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What's The Difference Between Ncds & Fds?

Answer»

Following are the differences between an NCD and an FD:

  1. LIQUIDITY: In contrast to a NCD, FD can't be sold in the market. As NCDs are LISTED on a stock exchange, you can SELL them any time you want. HOWEVER, bank FDs are also highly liquid and can be encashed before maturity with minor penal charges.
  2. Safety: While NCDs are secured debt, corporate FDs are altogether unsecured and bank FDs are secured to the extent of Rs one lakh only.
  3. Taxation.

Following are the differences between an NCD and an FD:


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