Predictable Interest Income Across Government and Corporate Issuers
Bonds pay interest at set intervals and repay face value at maturity, subject to the issuer's ability to pay. We help you compare types, ratings and liquidity.
Low (sovereign) to High (AT1, high-yield)
Typically ₹10,000 face value for many listed bonds; varies by issue
From under a year (T-Bills) to several decades (long G-Secs); perpetual bonds have no fixed maturity. Liquidity before maturity varies.
- Investors seeking regular interest income
- Retirees and conservative investors planning cash flows
- Equity-heavy portfolios looking to reduce overall volatility
- Investors who can hold to maturity and understand credit ratings
- Sovereign, PSU, state-guaranteed, tax-free, perpetual and corporate options
- Monthly, quarterly, half-yearly or annual interest, depending on the bond
- Listed bonds held in demat and tradeable on NSE / BSE (liquidity varies)
- Credit ratings from SEBI-registered rating agencies for most corporate bonds
- Interest: taxed at your slab rate; TDS may apply
- Listed bonds held over 12 months: LTCG at 12.5% without indexation
- Other gains (short-term, or unlisted bonds): taxed at slab rate
- Tax-free bonds: interest exempt under Section 10(15); capital gains on sale are taxable
Tax treatment as per current law and subject to change; please consult a qualified Chartered Accountant before investing.
What Is a Bond?
A bond is a loan you give to a government or company. In return, the issuer pays you interest — the coupon — at regular intervals and repays the face value on maturity. Listed bonds are held in your demat account and can be traded on the exchange, though many trade rarely.
Bonds add predictability to a portfolio, but they are not free of risk. The issuer may delay or fail to pay, prices move when interest rates change, and some bonds are hard to sell before maturity. WealthBay helps you access bonds through partner platforms and issuers; we focus on rating, security and liquidity, not just the coupon.
Bond Types at a Glance
Yields change daily with market prices and are shared on request. Ratings shown are typical for each type — always check the rating of the specific bond.
GOI / Sovereign Bonds
Government of India securities, including dated G-Secs and T-Bills, and State Development Loans. Backed by the government, so credit risk is lowest, but prices still move with interest rates.
Perpetual / AT1 Bonds
Additional Tier 1 bonds issued by banks with no fixed maturity. Coupons can be skipped and the bond can be written down under regulatory conditions, so they carry significantly higher risk than the bank's other debt.
Tax-Free Bonds
Issued in the past by PSUs, with interest exempt from income tax. No new issues have come in recent years, so they are available only on the secondary market, where price and availability vary.
PSU Bonds
Bonds issued by public sector undertakings and financial institutions. Usually high-rated, with government ownership of the issuer — but not a sovereign guarantee unless stated.
State-Guaranteed Bonds
Bonds of state-owned entities that carry a guarantee or support from the state government. Credit quality depends on the strength of that support and the state's finances.
Private Secured Bonds
Bonds from private companies and NBFCs backed by a charge on specified assets. Security can improve recovery in a default but does not remove the risk of loss.
High-Yield Bonds
Bonds from lower-rated issuers that pay more to compensate for higher default risk. Suitable only for a small part of a portfolio, for investors who can absorb losses.
Terms Every Bond Investor Should Know
YTM
Yield to Maturity — your total annualised return if you buy at today's price and hold to maturity, assuming all payments are made. A better comparison measure than the coupon.
Coupon
The interest rate paid on the face value, at the frequency set by the issuer. Your actual return also depends on the price you pay.
Credit Rating
An opinion from a SEBI-registered rating agency on the issuer's ability to pay. Lower ratings signal higher default risk, and ratings can be revised.
Call Option
The issuer's right to repay the bond before maturity on set dates. If called, you get your money back early and may have to reinvest at lower rates.
Yield Comparison by Bond Type
Relative comparison only. Current indicative yields are shared on request.
| Bond Type | Credit Risk | Liquidity | Indicative Yield |
|---|---|---|---|
| GOI / Sovereign | Lowest | High | On request |
| Tax-free | Low | Low to moderate | On request |
| PSU | Low | Moderate | On request |
| State-guaranteed | Low to moderate | Low | On request |
| Private secured | Moderate | Low | On request |
| Perpetual / AT1 | High | Low | On request |
| High-yield | High | Low | On request |
Yields are indicative, change daily with market prices and depend on the specific bond; we share figures as of the date you ask. Risk and liquidity labels are general and relative.
Risks to Understand Before Investing in Bonds
Bonds are subject to credit, interest-rate and liquidity risk. Read the offer document, information memorandum and rating rationale before investing.
- Payment of interest and principal depends on the issuer's ability to pay.
- A credit rating is an opinion and can be downgraded.
- Bond prices fall when interest rates rise; selling before maturity may result in a loss.
- Many bonds trade rarely, so you may have to sell at a discount.
- AT1 bonds can be written down and their coupons skipped under regulatory conditions.
How to Invest
- 1
Define Your Need
Tell us your income needs, horizon and risk comfort; we shortlist bond types and maturities to match.
- 2
Compare Live Options
We share current indicative yields, ratings, rating rationale and liquidity for available bonds from partner platforms.
- 3
Buy in Demat
Purchase through a partner platform or exchange; bonds are credited to your demat and interest is paid to your linked bank account.
Have questions about Bonds?
Speak to our team — no obligation. We'll explain the options, risks and costs.
Common Questions About Bonds
Is a higher yield always better?
Why do you show yields as "On request"?
Can I sell a bond before maturity?
Do I need a demat account?
Disclaimer: Bond yields are indicative and change with market conditions. Credit ratings can be revised. Payment of interest and principal depends on the issuer's ability to pay; read the offer document and rating rationale before investing.
WealthBay Private Limited — AMFI-registered Mutual Fund Distributor, ARN-29566. WealthBay acts as a distributor of third-party financial products and earns commissions from product providers. Please read all scheme / offer documents carefully before investing.
Find Bonds That Match Your Income Needs
Talk to us about bond types, ratings, maturities and current indicative yields.