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Bonds Vs FDs: Are Bonds A Better Alternative For Higher Returns? Risks Explained

Bonds Vs FDs: Are Bonds A Better Alternative For Higher Returns? Risks Explained

Sakshi Batra
Sakshi Batra
  • New Delhi,
  • Oct 4, 2026,
  • Updated Oct 4, 2026, 12:00 PM IST

Investors looking beyond fixed deposits often consider bonds as an alternative for potentially higher returns. But how do bonds compare with FDs on risk, taxation and liquidity? Vishal Goenka, Co-founder, Indiabonds, explains why investors should compare bonds with other fixed-income products rather than equities. He also discusses how corporate bonds can offer higher yields, why FDs can still serve short-term liquidity needs, and why investors should be cautious about high-yield BBB and BBB- bonds. The discussion highlights the importance of checking credit quality, regulation and risk before investing in bonds.