HDFC Bonds – A Comprehensive Guide for Investors

10 October 2025

What Are HDFC Bonds?

Bonds have long been a preferred investment option for those seeking predictable returns and capital safety. Among India’s leading issuers, HDFC (Housing Development Finance Corporation) offers various bond products designed to cater to different investor needs. From corporate bonds to RBI savings bonds distributed through HDFC Bank, investors have multiple ways to gain fixed-income exposure.

This guide explores the types of HDFC bonds, their interest rates, how to buy them, and key details investors should know before investing.

HDFC bonds are fixed-income instruments issued by the Housing Development Finance Corporation Limited or distributed through HDFC Bank and HDFC Securities. These bonds allow investors to lend money to the issuer (HDFC or another government body via HDFC Bank) in exchange for periodic interest payments and the return of principal at maturity.

Broadly, HDFC offers or facilitates access to two major categories of bonds:

  • HDFC Corporate Bonds or Non-Convertible Debentures (NCDs) – Issued by HDFC Ltd. or HDFC Bank to raise capital for business operations.

  • RBI Savings Bonds (via HDFC Bank) – Government-backed bonds distributed through HDFC Bank, offering assured interest rates determined by the Reserve Bank of India (RBI).

Types of HDFC Bonds

1. HDFC Corporate Bonds

These are debt instruments issued by HDFC Ltd. or its subsidiaries. They are designed for investors looking for steady income with moderate risk.

Key Features:

  • Issuer: HDFC Ltd. or HDFC Bank

  • Tenure: Typically 3 to 10 years

  • Interest Payment: Annual or semi-annual

  • Credit Rating: Usually AAA, reflecting high creditworthiness

  • Listing: Listed on exchanges such as NSE or BSE

  • Interest Rates: Depend on prevailing market conditions and issuance period

These bonds are suitable for investors looking for predictable interest income without taking significant equity risk.

2. RBI Savings Bonds (Distributed via HDFC Bank)

HDFC Bank acts as a distributor for RBI Floating Rate Savings Bonds (Taxable) – 2020. These are sovereign-backed bonds, meaning the repayment and interest are guaranteed by the Government of India.

Key Features:

  • Issuer: Government of India

  • Distributor: HDFC Bank

  • Interest Rate: Linked to the National Savings Certificate (NSC) rate + 0.35%. The rate is reset every six months.

  • Tenure: 7 years

  • Minimum Investment: ₹1,000 (no upper limit)

  • Taxation: Interest is taxable as per investor’s income tax slab

  • Premature Withdrawal: Permitted only for senior citizens under specific conditions

This product is often preferred by conservative investors seeking steady returns backed by government security.

HDFC Bonds Interest Rates

The interest rate on HDFC bonds depends on the type of bond, tenure, and market environment.

For illustration:

  • HDFC Corporate Bonds: Around 7.5% to 8.5% p.a. (varies by issue)

  • RBI Floating Rate Bonds (via HDFC Bank): 8.05% p.a. (as of recent RBI rate cycle, subject to revision)

These rates are indicative and can change depending on RBI announcements and new bond issuances. Investors should check the official HDFC Bank or HDFC Securities website for the latest rates.

How to Buy HDFC Bonds

Investors can purchase HDFC bonds through multiple channels, depending on the bond type.

1. Through HDFC Bank:

Visit the nearest HDFC Bank branch or use HDFC NetBanking to apply for RBI bonds or other fixed-income products available through the bank.

2. Through HDFC Securities:

HDFC Securities offers online bond trading facilities for listed NCDs and corporate bonds. Investors with a demat account can directly purchase bonds through their online trading portal.

3. Through NSE/BSE:

Listed HDFC bonds can also be bought or sold on recognized stock exchanges through any registered broker.

Before investing, it’s essential to understand the bond’s credit rating, yield, and maturity details.

How to Check RBI Bonds Status in HDFC Bank Online

If you have invested in RBI bonds via HDFC Bank, you can check your investment status by:

Logging in to HDFC NetBanking → Investments & Insurance → Bonds section.

You can view details such as bond certificate number, interest credited, and maturity date.

Alternatively, visit your HDFC Bank branch for a physical statement or assistance.

Understanding HDFC Bond Price and Yield

Bond prices fluctuate with interest rate movements. When market interest rates rise, bond prices generally fall, and vice versa.

For example:

If HDFC issues a bond with an 8% coupon and market rates fall to 7%, the bond’s market price will increase since it offers a higher return than new issues.

This price-yield relationship is a fundamental concept for investors to grasp when trading bonds on secondary markets.

Using the HDFC Bond Calculator

Some online portals, including HDFC Securities, offer a bond calculator to estimate potential returns. Investors can input:

  • Investment amount

  • Interest rate

  • Tenure

  • Compounding frequency

The tool provides an estimate of interest earned and maturity value. However, these are illustrative figures and not guaranteed returns.

Risks Involved in HDFC Bonds

Like all fixed-income instruments, HDFC bonds are subject to certain risks, including:

  • Interest Rate Risk: Bond prices may fluctuate with changing interest rates.

  • Credit Risk: Although HDFC bonds often carry high ratings, credit risk cannot be entirely ruled out.

  • Liquidity Risk: Some corporate bonds may have limited secondary market liquidity.

  • Taxation: Interest income is taxable as per applicable laws.

Investors should assess their risk tolerance before allocating funds to any bond product.

Contact Details for HDFC RBI Bonds

Investors seeking assistance can contact HDFC Bank’s investment services:

Toll-Free Number: 1800 202 6161 / 1860 267 6161

Website: https://www.hdfcbank.com

Visit Branch: For investment and KYC-related services

FAQs

1. What is the current HDFC bonds interest rate?

HDFC corporate bonds generally offer between 7.5% and 8.5% interest per annum, while RBI bonds available via HDFC Bank currently offer around 8.05% p.a. (floating rate).

2. How can I buy HDFC bonds online?

You can buy HDFC bonds through HDFC Securities, HDFC Bank NetBanking, or through registered brokers on NSE/BSE.

3. Are HDFC bonds safe?

HDFC bonds carry high credit ratings (often AAA), indicating strong repayment capacity. However, like all investments, they involve some level of market and credit risk.

4. Can I withdraw from RBI bonds before maturity?

Premature withdrawal is allowed only for senior citizens under defined conditions by RBI.

5. What are the tax implications?

Interest earned on HDFC or RBI bonds is taxable as per the investor’s income tax slab rate.

Conclusion

HDFC offers a wide range of bond options catering to different risk and return profiles. Whether investing in corporate NCDs or sovereign-backed RBI bonds via HDFC Bank, investors can explore opportunities for steady income while maintaining portfolio balance.

However, investors should thoroughly review bond features, credit ratings, and tax implications before making any investment decisions.

Disclaimer

This blog is intended solely for educational and informational purposes. The bonds and securities mentioned herein are illustrative examples and should not be construed as investment advice or personal recommendations. BondScanner, as a SEBI-registered Online Bond Platform Provider (OBPP), does not provide personalized investment advice through this content.

Readers are advised to independently evaluate investment options and seek professional guidance before making financial decisions. Investments in bonds and other securities are subject to market risks, including the possible loss of principal. Please read all offer documents and risk disclosures carefully before investing.

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