NCD vs Fixed Deposit: What's the Difference?

Both a Non-Convertible Debenture and a bank fixed deposit promise a fixed return over a set term. For an investor who wants steady income without market swings, either can do the job — but the structure around them differs in ways worth knowing before you commit.

Security and recourse

Our NCDs are issued as secured redeemable debentures, backed by company assets, which gives holders a defined recourse structure. A bank FD is covered by deposit insurance up to the prescribed limit. In both cases you are lending to an institution and taking its credit risk; neither is government-guaranteed beyond those specific protections.

Tenure, payout and transfer

NCDs are typically structured with defined interest slabs by tenure and pay out monthly or quarterly. Unlike a bank FD, an NCD can usually be transferred to a third party with company approval — useful if your plans change before maturity.

An NCD suits an investor who wants a fixed, regular payout and values the option to transfer the holding; an FD suits someone who prizes the simplicity and insurance cover of a bank product.

Before you invest

Our investment schemes are offered only to investors who have received a private offer from the company. Investments are accepted by cheque or account transfer, a completed application with photo, valid KYC and PAN is required, and TDS is deducted as per applicable Income Tax rules. Speak to our investment desk for the current tenure and rate options.