An FD feels safe because it’s familiar. But familiar isn’t the same as better.
Real backing, not just a promise
When you buy an FD, you’re trusting the bank to pay you back. When you buy a secured bond, you’re holding a legal claim on actual assets — property, equipment, receivables. If the issuer runs into trouble, you’re not just waiting in a queue hoping for the best. You have collateral behind you and priority when it counts.
The Comparison
| Fixed Deposit | Secured Bonds | |
|---|---|---|
| What backs it | Bank’s promise to pay | Legal claim on real assets (property, equipment, receivables) |
| Typical returns | ~6.5–7.5% | Often 2.5–3.5% higher (issuer-dependent) |
| Tax treatment | Interest taxed at your income slab | Can qualify for LTCG if held over a year — usually lighter tax |
| Exit before maturity | Breaking it early cuts your interest | Many trade on exchanges — but liquidity varies, some trade thinly |
| Regulation | RBI-regulated | SEBI-regulated, disclosure-heavy |
Flexible, not locked in
No “break the FD and lose your interest” panic. Secured bonds are built for people who want control, not just a fixed-deposit slip in a drawer.
You’ve already done the hard part: saving. This is about making that money work harder.
At Grow My Cap, We Help You
- Pick the right bonds — vetted issuers, real collateral, no guesswork
- Complete transparency — every bond explained, nothing hidden
- Exit when you need to — guidance on liquidity, not just entry