Knowledge Centre
What you need to understand before comparing yields — in plain language.
What are bonds?
Fixed income instruments issued by companies or governments — you give money and get regular interest plus principal back at maturity.
Bonds vs FD?
Higher potential returns and tradability; FDs lock you into one bank with exit penalties.
What is YTM?
Total annualised return if held till maturity, combining interest income and any capital gain or loss.
How safe are bonds?
Depends on credit rating and issuer quality; government bonds are safest.
What is a credit rating?
Risk indicator from AAA to D, assigned by SEBI-accredited rating agencies like CRISIL, ICRA and CARE.
How do I buy bonds?
Either through your existing broker or demat account on NSE or BSE, or via an OBPP, which requires creating a separate account.
Can I sell before maturity?
Yes, on the exchange, just like equity; price may differ from face value.
How are bonds taxed?
Interest income is taxed at slab rate. Capital gains are taxed at LTCG (12.5%, over 12 months holding) or STCG (at slab rate, under 12 months holding).
What is accrued interest?
Interest earned but not yet paid; it is added to the clean price to form the traded (dirty) price.
What is coupon rate?
The fixed annual interest rate the issuer pays on the bond's face value.
What is a zero-coupon bond?
No periodic interest — all returns are paid as a lump sum at maturity.
Clean price vs dirty price?
Clean price excludes accrued interest; dirty price, which is what you actually pay, includes it.
Minimum investment amount?
₹100 for government securities and ₹1,000 for corporate bonds.
Do I need an OBPP account?
No. You can buy bonds directly from NSE or BSE using your existing equity broker without any OBPP.
NSE/BSE vs OBPP — which is better?
Exchanges offer transparent pricing, guaranteed settlement and zero commission; OBPPs sell from their own inventory at a margin.
Why is my payout lower than the quoted yield?
Your yield is fixed and does not change. However, TDS is deducted on interest payments, which can be claimed when filing returns.
Secured vs unsecured bonds?
Secured bonds are backed by specific issuer assets; unsecured bonds (debentures) are not.
What are callable bonds?
The issuer can redeem early, usually when rates fall — coupons stop once called.
What are convertible bonds?
They can convert into a fixed number of the issuer's equity shares.
What risks do bonds carry?
Mainly credit (default) risk, plus liquidity, interest-rate and reinvestment risk if sold early.
Will I get my money back if the issuer defaults?
Not guaranteed — secured holders get a priority claim on collateral, but recovery is not certain or immediate.
How do I choose which bond to invest in?
Compare rating, tenure and YTM; then check security type, liquidity and issuer financials.
How do I receive payouts?
Interest and principal are credited directly to your demat-linked bank account per the payout schedule.
What happens at maturity?
Principal plus final interest is auto-credited to your bank account — no action needed.
Is TDS deducted on bond interest?
Yes, 10% TDS, adjustable against your total tax liability via Form 16 or 26AS.
Can I get zero or lower TDS?
Yes, by submitting Form 121 if your income is below the taxable threshold.
Are there tax-saving bonds?
Yes. 54EC bonds save LTCG tax on property-sale gains, with a ₹50 lakh cap and a five-year lock-in.
Are tax-free bonds really tax-free?
Interest is fully exempt; only capital gains on early sale are taxed.
How do I report bond income in ITR?
Interest under “Income from Other Sources”; capital gains under the “Capital Gains” section.
Bond price vs yield relationship?
Inversely related — price up means yield down, and vice versa.
What are the main types of bonds?
G-Secs, SDLs, PSU bonds, corporate bonds, tax-free bonds, SGBs, and convertible and callable bonds.
Who should invest in bonds?
Anyone wanting fixed, predictable returns — individuals, HUFs, trusts and corporates alike.
How much of my portfolio should be in bonds?
A commonly followed principle is a fixed-income percentage roughly equal to your age.
Can I invest in multiple bonds?
Yes — you can hold several bonds and sell them individually.
Important disclosures
This platform is purely an information aggregator and data directory. We do not provide investment advice, financial planning, or execution services. We do not onboard clients, hold funds, or execute trades. All data is sourced from public feeds or third-party platforms for educational purposes only. Investments in securities are subject to market risks including delays and/or default in payment. Please read all related documents carefully before investing. Past performance is not indicative of future returns.
Bond prices and yields are observed from broker platforms or market sources and may change before execution. Availability, quantity, settlement terms and final yield must be confirmed on the selected broker's platform. This platform does not guarantee execution at the displayed price or yield.
Not a recommendation: information here is factual comparison only and is not investment advice or a recommendation to buy, sell or hold any security.
Broker relationships: We have no commercial, referral or revenue-sharing arrangement with any platform shown. Listing order is not paid placement.