Overview
Fixed deposits and bonds are low-risk investment instruments offering predictable returns. FDs provide guaranteed interest rates for a fixed tenure, while bonds are debt securities issued by governments or corporations. Both are ideal for capital preservation and steady income generation.
Explore Bond Investment Opportunities
Access corporate bonds, government securities, and tax-free bonds with competitive yields
Corporate bonds • Government securities • Tax-free bonds • Competitive yields
Who Should Invest?
✓ Ideal For:
- •Conservative investors
- •Retirees seeking regular income
- •Short to medium-term goals (1-5 years)
- •Emergency fund parking
- •Risk-averse individuals
- •Capital preservation focus
✗ Not Suitable For:
- •High growth seekers
- •Long-term wealth creation (10+ years)
- •Those needing liquidity (lock-in period)
- •Inflation-beating returns seekers
Why Invest in FDs/Bonds?
Capital Safety
Principal amount protected, no market risk
Guaranteed Returns
Fixed interest rate known upfront
Regular Income
Monthly/quarterly interest payouts available
Tax Benefits
Tax-saver FDs offer 80C deduction up to ₹1.5L
Loan Facility
Borrow against FD without breaking it
Flexible Tenure
7 days to 10 years options available
Recommended Portfolio Allocation
Core holding for stability and income
Balance with equity for diversification
Emergency fund and short-term goals
Risk & Returns
Risk Factors
- Interest Rate Risk: Bond prices fall when rates rise
- Inflation Risk: Real returns may be negative
- Liquidity Risk: Premature withdrawal penalties
- Credit Risk: Corporate bonds may default
- Reinvestment Risk: Lower rates at maturity
Expected Returns
- Bank FDs: 6-7.5% p.a.
- Corporate FDs: 7-9% p.a. (higher risk)
- Government Bonds: 6.5-7.5% p.a.
- Corporate Bonds: 8-10% p.a.
- Tax-free Bonds: 5-6% p.a. (tax-free)
*Rates vary based on tenure and issuer
Types of Fixed Income Products
Bank Fixed Deposits
Safest option, DICGC insured up to ₹5 lakhs per bank
Corporate Fixed Deposits
Higher returns but check credit rating (AAA/AA preferred)
Government Bonds (G-Secs)
Sovereign guarantee, zero default risk, tradeable
Corporate Bonds
Issued by companies, higher yield than G-Secs
Tax-Free Bonds
Interest exempt from tax, issued by PSUs
RBI Floating Rate Bonds
Interest rate linked to NSC, protection against rate changes
Key Considerations
Laddering Strategy
Invest in multiple FDs with staggered maturities for liquidity
Senior Citizen Benefits
Extra 0.25-0.5% interest rate for 60+ age
Cumulative vs Non-Cumulative
Cumulative for higher returns, non-cumulative for regular income
TDS Deduction
10% TDS if interest exceeds ₹40K (₹50K for seniors)
Secure Your Capital with Fixed Income
Explore safe investment options with guaranteed returns.
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