Bonds, Interest Rates & Exchange Rates

Is the principal of a bond guaranteed like a deposit?

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No. Unlike deposits and savings accounts, bonds are not covered by deposit insurance, so if the issuer goes bankrupt you may not get your principal and interest back.

Also, if you sell before maturity, you may receive less than your principal depending on the market price at that time. Before investing, it is a good idea to check both the issuer's creditworthiness and the product's risk grade.

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This answer is general financial information as of 14/10/2026, not investment advice. Rules and tax rates change, so please also check the latest guidance from the source institution.