New Delhi, March 8 -- Non-banking financial companies (NBFCs) offer fixed deposit rates that are usually higher than many traditional bank deposits, with some lenders providing returns of up to 7-8% for select tenures.

However, it is important to note that unlike bank fixed deposits, NBFC deposits are not insured by the Deposit Insurance and Credit Guarantee Corporation, a subsidiary of the Reserve Bank of India (RBI), which provides deposit insurance of up to Rs.5 lakh for bank accounts.

As a result returns, tenures, and credit ratings are key factors for investors comparing NBFC deposit schemes. Companies such as Bajaj Finance, Shriram Finance, and Mahindra & Mahindra Financial Services currently offer competitive rates across differe...