Bonds are debt securities where you lend money to companies or governments in exchange for interest. The issuer promises to pay back the principal amount after a set period. Fixed Deposits (FDs) are low-risk investments in which you deposit money with a bank for a fixed tenure at a fixed interest rate. While both provide a steady investment return, they differ in risk exposure and liquidity features.
There are regular and reliable returns on bonds and fixed deposits providing a source of income.
Both these investments have a low risk and are ideal for the conservative investors who do not want to expose their funds to risk.
Bonds and fixed deposits are excellent options for safe long-term investors ? the returns are guaranteed plus the risk is minimal.
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