NCD & Corporate FD: Predictable Income for a Steadier Portfolio
Not every rupee needs to chase the market. For the part of your portfolio built for stability and predictable income, Non-Convertible Debentures (NCDs) and Corporate Fixed Deposits (FDs) offer fixed returns from established companies, often at more attractive interest rates than a typical bank FD. GRM Wealth curates NCD investment opportunities in India and corporate FD options from credible, well-rated issuers, so you can earn steady income without losing sleep over market swings.
What Are Non-Convertible Debentures (NCDs)?
An NCD is a fixed-income instrument issued by a company to raise debt that cannot be converted into equity shares. In return for lending the company money for a fixed tenure, you earn a predetermined interest rate, paid monthly, quarterly, annually or at maturity, depending on the issue structure. Many NCDs are also listed on stock exchanges, giving investors the option to exit before maturity, subject to market liquidity.
What Is a Corporate Fixed Deposit?
A corporate FD works much like a bank fixed deposit, except it is issued by a non-banking financial company (NBFC) or a corporate rather than a bank. Corporate FDs often offer a better interest rate than bank FDs, in exchange for taking on the credit risk of the issuing company rather than a bank. Choosing issuers with strong credit ratings is essential when considering a corporate FD.
Non-Convertible Debentures
Invest in high-quality fixed-income papers with flexible tenor and interest/principal payment frequency.
Edelweiss Financial Services Limited
| Series | Payout Freq. | Tenure | Coupon p.a. | Effective Yield | Maturity Amount / NCD |
|---|---|---|---|---|---|
| I | Annual | 24 months | 8.65% | 8.64% | ₹1,000 |
| II | Cumulative | 24 months | — | 8.65% | ₹1,180.75 |
| III | Monthly | 36 months | 8.80% | 9.15% | ₹1,000 |
| IV* | Annual | 36 months | 9.15% | 9.14% | ₹1,000 |
| V | Cumulative | 36 months | — | 9.15% | ₹1,300.70 |
| VI | Monthly | 60 months | 9.21% | 9.60% | ₹1,000 |
| VII | Annual | 60 months | 9.60% | 9.59% | ₹1,000 |
| VIII | Cumulative | 60 months | — | 9.60% | ₹1,581.85 |
| IX | Monthly | 120 months | 9.58% | 10.00% | ₹1,000 |
| X | Annual | 120 months | 10.00% | 9.99% | ₹1,000 |
* Series IV is the default series — allotted when no specific series is indicated. Coupon rates are for NCD holders in Category I, II, III & IV. Rates as per Nuvama Fortnightly Dashboard June 2026. This issue is closed and cannot be subscribed to.
Get better returns than bank FDs
High-quality corporate FDs from AAA-rated issuers — higher yield, higher risk than a bank deposit. Not covered by DICGC deposit insurance.
Bajaj Finance Ltd
CRISIL AAA / ICRA AAA
Shriram Finance Ltd
CARE AAA / CRISIL AAA / ICRA AAA / IND AAA — all Stable
Mahindra Finance Ltd
CRISIL AAA / IND AAA — Stable
Rates indicative as per Nuvama Fortnightly Dashboard, June 2026; subject to change without notice and to issuer availability. Credit ratings issued by respective agencies may change. Read the issuer's offer document before investing. Returns are not guaranteed.
Compounding fixed-income instrument
Lump-sum payout at maturity instead of periodic interest — combining the benefits of compounding with a defined maturity value.
Edelweiss NCD — Cumulative Series
One of the few fixed-income instruments that helps in compounding capital. No interim payments — redeemed at a premium to face value, offering a guaranteed maturity value.
* Taxed at LTCG 12.5% as per E&Y tax note, Apr 2025. Tax treatment subject to change; confirm with your tax advisor. Returns are indicative and not guaranteed. Subject to issuer credit risk.
How Do They Compare?
The headline rate is only part of the picture — here's how the two stack up.
Returns
NCDs and corporate FDs generally offer higher interest rates than a standard bank fixed deposit.
Liquidity
Listed NCDs can potentially be sold on the exchange before maturity; most FDs require premature withdrawal, often with a penalty.
Credit risk
Both carry issuer credit risk, which is why checking the credit rating of the issuing company is essential before investing.
Taxation
Interest from both NCDs and corporate FDs is taxable as per your income tax slab, so plan for this in your post-tax return expectations.
Deposit insurance
Unlike a savings bank account, NCDs and corporate FDs are not covered by deposit insurance schemes, which makes issuer selection important.
Key characteristics
Income Above Bank FDs
Highly-rated issuers typically offer a yield premium over comparable bank fixed deposits.
