FD stands for Fixed Deposit, which is a financial instrument offered by banks and financial institutions. It is a type of investment where an individual deposits a certain amount of money with a bank for a fixed period of time at a predetermined interest rate. The interest rate offered on fixed deposits is generally higher than regular savings accounts.
Fixed deposits are considered a safe investment option as they provide a guaranteed return at maturity. The interest earned on fixed deposits can be paid out periodically or reinvested with the principal amount. The interest rates for fixed deposits vary depending on the duration of the deposit, the amount invested, and the prevailing market conditions.
Bonds, on the other hand, are debt instruments issued by governments, municipalities, and corporations to raise capital. When an entity issues a bond, it is essentially borrowing money from investors. Bonds have a fixed maturity date and pay periodic interest payments to the bondholders.