Bonds generally provide higher rates of interest than other bank Accounts.

http://en.wikipedia.org/wiki/Fixed_rate_bond

Bonds generally provide higher rates of interest than other bank accounts, so fixed rate bond accounts are ideal for people who have spare money that they can afford to lock away for a fixed period of time.
There are a number of factors that you need to be aware of before choosing your account, for example, some accounts offer interest that it adds onto your balance monthly, which then accumulates more interest throughout the year based on the total balance. Other accounts pay the interest owed when the term ends, or pay the interest into a separate savings account on a monthly basis, so you will only be paid interest on the opening balance.