Is NCD better than FD?

NCDs typically offer higher interest rates compared to FDs. However, the interest rates can vary based on the credit rating of the issuer and prevailing market conditions. FDs generally provide a fixed interest rate throughout the investment period.

NCDs are rated by credit rating agencies that help investors identify whether or not to invest in NCDs. FDs are not rated by credit agencies but covered under DICGC insurance for an amount of up to Rs 5 lakhs (including all other bank deposits)