Bonds can be issued in secured or unsecured form. Normally bonds issued in the form of debentures are secured. Bond issued by Financial Institutions offer attractive returns. Interest under the scheme is paid monthly, quarterly, half yearly, Annually and on maturity. Most of the bonds provides flexibility, liquidity and safety. The flexibility can be seen from the range of options provided (i.e) frequency of return/tenure/tax benefits etc.

Bonds provide good liquidity which include option to withdraw on pre-specified dates, listing on major stock exchanges, avail loans from banks by pledging bonds / securities.

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