Both FD and Bonds Investments are fixed-income savings instruments. Both involve saving a certain amount of money for a specified period.
Fixed Deposits
1). FDs are issued by Banks, post offices and NBFCs.
2). FDs are also safe instruments but physical assets do not back them.
3). Investors can prematurely withdraw from their fixed deposits.
4). FDs are subject to income tax per the individual income tax slab rate.
5). Tax saving FD provides tax deduction up to Rs.1.5L under Section 80C.
Differences
BONDS
1). Bonds are issued by Government, municipalities, states or private companies.
2). Bonds are considered safe instruments as physical assets back them.
3). Bonds are traded on a stock exchange, and hence they are a more liquid asset.
4). The capital gains from bonds are taxed per their holding period.
5). Investment in bonds has no special tax deduction under this section.
OFFERINGS
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