Fixed Deposits and Bonds

Fixed deposit is a type of savings accounts that pays a fixed interest rate until maturity. Bonds are usually offered at a higher rate of return that other fixed deposits which is for the longer maturity periods and possibility of capital gains. Fixed deposits are also known as the certificates of deposits that offer a safe and predictable way to earn interests on your savings. While, Bonds are the debt securities that are issues by the governments, municipalities and corporations to raise capital and diversify your investment portfolio.