Household savings shifting from FDs to listed bonds

The post-tax arithmetic

For investors in the 30% bracket, AA-rated listed paper at 8.5% YTM now beats a 7.5% bank FD on after-tax return — and the gap widens further once you account for LTCG treatment.

Online platforms have collapsed the friction that earlier kept retail away from corporate bonds.

Why this trend should persist

Expect the shift to accelerate as more investors discover that listed bonds qualify for LTCG treatment after 12 months.

Banks won't sit still — expect FD rates to creep up at the long end as deposit competition heats up.