List of Short Term Bonds in India 2026

Short term bonds are a popular fixed-income investment option for investors looking to park funds for a shorter duration while earning relatively stable returns. These bonds typically come with lower interest rate risk compared to long-term bonds, making them suitable for conservative and medium-term investment strategies. Continue reading for a curated list of short term bonds available in India in 2026 along with essential details to help investors evaluate their options.

What are Short Term Bond?

Short term bonds are debt instruments with a relatively shorter maturity period, generally ranging from a few months to up to 3 years. These bonds are issued by corporates, banks, NBFCs, and government-backed entities to raise funds for short-term requirements.

Since the tenure is shorter, they are less sensitive to interest rate fluctuations compared to long-term bonds, making them a relatively stable option within fixed-income investments.

Key Features & Benefits of Short Term Bond

Here are some of the key features and benefits of short term bond-

• Shorter Maturity Period: Usually range between a few months to 3 years
• Lower Interest Rate Risk: Less impacted by changes in market interest rates
• Predictable Returns: Offer fixed interest payouts at defined intervals
• Better Liquidity: Easier to exit compared to long-term bonds (especially if listed)
• Capital Preservation: Suitable for safeguarding capital over a shorter horizon
• Wide Availability: Issued by corporates, NBFCs, and government-backed entities

List of Short Term Bond in India

Who Should Invest in Short Term Bond?

• Conservative Investors: Those looking for relatively stable and low-volatility investments
• Short-Term Investors: Investors with a time horizon of up to 3 years
• Liquidity-Focused Investors: Individuals who may need access to funds in the near term
• Parking Surplus Funds: Suitable for temporarily deploying idle funds
• First-Time Bond Investors: Those exploring fixed-income instruments with lower duration risk

Risks Involved in Short Term Bond

• Credit Risk: Risk of issuer default or delayed payments
• Liquidity Risk: Some bonds may not have active buyers in the secondary market
• Reinvestment Risk: Difficulty in reinvesting at similar rates after maturity
• Interest Rate Risk: Though lower, bond prices may still be affected by rate changes
• Market Risk: Prices may fluctuate based on economic conditions

Tax Applicability on Short Term Bond

Interest Income: Taxed under “Income from Other Sources” as per the investor’s income tax slab

Short-Term Capital Gains (STCG): Applicable if sold before 12 months (for listed bonds) and taxed as per income tax slab

Long-Term Capital Gains (LTCG): Applicable after holding period (as per bond type) and taxed as per applicable tax rules

TDS Applicability: May be deducted if interest exceeds prescribed limits

How to Buy a Short Term Bond?

Through Demat Account (Secondary Market):

• Log in to your trading account
• Search for bonds using ISIN or issuer name
• Check yield, price, and maturity
• Place a buy order

Online Bond Platforms:

• Browse available bonds
• Compare yields and tenure
• Invest digitally

Primary Issuances (NCDs or Government Securities):

• Apply during new bond issuances
• Invest through banks, brokers, or authorised platforms

Disclaimer

The short term bond data on this page is sourced from the NSDL website and is based on publicly available market information as on 23 March 2026. Prices, yields, trade values, and other related details are subject to change in real time depending on market movements and liquidity. This content is intended solely for informational and educational purposes and should not be considered as investment advice, recommendation, or an offer to buy or sell any securities.