Every year, thousands of Indian investors lose money to entities that had no legal right to accept their deposit in the first place. RBI’s own Sachet portal names exactly six categories of entities permitted to take public deposits — everyone else is, in RBI’s words, “not legally permissible.” Here is what each category can offer, what regulates them, and how their FD rates actually compare in July 2026.
1. The six entities RBI permits to accept deposits
2. FD interest rate comparison across all categories
3. Which FDs are DICGC-insured — and which aren’t
4. Which type of FD should you choose?
5. Frequently asked questions
1. The Six Entities RBI Permits to Accept Deposits
RBI’s Sachet portal (sachet.rbi.org.in) is unambiguous on this point: it is not legally permissible for any entity outside this list to accept public deposits. If someone offering you a “guaranteed return scheme” doesn’t fall into one of these six categories, that is your first red flag.
| Sr. No | Category | Regulator | Who Can Deposit |
|---|---|---|---|
| 1 | Commercial & Cooperative Banks | Reserve Bank of India (RBI) | General public |
| 2 | Non-Banking Finance Companies (NBFCs) | RBI | General public — but only a few RBI-listed NBFCs are authorised |
| 3 | Housing Finance Companies (HFCs) | National Housing Bank (NHB) | General public — only a few NHB-listed HFCs are authorised |
| 4 | Other Companies | Ministry of Corporate Affairs (MCA) | General public, only up to limits under Companies (Acceptance of Deposit) Rules, 2014 |
| 5 | Cooperative Credit Societies | Registrar of Cooperative Societies (RCS) | Voting members only |
| 6 | Multi State Cooperative Societies | Central Registrar of Cooperative Societies | Voting members only |
Categories 5 and 6 are often confused with each other, but the distinction is straightforward: a Cooperative Credit Society operates within a single state and is registered and regulated by that state’s own Registrar of Cooperative Societies (RCS) under the respective State Cooperative Societies Act. A Multi State Cooperative Society, by contrast, operates across more than one state and therefore falls under the Multi State Cooperative Societies Act, 2002, with the Central Registrar of Cooperative Societies as its regulator instead of any individual state’s RCS. Both categories share the same core rule — deposits are limited to voting members only — but which regulator has jurisdiction depends entirely on whether the society’s operations are confined to one state or span multiple states.
2. FD Interest Rate Comparison Across All Categories (July 2026)
Here is how actual returns stack up once you move from the safest category (banks) to the higher-risk, higher-reward categories (NBFCs, HFCs, companies). All rates below are indicative annual rates for general (non-senior) citizens on cumulative options, verified from issuer and aggregator sources in July 2026.
Bank FDs (Category 1)
Bank FD rates vary meaningfully even within the “safe” category, since DICGC insurance covers all of them equally up to Rs 5 lakh — so the rate difference is pure upside with no corresponding drop in that base safety net. Here is a wider comparison across PSU banks, private banks, and small finance banks, sourced from BankBazaar, ClearTax, and Paisabazaar, cross-checked against news coverage as of July 2026.
| Bank | General Citizen Rate (Peak) | Senior Citizen Rate (Peak) | Category |
|---|---|---|---|
| Bank of Baroda | 6.75% (555-day BoB Golden Goal scheme) | up to 7.25% | PSU |
| Punjab National Bank (PNB) | 6.60% | up to 7.10% | PSU |
| Bank of India | 6.85% | up to 7.75% | PSU |
| Punjab & Sind Bank | 6.85% | up to 7.35% | PSU |
| Indian Bank | 6.80% | +0.75% for super seniors (80+) on select tenures | PSU |
| Central Bank of India | 6.70% | up to 7.20% | PSU |
| Bank of Maharashtra | 6.65% | up to 7.15% | PSU |
| Canara Bank / Indian Overseas Bank / UCO Bank | up to 6.60% | up to 7.10%–7.35% (IOB offers +0.75% to super seniors) | PSU |
| State Bank of India (SBI) | 6.45% (444-day Amrit Vrishti scheme) | up to 7.05%–7.10% | PSU |
| HDFC Bank | 6.50% (peaks around 3-year tenure) | up to 7.00% | Private |
| ICICI Bank | 6.50% | up to 7.10% | Private |
| Axis Bank | 6.50% | up to 7.25% | Private |
| Bandhan Bank | 7.45% | up to 7.70%–7.95% | Private |
| IDFC First Bank | 7.35% | up to 7.25%–7.50% | Private |
| Yes Bank | 7.25% | up to 7.75%–8.00% | Private |
| RBL Bank | 7.20% | up to 7.70%–7.95% | Private |
| DCB Bank | 7.50% | up to 7.90% | Private |
| Tamilnad Mercantile Bank / City Union Bank | 7.25% | up to 7.50%–7.75% | Private |
| Karnataka Bank | 7.00% | up to 7.50% | Private |
| Federal Bank / Kotak Mahindra / South Indian Bank / Karur Vysya / IDBI | 6.50%–6.85% | up to 7.00%–7.80% (Karur Vysya tops this group) | Private |
| Bank | General Citizen Rate (Peak) | Senior Citizen Rate (Peak) | Category |
|---|---|---|---|
| Suryoday Small Finance Bank | 8.10% (30-month tenure) | up to 8.50%–8.75% | Small Finance Bank |
| Utkarsh Small Finance Bank | 8.10% (666-day tenure) | up to 8.30% | Small Finance Bank |
| Shivalik Small Finance Bank | up to 8.10% | up to 8.60% | Small Finance Bank |
| Jana Small Finance Bank | up to 8.00% | up to 8.00%–8.30% | Small Finance Bank |
| Equitas Small Finance Bank | up to 8.00% | up to 8.50% | Small Finance Bank |
| Ujjivan / Unity / Slice Small Finance Bank | competitive, close to 8.00% | up to 8.30%–8.50% | Small Finance Bank |
NBFC / Company FDs (Categories 2 & 4)
| Issuer | Indicative Rate Range | Credit Rating | Senior Citizen Extra |
|---|---|---|---|
| Bajaj Finance | 6.60% – 7.40% | CRISIL FAAA / ICRA MAAA (highest safety) | +0.35% |
