NCDs vs FDs: Which Gives You Better Returns?
Non-Convertible Debentures (NCDs) are bonds companies sell to raise money from the public. They offer higher interest than FDs but carry more risk. Here's what every Indian investor should know before putting money in.
₹10,000 in an NCD is less than most Indians spend on a family dinner out — yet it earns more than a savings account.
That's all you need to start investing in NCDs as a retail investor
Key Takeaways
Check the credit rating of any NCD before investing — stick to AA or AAA rated instruments if capital safety is your priority.
Calculate your post-tax yield: if you're in the 30% tax bracket, subtract 30% from the coupon rate to find your real return and compare it with FD rates.
Assess your liquidity needs before applying — NCDs have fixed tenors and secondary market trading can be thin, so only invest money you won't need urgently.
Non-Convertible Debentures (NCDs) are bonds companies sell to raise money from the public. They offer higher interest than FDs but carry more risk. Here's what every Indian investor should know before putting money in.
Here's what happened: Indel Money, an NBFC focused on gold loans, is planning to raise up to ₹500 crore by issuing Non-Convertible Debentures (NCDs) to the public.. Retail investors can participate with a minimum application of ₹10,000, making it accessible to ordinary savers looking beyond bank FDs.. NCD public issues are regulated by SEBI and must carry a credit rating — investors should check the rating carefully before applying..
What you should do: Check the credit rating of any NCD before investing — stick to AA or AAA rated instruments if capital safety is your priority.. Calculate your post-tax yield: if you're in the 30% tax bracket, subtract 30% from the coupon rate to find your real return and compare it with FD rates.. Assess your liquidity needs before applying — NCDs have fixed tenors and secondary market trading can be thin, so only invest money you won't need urgently..
Pro tip: Apply in the first few days of an NCD issue — popular tranches close early, and allotment is often on a first-come, first-served basis for retail applicants.
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- [1]“Indel Money planning to raise up to ₹500 cr via public issue of NCDs” Latest Money & Banking, Financial News Today - news | The HinduBusinessLine · 12 Aug 2026
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