Quarterly interest bonds

Quarterly Interest Paying Bonds are fixed-income securities that make interest payments every three months. These are ideal for investors seeking regular, predictable income aligned with quarterly needs.

• Consistent Cash Flow Every Quarter: Investors receive interest payouts four times a year, making it easier to manage expenses.

• Diverse Issuers: Offered by PSUs, financial institutions, NBFCs, and credible corporates.

• Suitable for Budgeting: Helps investors plan finances around quarterly inflows rather than annual payments.

Upon investment, the issuer pays interest every quarter and returns the principal on maturity. While you avoid large gaps between payouts, reinvesting received interest for long-term returns requires deliberate planning.

• Predictable Quarterly Income: Useful for managing recurring expenses without draining principal.

• Flexibility: You can reinvest payouts elsewhere or stream them into your expenditure plan.

• Lower Psychological Risk: Regular income reduces anxiety tied to long waiting periods before payouts.

• Reinvestment Discipline Required: Quarterly payouts can lead to idle cash if not reinvested promptly.

• No Compounding on Withdrawn Interest: Payouts do not build on the principal, limiting growth compared to cumulative instruments.

• Tax Implications: Interest is taxed yearly as per your income slab; frequent payouts may complicate tax planning.

Ideal For:

• Individuals seeking regular income with more frequent payouts than annual or semi-annual bonds.

• Investors whose expenses align with quarterly cycles, such as certain tax or insurance payments.

Not Ideal For:

• Long-term savers relying on compounding interest to build wealth.

• Those preferring lump-sum payouts at maturity for larger re-investment.