Broaden your portfolio by investing in bonds & CDs
Our online tools and experienced specialists can help you find the fixed income investments for all your needs.
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Are bonds right for you?
Bonds are simply loans you make to a government, government agency, or corporation to finance various projects and other needs. The bond issuer agrees to repay you at a fixed interest rate by a specified date, or maturity.
You may want to consider bonds if:
- You want to focus on a specific credit quality or maturity, exposure to certain states, or income that's free from federal, state, local, or the alternative minimum tax.
- You want to complement the mutual funds in your portfolio.
Are CDs right for you?
A CD—or certificate of deposit—is an interest-bearing certificate commonly offered by banks, thrift institutions, and credit unions to raise money for their business activities. You deposit money with the issuer for a set time, and the issuer promises to repay you at a specified interest rate.
You may want to consider CDs if:
- You're looking for higher yields than you'd get with bank accounts and money market funds.
- You want a low-risk place to park cash you don't plan to use right away.
- You like the safety of knowing your investment is insured by the federal government.
- You're saving for a short-term goal, such as buying a house, in the next 2 to 5 years.
Why invest in bonds & CDs with us?
Trade almost all fixed income securities online, or tap into the experience of our investment professionals.
Our bond and CD inventory offers a range of segments and maturities across the domestic market, including:
- Municipal and corporate bonds (new-issue and secondary-market).
- U.S. Treasury bonds, bills, notes, and TIPS (at auction and on the secondary-market).
- Government agency bonds, including GNMA issues.
We don't offer securities denominated in foreign currencies, U.S. savings bonds, Israeli bonds, or church bonds.
Enjoy competitive, straightforward trading rates, including commission-free trades on these financial products:
- U.S. Treasury securities (new and existing issues).
- New-issue government agency securities, corporate bonds, and CDs.
If you like to do your own research, you can use our tools to narrow your choices.
How to invest in bonds and CDs
You need a brokerage account to invest in individual bonds and CDs. If you have any questions along the way, we're happy to help.
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RELATED THIRD-PARTY SITES
A group of bonds with different maturities. When a bond reaches maturity, you can use the proceeds to buy a new bond. This strategy can help mitigate the risks of changing interest rates and prices. For example, if interest rates are rising when your bond matures, you may be able to buy a new bond at a higher yield.
At maturity, these CDs don't automatically roll over into another CD.
There are no interest penalties if you sell brokered CDs before maturity—although you may have to sell at less than face value depending on factors such as interest rates.
There's a new-issue purchase minimum of $10,000, with $1,000 increments thereafter.
TIPS are Treasury inflation-protected securities whose principal increases with inflation and decreases with deflation, as measured by the Consumer Price Index. TIPS pay interest twice a year at a fixed rate, which is applied to the adjusted principal. At maturity, you're paid the adjusted principal or original principal, whichever is greater.
An agency within the U.S. Department of Housing and Urban Development that buys mortgages from lending institutions and pools them to form securities, known as "Ginnie Maes," which are then sold to investors.