For generations, Indians have preferred to invest in fixed deposits. But interest rates have fallen to record lows ever since Covid struck.
This fall in bank FD rates has made it difficult to meet the regular cash flow needs. Bonds typically have a higher coupon and yield better returns compared to Bank FDs.
Are you someone who is open to a better way of investing? If yes, then bonds could just be the solution that you need.
Bonds are fixed-income securities issued by borrowers such as governments and corporations to raise money from investors.
Bonds are versatile and offer multiple layers of safety!
An excellent way to earn fixed returns that are 2 to 3% higher than FDs and ensure capital protection is to invest in bonds.
Bond returns are not subject to TDS.
Additionally, bonds can generate regular cash flows, earn capital appreciation, and save long term capital gains tax
Our goal is to help you make wise financial decisions based on your investment priorities.
At EldersWealth, we look at the specific requirements of our clients, and recommend bonds based on issuer profiles and ratings – we have a robust system of checks and balances, identifying the right bonds for you.
The fixed rate that the bank pays annually.
Number of times interest is paid to the bondholder
The date when the bond issuer returns the principal amount to the bondholder.
The profile of the issuer also plays a major role in deciding the right bond to invest in. E.g.
Private Sector – Renowned & Stable companies like TATA Group, Aditya Birla Group, Mahindra, HDFC, L&T, Bajaj, etc.
Public Sector – REC, PFC, NHAI, THDC, PSU Banks like SBI, Bank of Baroda, PNB, etc.
Consider investing in bonds through EldersWealth, India’s leading wealth management firm.
With a cumulative industry experience of around 70 years across functions, FMCG, Banking, Broking Services, Wealth Management and Personal Finance Management, we are a prolific team and offer holistic solutions for happy & content second innings.
Unlike Bonds, in which the minimum ticket size is upwards of 10 lakhs, corporate FDs have no such size or stipulation. You can start as low as 10 thousand, which makes them an attractive proposition, although the returns may not be as high as bonds. Yet, they give better returns than bank deposits.
As compared to bank FDs, corporate FDs offer a higher interest rate, which has a significant impact on your corpus over time. Furthermore, corporate FDs offer flexibility in that depositors can choose the interest duration. To maximize returns and ensure capital safety, you should choose companies with a high credit rating.
Fixed interest rates
Corporate Fixed Deposits (FDs) offered by EldersWealth cover a wide range of institutions, tenures and interest rates. Corporate FDs offer higher interest rates than traditional bank deposits, and senior citizens receive an additional 0.25 to 0.5%.
In summary, those who are dissatisfied with low bank rates, must consider either bonds or corporate FDs depending on their requirements.
|NBFC / HOUSING FINANCE COMPANIES-ACCEPTING FRESH & RENEWALS||Rating||Minimum||Int Mode||12M||24M||36M||60M|
|BAJAJ FINANCE LTD (0.25% extra for SC)||FAAA||25000||M/Q/H/A||5.65%||6.40%||6.80%||6.80%|
|HDFC LTD (Limit : Upto 2 Crs) (0.25% extra for SC)||FAAA / MAAA||20000||M/Q/H/A||5.45%||5.85%||6.10%||6.50%|
|HDFC LTD Premium Deposits (0.25% extra for SC)||FAAA / MAAA||20000||M/Q/H/A||15M-5.70% 30M-6.00%||22M-5.95% 44M-6.35%||33M-6.25% 66M-6.70%||NA|
|LIC HOUSING FINANCE LTD (0.25% Extra for SC)||CRISIL-FAAA||10000||A||5.15%||5.65%||5.90%||6.00%|
|LIC HOUSING FINANCE LTD (0.25% Extra for SC)||CRISIL-FAAA||200000||M||5.00%||5.35%||5.75%||5.85%|
|MMFSL – FIXED DEPOSIT - Max 1 Crore (0.25% Extra for SC)||CRISIL-FAAA||10000||Cumulative||5.50%||6.00%||6.30%||6.45%|
|PNB HOUSING FINANCE LTD - Max 5 Crore (0.25% extra for SC)||CRISIL-FAA+||20000||M/Q/H/A||5.75%||6.15%||6.60%||6.85%|
|SHRIRAM TRANSPORT FINANCE CO.LTD (0.30% extra for SC)||FAAA/MAA+||10000||M/Q/H/A||6.50%||6.75%||7.50%||7.75%|