Secured NCD Options
Secured NCDs carry a charge on the issuer's assets, improving recovery priority — though not a guarantee of payment.
Curated, Rated Issuers
We focus on AAA and high-grade issuers and disclose the rating on every product so you can judge the risk.
Defined Tenure & Payout
Fixed tenures with a known interest rate and a choice of cumulative or periodic payout.
Laddering Across Issuers
Spread allocations across issuers and maturities to diversify credit exposure and reinvestment timing.
Direct Issuer Exposure
You hold a direct claim on the issuer — returns and repayment depend on that issuer's credit.
Bank FD vs Corporate FD vs Secured NCD
The key difference isn't the rate — it's what stands behind your money.
| Factor | Bank FD | Corporate FD | Secured NCD |
|---|---|---|---|
| Typical returns | Lower | Higher | Higher |
| Deposit insurance (DICGC) | Up to ₹5L | Not covered | Not covered |
| What backs it | Bank + RBI oversight | Issuer (often unsecured) | Charge on issuer assets |
| Key risk | Low | Issuer credit risk | Issuer credit risk |
| Liquidity | Premature withdrawal | Premature, with penalty | Sell on exchange (thin) |
| Interest taxed | At slab rate | At slab rate | At slab rate |
How returns are taxed
Interest from corporate FDs and NCDs is taxed as income from other sources at your applicable slab rate. TDS may apply. There is no special concessional rate on interest.
- Sell a listed NCD on the exchange after 12 months → capital gain taxed as LTCG at 12.5% without indexation; within 12 months → at your slab rate.
- Cumulative Coupon Bonds redeemed at maturity premium are taxed at LTCG 12.5% (as per E&Y tax note, Apr 2025).
- For investors in the highest bracket, interest is effectively taxed at 30%+ — so compare post-tax yields, not headline rates.
General information only, not tax advice. Tax treatment depends on your circumstances and may change. Please consult your tax advisor.
How GRM Wealth Chooses NCDs and Corporate FDs for You
We review the issuer's credit rating from agencies such as CRISIL, ICRA and CARE before shortlisting any issue.
We compare NCD interest rates and corporate FD rates across issuers to find competitive, risk-adjusted options.
We check the issuer's debt-to-equity position and repayment track record, not just the headline rate.
We help you ladder maturities across different NCDs and FDs, so your fixed income needs are not concentrated in one tenure or one issuer.
Who Should Invest in NCDs and Corporate FDs?
NCDs and corporate FDs suit investors who want predictable, fixed returns as part of a balanced portfolio — retirees seeking regular income, conservative investors looking to diversify away from equities, and anyone wanting a higher rate of interest than a standard bank FD, provided they are comfortable taking on issuer credit risk.
Risk factors & disclosures
Not covered by deposit insurance
Corporate FDs and NBFC deposits are NOT insured by DICGC. Only bank deposits are covered, up to ₹5 lakh. Your money here relies entirely on the issuer's ability to pay.
Credit / default risk
Repayment of principal and interest depends on the issuer's financial health. A weaker issuer carries a real risk of delay or default.
"Secured" is not risk-free
A secured NCD has a charge on the issuer's assets that improves recovery priority if things go wrong — but it does not guarantee timely or full payment.
Ratings can change
A credit rating is an opinion on creditworthiness at a point in time, not a guarantee. Ratings can be downgraded after you invest.
Interest-rate & reinvestment risk
If rates rise, the value of a listed NCD can fall. At maturity, you may have to reinvest at a lower prevailing rate.
Liquidity risk
Premature FD withdrawal carries a penalty and lower rate. The secondary market for NCDs is thin, so exiting early may be difficult or at a discount.
Fixed income, answered plainly
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Compare current NCD and corporate FD offers with GRM Wealth and build a fixed-income portfolio that pays you predictably. We'll share current rates, tenures, payout options and the credit profile of each issuer — so you can choose with the risk in full view.
Corporate fixed deposits and NCDs are subject to credit and market risk. They are not bank deposits and are not insured by DICGC; repayment depends on the issuer's credit. Interest rates and availability are indicative, sourced from the Nuvama Fortnightly Partners Dashboard (June 2026), and are subject to change without notice. The Edelweiss Financial Services NCD issue details are shown for reference only — that issue closed on 19 June 2026 and cannot be subscribed to. Credit ratings are opinions of the respective rating agencies, are not recommendations to invest, and may be revised at any time. Returns are indicative and not guaranteed — actual returns depend on market conditions. This page is for general information only and does not constitute investment, legal or tax advice. Please read the issuer's offer document / information memorandum and all related documents carefully before investing.