A Bond or a fixed deposit (FD) provided by banks or few other financial institutions which provides investors with a higher rate of interest than a regular savings account, until the given maturity date. It may or may not require the creation of a separate account. They are considered to be very safe investments.

Some features and benefits of Bonds and FDs

The defining criteria for a fixed deposit is that the money cannot be withdrawn from the FD as compared to a recurring deposit or a demand deposit before maturity.
Customers can avail loans against FDs up to 80 to 90 percent of the value of deposits. The rate of interest on the loan could be 1 to 2 percent over the rate offered on the deposit. One can open this account for a minimum of 3 months.
Also in certain macroeconomic conditions, FDs become an attractive investment avenue as they offer good returns and are almost completely secure with minimum risk.
One distinct benefit is, nowadays, banks gives the facility of Flexi or sweep in FD, where in you can withdraw your money through ATM, through cheque or through funds transfer from your FD account. In such case, whatever interest is accrued on the amount you have withdrawn will be credited to your savings account (the account that has been linked to your FD) and the balance amount will automatically be converted in your new FD. This system helps you in getting your funds from your FD account at the times of emergency without wasting your time.