Bonds & Corporate FDs
Bonds and corporate fixed deposits are loans you make to governments, banks or companies. Understand who owes you, when interest is paid, how you can exit, and what could put your capital at risk.
Terms vary by issue. Read the offer document or term sheet before investing.
A bond’s value depends on the issuer’s ability to pay and on interest rates: when rates rise, the prices of existing bonds usually fall. A higher yield usually reflects higher risk.
Bonds and corporate FDs work differently. Listed bonds sit in your demat account and can be sold before maturity, though buyers and prices vary. Corporate FDs are not traded; early withdrawal depends on the deposit’s terms and usually carries a penalty.
By buying a bond or placing a deposit with the issuer.
At a fixed or floating rate: monthly, quarterly, yearly or at maturity.
Your principal at maturity, if it pays as promised.
Sell listed bonds on the exchange, subject to demand; FDs may allow early withdrawal with a penalty.
Same idea, different borrowers: you lend, they pay interest and repay as agreed. Terms vary by issue.
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The interest rate is only part of the picture. Before you invest, check:
This is general information, not an assessment of your suitability, which depends on your circumstances and the specific scheme or product.
Regulation and credit ratings do not guarantee repayment or returns.
We understand your goals, time horizon, existing holdings and comfort with risk.
We set out relevant options from regulated providers, with costs, liquidity and risks side by side.
Once you decide, we help with KYC, paperwork and onboarding with the provider.
Supported holdings appear in our app, and we review them with you as markets and life change.
You decide whether to invest, in what, and on what terms. How we are paid for each product is disclosed before you invest. See how we’re paid →
Short answers to what families ask us most. For anything specific to your situation, talk to us.
Yes. You can lose money if the issuer delays or defaults, or if you sell a bond before maturity at a lower price than you paid.
No. A rating is the agency’s opinion of credit risk at a point in time, and it can be downgraded.
Bank FDs are covered by deposit insurance (DICGC) up to ₹5 lakh per depositor per bank. Corporate FDs are not, and usually pay more because they carry more credit risk.
Listed bonds can be sold on the exchange, subject to demand, at the market price. Corporate FDs may allow early withdrawal, usually with a penalty.
Mainly because of interest rates and the issuer’s credit quality. If rates rise after you buy, newer bonds pay more, so your bond’s price falls; the reverse also applies.
The annual return you would earn if you bought the bond at today’s price, held it to maturity and the issuer paid everything as promised.
For listed bonds, yes. Corporate fixed deposits do not need one.
Interest is generally taxed at your income-tax slab rate; tax-free bonds are an exception. Gains on selling depend on the bond and how long you held it. Please consult your tax adviser.
We’ll explain the options and trade-offs. You decide.
Bonds and corporate FDs carry credit, interest-rate and liquidity risks. Read the offer documents carefully before investing.
