21 April 2014
Difference between Bond and Debentures:
Bonds are more secure than debentures. As a debenture holder, you provide unsecured loan to the company. It carries a higher rate of interest as the company does not give any collateral to you for your money. For this reason bond holders receive a lower rate of interest but are more secure.
If there is any bankruptcy, bondholders are paid first and the liability towards debenture holders is less.
Debenture holders get periodical interest on their money and upon completion of the term they get their principal amount back.
Bond holders do not receive periodical payments. Rather, they get principal plus interest accrued upon the completion of the term. They are much more secure than debentures and are issued mostly by government firms.
While deposits are also fixed interest bearing instruments, they are generally totally unsecured and therefore offer no security to the subscriber.
you should refer to http://www.moneycontrol.com/news/fixed-income-bank-deposits/should-one-opt-for-bonds-or-fixed-deposits_974462.html for a broader understanding