| Shriram Finance | 7.00% – 7.60% | ICRA MAA+ (high safety, one notch below AAA) | +0.50% |
| Mahindra Finance | 6.75% – 7.45% | High safety category | +0.20% to +0.35% |
| Muthoot Capital Services | 7.90% – 9.10% | Please verify this information from the latest official source (current CRISIL/ICRA/CARE rating not independently confirmed here) | +0.25% (up to 9.35%) |
| Sundaram Finance | up to 7.15% | High safety category | up to +0.50% |
Housing Finance Company (HFC) FDs (Category 3)
| Issuer | Indicative Rate Range | Credit Rating | Notes |
|---|---|---|---|
| PNB Housing Finance | up to 7.25% | CARE / CRISIL rated | +0.25% for senior citizens; tenures up to 10 years |
| Sundaram Home Finance | up to 7.15% | High safety category | Additional 0.25%–0.50% typically offered to senior citizens |
| LIC Housing Finance | up to 6.90% | High safety category | Minimum deposit Rs 20,000 |
| HUDCO | up to 7.25% | Government-backed entity | May qualify for Section 80C benefit on certain schemes |
Cooperative Credit Society Deposits (Categories 5 & 6)
These deposits are open to voting members of the society rather than the general public, which is the defining feature that sets this category apart from banks, NBFCs, HFCs, and companies. Rates are set independently by each society and commonly range from around 7% up to 9-10% or more, depending on the individual society’s financial position and policies. Because thousands of cooperative societies operate independently across India, there is no single centralised rate table the way there is for banks or listed NBFCs — each society publishes and revises its own rates, so checking directly with the specific society is the standard way to get current figures.
3. Which FDs Are DICGC-Insured — And Which Aren’t
This is the single most misunderstood point among FD investors, and it deserves to be stated plainly:
| Category | DICGC Insured? | Insurance Limit |
|---|---|---|
| Commercial & Cooperative Banks | Yes | Rs 5 lakh per depositor per bank (principal + interest combined) |
| NBFCs | No | Not applicable — relies entirely on issuer’s financial strength |
| Housing Finance Companies | No | Not applicable |
| Other Companies (MCA-regulated) | No | Not applicable |
| Cooperative Credit Societies | No | Primary cooperative societies are explicitly excluded from DICGC cover |
4. Which Type of FD Should You Choose?
| Your Priority | Best-Fit Category |
|---|---|
| Maximum safety, capital protection above all | Large bank FD (PSU or top private bank), within DICGC’s Rs 5 lakh limit per bank |
| Slightly higher rate, still low risk | Small Finance Bank FD (still DICGC insured up to Rs 5 lakh) |
| Higher yield, willing to accept issuer credit risk | AAA/highest-rated NBFC or HFC FD (e.g., Bajaj Finance, PNB Housing) — check rating before investing, not after |
| Highest yield, higher risk tolerance | Lower-rated NBFC/company FD — only with amounts you can afford to have at risk, and only after reading the credit rating rationale, not just the advertised rate |
| Member of a cooperative society | Cooperative society deposit — check current rates and the society’s financials directly with them, since each society sets its own terms independently |
5. Frequently Asked Questions
Q1. Who is legally allowed to accept public deposits in India?
Only six categories, per RBI’s Sachet portal: commercial & cooperative banks (RBI), NBFCs (RBI, select entities only), HFCs (NHB, select entities only), certain companies under MCA rules up to prescribed limits, cooperative credit societies (members only), and multi-state cooperative societies (members only). It is not legally permissible for any other entity to accept public deposits.
Q2. Is a company FD or NBFC FD safe compared to a bank FD?
Company and NBFC FDs are not DICGC-insured. Their safety depends entirely on the issuer’s credit rating and financial health, which is also why they typically pay a higher rate than bank FDs — that extra yield is compensation for the extra risk, not a free lunch.
Q3. Does DICGC insurance cover NBFC or company fixed deposits?
No. DICGC insurance applies only to deposits in RBI-insured banks, up to Rs 5 lakh per depositor per bank. NBFCs, HFCs, companies, and cooperative credit societies fall outside DICGC cover entirely.
Q4. Can a cooperative credit society accept deposits from anyone?
No. Cooperative credit societies and multi-state cooperative societies can only accept deposits from their own voting members — not the general public.
Q5. How can I verify if a company or scheme is authorised to accept deposits?
Check RBI’s Sachet portal (sachet.rbi.org.in), which lists all entities authorised to accept deposits in India and lets you report suspected illegal deposit-taking schemes. For NBFCs specifically, cross-check against RBI’s published list of NBFCs permitted to accept public deposits, since this is a small subset of all registered NBFCs.
Rate data sourced from BankBazaar, ClearTax, Paisabazaar, Policybazaar, Business Standard, BusinessToday, and issuer websites as of July 2026; regulatory framework sourced from RBI Sachet portal (sachet.rbi.org.in) and DICGC (dicgc.org.in). FD rates change frequently — always confirm current rates directly with the issuer before investing.
Deepak Gokul specialises in goal-based financial planning, child education planning, SIP investments, mutual fund advisory, and retirement planning for families across the globe. With his Chartered Wealth Manager (CWM®) certification and specialised training in retirement advisory, Deepak helps clients build long-term wealth through structured, disciplined SIP planning.