Invest in Bonds: Regular Interest, Known Maturity
A bond is a loan you give to a government or a company. In return, the issuer pays interest (coupon) at regular intervals and returns the face value on the maturity date. Use the calculator to see a sample payout schedule, then compare bond platforms.
Bond Return & Payout Calculator
Illustration only. Change the values to match the bond you are looking at.
Illustrative. Assumes the issuer pays every coupon on time and returns the face value at maturity. Real bonds can delay or default. Not an offer or quote.
What Is a Bond?
If you have a bank fixed deposit, you already understand the idea. With a bond, the borrower is a government or a company, and bonds can be bought and sold on the market.
Face Value
The amount printed on the bond. Interest is calculated on this amount, and it is returned to you at maturity.
Coupon
The interest rate the issuer pays, as a percentage of face value. It can be paid monthly, quarterly, half-yearly or yearly.
Maturity
The date the bond ends and the issuer repays the face value. Some bonds can be sold earlier on the market.
Credit Rating
An agency's opinion of how likely the issuer is to repay. A higher rating means lower risk, but no rating removes risk completely.
Yield
The return you actually earn, which depends on the price you pay as well as the coupon. Buying below face value raises your yield.
Demat Account
Bonds are held electronically in a Demat account, so you need one to invest.
Types of Bonds
Different issuers, different risk levels. Availability on each platform varies.
Government Securities (G-Sec)
Issued by the Central Government. They carry sovereign backing, and usually offer lower interest than corporate bonds.
State Development Loans (SDL)
Issued by State Governments to raise money for development work.
Corporate Bonds
Issued by companies, NBFCs and PSUs. Interest depends on the issuer's rating and market conditions, and risk is higher than government bonds.
Treasury Bills
Short-term government papers, issued for less than one year.
Sovereign Gold Bonds (SGB)
Government bonds linked to the price of gold. Availability for fresh purchase may be limited, so check the platform.
Tax-Free Bonds
Interest is exempt from income tax under current rules. They are mostly available in the secondary market.
Your Sample Payout Schedule
Based on the values you entered in the calculator above. It updates automatically.
| # | Date | Interest (₹) | Principal (₹) | Total (₹) | Cumulative (₹) |
|---|
Dates are approximate. Actual dates, amounts, accrued interest, taxes and charges depend on the specific bond. Interest is taxable as per your income-tax slab.
How to Start
Pick a Platform
Compare the bond platforms below and register with the one you like.
Complete KYC
Paperless e-KYC with PAN, Aadhaar and bank details.
Compare Bonds
Check the issuer, rating, coupon, tenure and minimum amount.
Invest
Buy the bond. It is credited to your Demat account and interest is paid to your bank account.
Bond Platforms You Can Use
Both are online platforms where you can buy and sell bonds. Read each page to see which suits you.
BondBazaar
An online platform to buy bonds with digital onboarding.
- G-Secs, SGBs, PSU bonds and NBFC bonds
- Interest paid monthly, quarterly or yearly, depending on the bond
- Paperless e-KYC; bonds are credited to your Demat account
IndiaBonds
An online platform to browse and invest in bonds from many issuers.
- Government securities, State Development Loans, corporate bonds and tax-free bonds
- Compare by issuer, rating, coupon and maturity
- Minimum investment varies by bond
Features and availability are as shown on each platform and can change.
Risks to Understand First
Bonds are not risk-free. Please read this before you invest.
Credit Risk
The issuer may delay or fail to pay interest or the face value. Ratings can change over time.
Interest-Rate Risk
When market interest rates rise, the price of existing bonds usually falls. This matters if you sell before maturity.
Liquidity Risk
You may not find a buyer at a fair price quickly, especially for less-traded bonds.
Frequently Asked Questions
Are bonds safer than stocks?
Bonds usually fluctuate less than stocks, but they are not risk-free. Government bonds carry sovereign backing, while corporate bonds carry credit risk. Check the issuer and rating before investing.
Can I sell a bond before maturity?
Many bonds can be sold on the market, but the price may be higher or lower than what you paid, and a buyer may not be available quickly.
What is the minimum amount?
It varies by bond. Some bonds have a face value of ₹1,000, others ₹1 lakh or more. The platform shows the minimum for each bond.
Do I need a Demat account?
Yes. Bonds are held electronically in a Demat account. The platforms guide you through opening one if you do not have it.
How is bond interest taxed?
Interest is generally taxable as per your income-tax slab, except for bonds specifically exempt, such as tax-free bonds. Please consult a tax professional for your case.
How accurate is the calculator?
It is a simple illustration. It assumes you hold the bond to maturity and ignores accrued interest, taxes and charges. The actual bond terms decide the real numbers.
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