Retail investors in India are currently navigating a split in deposit interest rates from two major non-banking finance companies (NBFCs). Bajaj Finance, the largest NBFC in the country, has opted to raise its deposit rates by up to 45 basis points, effective from May 1. This adjustment means that deposits with a maturity of 18-30 months will now yield 6.85%, while those with a term of 31-60 months will see an increase to 7.4% from 6.95%. Additionally, senior citizens will receive an extra 35 basis points across all tenures. In contrast, Shriram Finance is set to reduce its deposit rates by 15-35 basis points starting May 6. For example, an 18-23 month deposit will now earn 7%, down from previous rates, while a 36-60 month deposit will offer 7.25%, reflecting a 35 basis points decrease. The company's decision follows a rating upgrade that allows it to borrow at lower costs. Analysts suggest that while both companies are highly rated, Bajaj Finance is preferable for longer-term deposits, whereas Shriram Finance may be better for shorter tenures. Notably, both companies' rates surpass those offered by traditional banks, such as HDFC Bank's three-year deposit rate of 6.5%.