FD interest rates are higher than investment bonds, investment bonds offer more tax benefits. Both fixed deposits and investment bonds involve saving a certain amount of money for a specified period. While FD interest rates are much higher than investment bonds, investment bonds offer more tax benefits.
A fixed deposit offers guaranteed returns. The rate of interest offered to you when you open an FD remains constant throughout your tenure. Even if the interest rates fall in the broader market, your FD won’t be affected. You, therefore, don’t have to worry about the ups and downs of the market.

Benefits of FD & Bonds :

1.High interest.

2. Short-term deposits
3. Lock-in period is only 6 month
4.No Income Tax is deducted at source if the interest income is up to Rs 5,000 in one financial year

5.Investment can be spread in more than one company, so that interest from one company does not exceed Rs. 5,000