Bonds:


  Investment Objective: To generate fixed income on regular basis for long term.
  Typically it is a loan given, against which the investor gets interest at specified rate for specific period
  What is the difference between Fixed deposit and Bonds:
 Fixed deposit can be preclosed. Bonds cannot be preclosed, but can be sold in listed exchanges like stock exchange.
  Who offers Bonds:
 RBI,
 Government Companies
 Public Sector Undertaking Companies
 Manufacturing Companies
 NBFC's
  What is the duration of Investment:
 It varies from 3 Year to 10 Years.
  What is the interest rate offered on these fixed deposits:
 It varies from 7% to 10%.
  Is there any special interest for Senior Citizens (age 65 and above)
 Some companies do offer an extra interest of 0.25% to 0.50%.
  What are the interest payment options: It varies between the issuing company.
 Quarterly Annual
 Cumulative
  What is the Taxation law for interest earned from fixed deposit:
 Interest is mostly taxable. But tax-free interest bonds may be issued from time to time.
 Tax deduction at source (TDS) is done when interest earned from any single deposit crosses Rs.2500.
  Who Can invest in a Bonds ?
 It is defined by the issuer of bond. But most of the bonds allow the following investors: Individuals / HUF's / NRI's / Minors / Trusts / Proprietorship firms/ Partnership firms/ Private limited companies / Limited Companies / Societies / Associations.