In British deposit terminology, the term Bond refers to a savings account or certificate of deposit made with a U.K. financial institution that pays a fixed rate of interest until a given maturity date. Funds placed on deposit in a Bond usually cannot be withdrawn prior to maturity or they can perhaps only be withdrawn with advanced notice and/or by having a penalty assessed. Bonds are also debt instruments where the issuer agrees to pay a certain rate of interest until the principal is returned on its maturity date.
For example, a Bond deposit will often be used by individuals, businesses and financial institutions in Britain as a means of storing their liquid funds for a fixed period of time for future use. In the U.K. retail market, Bonds are relatively safe investments when provided by insured and regulated financial institutions such as banks. Also, while the term Bond is in common usage for such certificates of deposit in the United Kingdom, they are also known as term deposits in countries like Australia, Canada and New Zealand, as time deposits in the United States, and as fixed deposits in India and some other countries.