NaBFID Zero-Coupon Bonds: Is Your ₹10K Worth It?

NaBFID is issuing zero-coupon bonds worth ₹20,000 crore. You invest at a discount today and get the full face value back after 10 years — no regular interest, but a fixed guaranteed return. Here's what that means for your money.

Here's what happened: NaBFID — India's infrastructure finance institution — has launched ₹20,000 crore worth of zero-coupon bonds with a 10-year maturity period.. Unlike regular bonds, these pay no periodic interest; instead, you buy them below face value and receive the full maturity amount at the end of 10 years.. Tax treatment follows capital gains rules since there is no interest income — meaning long-term indexation benefits may apply after the holding period..

What you should do: Calculate your effective annualised return: divide the difference between issue price and maturity value over 10 years to compare against FD or PPF rates.. Check your tax slab before investing — if you are in the 30% bracket, the capital gains route on these bonds may save more tax than a taxable FD.. Confirm the bond's listing status on BSE or NSE so you have an exit option before maturity if your financial situation changes..

Zero-coupon bonds suit investors who don't need regular income — like someone saving for a child's college fees in 2035. The compounding happens silently with no reinvestment risk.