Corporate Fixed Deposits, Bonds, NCD’s
Corporate Fixed Deposits, Bonds, and Non-Convertible Debentures (NCDs) are popular fixed-income investment options that provide investors with stable and predictable returns. Corporate Fixed Deposits are offered by companies, NBFCs, and housing finance companies, where investors deposit funds for a fixed tenure and earn interest at predetermined rates. Bonds are debt securities issued by governments, public sector undertakings, financial institutions, or corporations to raise capital, offering periodic interest payments and repayment of the principal at maturity. Non-Convertible Debentures (NCDs) are fixed-income debt instruments issued by companies that cannot be converted into equity shares and generally offer higher interest rates than traditional fixed deposits, with returns varying based on the issuer's credit rating and market conditions. These investment options are suitable for investors seeking regular income, capital preservation, and portfolio diversification, while the associated risks depend on the issuer's financial strength and creditworthiness.
Explore Available Options
Discover options designed to help you plan and manage your finances better.
Cumulative Fixed Deposit
In this type, interest is compounded annually or quarterly and paid at the time of maturity along with the principal amount. It suits investors who prefer a lump-sum payout at the end of the term.
Non-Cumulative Fixed Deposit
Interest is paid out at regular intervals — monthly, quarterly, half-yearly, or annually — depending on the investor’s preference. It is ideal for those looking for regular income.
Short-Term Corporate FD
Offered for a shorter duration, generally ranging from 6 months to 2 years. It provides liquidity along with steady returns.
Long-Term Corporate FD
These deposits come with longer tenures, typically ranging from 3 to 5 years or more, and may offer slightly higher interest rates compared to short-term options.
Corporate Bonds
Issued by corporations, these offer higher interest rates but come with slightly higher risk.
Government Bonds
Offered by the government, these bonds are considered one of the safest investments.
Municipal Bonds
Issued by local governments, these bonds may offer tax benefits.
Secured NCDs
These are backed by the company's assets as collateral. If the issuer defaults on repayment, investors have a claim on the pledged assets, making secured NCDs relatively safer.
Unsecured NCDs
These are not backed by any collateral or specific assets. Repayment depends entirely on the issuer's financial strength and creditworthiness.
Why Choose This Service
Explore the unique advantages this service provides.
Fixed Interest Returns
Investors receive a predetermined rate of interest throughout the investment tenure, ensuring predictable income.
Flexible Tenure Options
Depositors can choose tenures based on their financial goals, typically between 6 months and 5 years.
Varied Interest Payout Options
Choose between cumulative (payout at maturity) or non-cumulative (periodic payout) options to suit individual preferences.
Higher Interest Rates
Corporate FDs often offer slightly higher interest rates compared to traditional bank deposits, depending on the issuing company’s credit rating.
Credit Ratings
Each FD is rated by agencies such as CRISIL, ICRA, or CARE, helping investors assess the credibility and repayment capacity of the company.
Premature Withdrawal Facility
Some issuers allow premature withdrawal after a certain period, subject to specific terms and penalties.