Bonds
Bonds for steady,predictable income.
From sovereign RBI bonds to tax-saving 54EC bonds and high-quality corporate issues — fixed income that keeps your plan on an even keel.
What we offer
Five waysto earn fixed income.
Each suits a different need — safety, tax saving, regular income or a slightly higher yield.
- 01
RBI Floating Rate Savings Bonds
Issued by the Government of India through RBI. Seven-year tenure; the rate is linked to the NSC rate (plus 0.35%) and reset every six months, with interest paid half-yearly.
- 02
54EC Capital Gain Bonds
From REC, PFC and IRFC. Reinvest long-term capital gains from land or buildings within six months to save tax — up to ₹50 lakh a year, with a five-year lock-in.
- 03
Government Securities & T-Bills
Sovereign bonds from 91 days to 40 years, now open to individuals through RBI Retail Direct. Fixed coupons, typically paid every six months.
- 04
Corporate Bonds & NCDs
Bonds from highly rated PSUs and companies for higher fixed income than bank deposits — with credit quality chosen carefully.
- 05
Tax-free Bonds
Long-dated PSU bonds whose interest is fully tax-free, available on the stock exchange — attractive for higher tax brackets.
At a glance
Which bond suits you?
01
RBI Floating Rate Savings Bonds
- Tenure
- 7 years
- Interest
- NSC rate + 0.35%, paid half-yearly
- Tax
- Interest taxable
- Best for
- Maximum safety
02
54EC Capital Gain Bonds
- Tenure
- 5-year lock-in
- Interest
- Fixed, paid annually
- Tax
- Saves LTCG on property; interest taxable
- Best for
- Property sellers
03
Government Securities
- Tenure
- 91 days – 40 years
- Interest
- Fixed coupon, half-yearly
- Tax
- Interest taxable
- Best for
- Sovereign safety
04
Corporate Bonds & NCDs
- Tenure
- 1 – 10 years
- Interest
- Fixed, as per issue
- Tax
- Interest taxable
- Best for
- Higher fixed income
05
Tax-free Bonds
- Tenure
- Long term
- Interest
- Fixed, annual
- Tax
- Interest tax-free
- Best for
- Higher tax brackets
How it works
Choosing bonds,with care.
- 1
Match the purpose
Safety, income, tax saving or yield — each points to a different kind of bond.
- 2
Check quality and terms
Issuer rating, tenure, liquidity and how interest is paid and taxed.
- 3
Invest and track
Applications, demat holdings, interest credits and maturities, handled with you.
Questions
Good toknow.
Are bonds safer than equity?
High-quality bonds are generally far more stable than shares, but they are not risk-free. Credit quality, interest-rate changes and liquidity all matter — sovereign bonds carry the least credit risk.
What happens to bond prices when interest rates change?
Prices move opposite to interest rates. If you hold a bond to maturity, you receive the promised interest and principal regardless of price changes along the way.
Who can invest in 54EC bonds?
Anyone with long-term capital gains from selling land or buildings, who invests within six months of the sale. The exemption is limited to ₹50 lakh in a financial year.
Do I need a demat account?
Not for RBI Floating Rate Savings Bonds or 54EC bonds held in certificate form. Corporate and tax-free bonds bought on the exchange need a demat account.
Bond investments are subject to credit, interest-rate and liquidity risks. Terms, rates and eligibility are set by the issuer and may change; read the offer document before investing. The information on this website is for general educational purposes only and does not constitute investment, tax or legal advice. Please consult a qualified professional before making financial decisions.
Let’s Plan Your Next Chapter
Your dreamsdeserve a plan.
Let’s understand where you are today, where you want to go and how we can help you plan the journey ahead.