NetReturns

NCD and bond calculator

Not insured; depends on the company (check its rating) · Interest taxed at your slab rate

₹
Public issues usually ask for ₹10,000 or more
yrs
%
Enter your bond's interest rate (coupon). 8.5% is only a starting point, not a typical rate.
Interest you receive

₹8,500 a year

₹5,848 after tax. Your ₹1,00,000 comes back after 5 years.
You put in
₹1.00 L
Interest in all
₹42,500
Tax
₹13,260

5.85% a yearafter tax

Your deposit and the interest paid out so farYour moneyEarned

Good to know

  • An NCD (non-convertible debenture) is a loan to a company. If the company runs into trouble it can pay late or not at all, and unlike a bank deposit there's no insurance.
  • Check the credit rating (AAA is the safest) and whether the NCD is secured against the company's assets. A rate well above others usually means more risk.
  • Interest is taxed at your slab rate, and TDS may be deducted. This assumes you buy at issue and hold to maturity; sell on the exchange earlier and any gain is taxed too.
  • Listed NCDs can be sold on the stock exchange, but few trade, so you may not get a fair price quickly.