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What Are Bonds? A Quick Guide

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What Are Bonds

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We are all trying to make the most out of our money, but there are so many things that we have to choose from when it comes to money products. Some of these things we have a decent knowledge of, others are a bit unfamiliar. Unfortunately, there are many different forms of overlooked investments that could do with a second look, and Bonds are one of them.

Bonds are one of those things that we may have heard of but are not too sure what they are. Maybe you have only heard of them in old movies, Mr Banks from Mary Poppins was very keen to discuss them and make his children invest in their futures. And that is the thing, we associate Bonds with a world that existed before internet access savings and cryptocurrency. The reason people avoid buying Bonds is that they appear to be very complicated.

What Are Bonds?

Bonds are a form of investment. If they have to be classed as anything, they hang in between being a form of fixed-rate savings and a safer form of stock. Instead of selling your Bonds, you earn interest on them and at the end of their term, they mature. And, there are different types of Bonds to choose from. They are secured and unsecured, long term and short term. Some can be held for around 3 years, others won’t mature for over 10 years. We are sure your heads are spinning from this new information. If you want more information, we have a handy infographic to help explain how Bonds work.

Infographic Design RoboForex investment bonds

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