Skip to content
Glossary · Investing

Bond (investment)

Where a link is marked * or labelled Ad, it is a partner advertisement: we receive commission at no extra cost to you. Links without a * or Ad label earn us nothing. How we make money.

Last reviewed:

Definition: A loan to a government or company that pays a fixed rate of interest (the coupon) and returns the principal at maturity.

UK government bonds are called gilts. Corporate bonds pay higher yields but carry credit risk. Bond prices move inversely with interest rates: rising rates push existing bond prices down. Note: a fixed-rate savings 'bond' from a bank is a different product (a deposit, FSCS-protected).

Related

More Investing terms