot of FD offerings shows a wide range of annualised returns, especially over the three- and five-year tenures.
Top FD Rates: Opportunities for Savers
Senior Citizen Benefits
Fixed Deposit Rates of Financial Companies (As of June 2025)
| Company | Credit Rating | Interest Rate (p.a.) | One-Year | Three-Year | Five-Year | Highest Rate Slab | Applicable Tenure | Senior Citizen Benefit |
|---|---|---|---|---|---|---|---|---|
| Shriram Finance* | ICRA – AA+ (Stable), IND AA+/Stable – India Ratings | 8.09% | 7% | 8% | 8% | 36 months & 50 months (JUBILEE), 5 years | 36, 50 months; 5 years | 0.50% |
| Mahindra Finance | CRISIL – AAA/Stable, IND AAA/Stable – India Ratings | 7.45% | 7% | 7% | 7% | 24 months | 2 years | 0.10% – 0.25% |
| Manipal Housing Finance | ACUITE – A | 8.25% | 8% | 8% | 8% | 1, 2, 3 years | 1–3 years | 0.25% |
| PNB Housing Finance | CRISIL – AA+ (Stable), CARE – AA+ (Stable) | 7.65% | 7% | 8% | 8% | 36 – 47 months | 3–4 years | 0.25%** |
| Sundaram Home Finance | CRISIL – AAA/Stable, ICRA – AAA/Stable | 7.65% | 7% | 8% | 8% | 4 years; 5 years | 4–5 years | 0.35% – 0.50% |
| Muthoot Capital Services | CRISIL – A+/Stable | 8.95% | 8% | 9% | 9% | 36 months | 3 years | 0.25% |
| ICICI Home Finance | CRISIL – AAA/Stable, ICRA – AAA/Stable, CARE – AAA/Stable | 7.65% | 7% | 8% | 8% | 39, 45 months | ~3.25 to 3.75 years | 0.25% |
| Can Fin Homes Ltd. | ICRA – AAA/Stable | 8.00% | 7% | 8% | 7% | 3 years | 3 years | 0.50%*** |
| Bajaj Finance Ltd.# | CRISIL – AAA/Stable, ICRA – AAA/Stable | 6.95% | 7% | 7% | 7% | 24 – 60 months | 2–5 years | 0.35% |
| LIC Housing Finance Ltd.** | CRISIL – AAA/Stable | 7.35% | 7% | 7% | 7% | 3 years; 5 years | 3 & 5 years | 0.25% |
Source: Paisabazaar.com
Notes:
- Senior citizen benefits are additional to the base interest rate.
- Tenures and rate slabs vary by company policy and may change based on regulatory updates.
- Jubilee schemes like those offered by Shriram Finance often have special terms and may require specific eligibility.
The RBI’s recent policy stance has ushered in a period of more accessible borrowing and slightly moderated, yet still lucrative, saving opportunities. While borrowers can expect relief in EMIs, fixed income investors—especially seniors—can lock in higher FD rates before the broader rate environment softens further.
