Bonds & NCDs
Bonds vs fixed deposits: key differences
Compare issuer risk, liquidity, price movement, tenure and taxation before evaluating either route.
A fixed deposit is placed with a bank or other eligible deposit-taking institution under stated terms. A bond is a debt security issued by a government, company or other permitted entity.
Bonds can change in market value before maturity and may carry credit and liquidity risk. Fixed deposits also depend on the institution's terms, premature-withdrawal conditions and applicable protections.
Stated interest alone is not enough for comparison. Review issuer quality, tenure, liquidity, taxation, documentation and the consequences of exiting early.
This article provides general educational information, not individual investment, tax or legal advice. Eligibility, risks and product terms apply. Product suitability depends on individual circumstances.