Corporate bonds are issued by large organizations to raise funds for projects. Bonds of large and stable organizations offer very high safety and are a very attractive alternative to traditional fixed deposits.
Have Questions? Check out our
|Corporate Bonds||Fixed Deposits|
|Returns||~7-10% p.a.||~5.5% p.a.|
|Liquidity before maturity||Available in secondary markets||Available but with penalty|
|Risk||Low to Medium||Low|
|Taxation||No TDS on interest. No tax on maturity proceeds||TDS deducted on interest|