NCD, Corporate FD & Cumulative Bonds
Earn a higher fixed return than a typical bank deposit by lending to highly-rated companies — in exchange for taking on the issuer's credit risk. Returns are fixed; safety depends on the issuer, and these are not deposit-insured.
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.
FD vs NCD — what's the difference?
A Corporate FD is a fixed deposit with a company or NBFC instead of a bank — you earn a fixed rate, but unlike a bank FD it is not covered by deposit insurance. A Secured NCD is a debenture backed by a charge on the issuer's assets, which gives you better recovery priority if the issuer defaults. Both pay a fixed return and both depend on the issuer's credit — the higher rate over a bank FD is your compensation for that risk.
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.
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
Talk to our debt desk
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.