IDFC First Bank

This bank offers you an interest rate of 8.5 per cent on its 2-year deposit. The interest rate for senior citizens on the same tenure is 9 per cent.

This is probably the highest from any commercial bank in the country.

The 1 year 1 day - less than 2 years deposit fetches an interest rate of 7.75 per cent, which is not bad at all.

However, we suggest that individuals go in for the longer term tenures, given that interest rates are expected to decline in the coming days.

The bank has branches across the country and one can also avail an online facility for opening a bank account.

Bajaj Finance

Bajaj Finance offers you an interest rate of 8.60 per cent on its 36 to 60 month deposit.

The interest rate for senior citizens is an additional 0.35 per cent, which thus takes the interest rates for this category of investors to 8.95 per cent, which is not bad at all.

There is also a special tenure of deposit of 15-months, where the interest rate is 8.05 per cent. However, the minimum amount payable here is Rs 1 lakh.

The FDs here are rated AAA and hence can be considered as relatively safe. 

Go for a longer tenure of the FDs, given that interest rates are likely to fall in the coming days.

KTDFC

This is a government of Kerala owned entity that offers an interest rate of 8.50 per cent on its fixed deposits.

The interest rate offered here is across 1, 2 and 3 year tenures. Senior citizens are entitled to an extra 0.25 per cent, which takes the interest rate to as much as 8.75 per cent.

Interestingly, the yield moves upto to 9.96 per cent over the three years, for senior citizens and 10.55 per cent over a period of 5 years.

This is a very safe deposit, as the same is guaranteed by the Government of Kerala. It is important to note that there would be a TDS deduction in case the interest deducted is over and above Rs 5,000.

Mahindra Finance

Mahindra Finance offers you an interest rate of 9 per cent, which is probably amongst the highest from an NBFC with a strong pedigree and which has a AAA rating.

The interest of 9 per cent is only for investors who apply for the fixed deposit online for 33 months and 40 months. For those making an application physically, the interest rate on the above mentioned tenures drops to 8.85 per cent.

Shriram City Union

This is a AAA rated fixed deposit, which yields an interest rate of 9 per cent for 3-years. This is not a bad rate of interest at all, considering that interest rates have been falling in the last few months.

However, one must not that NBFC deposits are relatively unsafe and hence investors should exercise some caution before investing.