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.
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 In such case, whatever interest is accrued on the amount you have withdrawn will be credited to your savings account (the account that has been linked to your FD) and the balance amount will automatically be converted in your new FD.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.