A guide to investing in CDs & individual bonds
You can rely on us to help you find the most competitively priced fixed income investments to meet your financial goals.
POINTS TO KNOW
- You can buy CDs and U.S. Treasury, government agency, corporate, and municipal bonds through Vanguard Brokerage.
- Fixed income products can be bought on the primary or secondary markets.
- Using different bond strategies can help you get the most from your investments.
Buying & selling CDs
Buying & selling bonds
Keep in mind …
Our online listings of fixed income securities show the most up-to-date published data available to us through our broker-dealer network.
However, you should consider the listings as information only, as prices are subject to change and securities are subject to availability.
Finding the right match
Vanguard Brokerage doesn't hold an inventory of CDs and bonds. Instead, we maintain trading relationships with a large number of bond dealers.
The broker-dealers in our extensive network compete against each other to sell us securities, resulting in the best possible price for you.
And because we don't put up capital to maintain a bond inventory, we can pass our savings on to you. In fact, you'll enjoy commission-free trades on new and existing U.S. Treasury securities and new-issue CDs, U.S. government agency securities, and corporate bonds.*
Our fixed income specialists can also research bonds that best meet your needs or help find a buyer who wants to purchase the bond you're selling.
Primary or secondary market: What's the difference?
Bond strategies: Ladders, barbells, and more
Several strategies are available to help you buy bonds that will meet your investment goals, time frame, and how much risk you're willing to take.
CDs & bonds
An insured, interest-bearing deposit that requires the depositor to keep the money invested for a specific period of time or face penalties. Brokered CDs can be traded on the secondary market.
An investment, such as a bond, that offers returns in the form of interest payments.
A long-term security issued by the U.S. government, with a maturity of 10 years or more—most commonly 30 years.
A bond issued by a government agency, such as GNMA.
A bond issued by a corporation.
A debt obligation issued by a state, municipality, or local government authority. Interest paid on municipal bonds (also called "munis") is generally free from federal—and sometimes state and local—income taxes. As a result, yields on municipal bonds are usually lower than comparable taxable bonds.
The part of the market where new securities are issued. The primary market for stocks is an initial public offering (IPO). For bonds, purchasing on the primary market means you buy directly from the bond's issuer and pay face value.
A market where investors buy and sell to each other (rather than buying directly from a security's issuer). Most stock and bond trading happens on the secondary market.
Stocks, bonds, money market instruments, and other investment vehicles.
A licensed individual or firm that executes orders to buy or sell mutual funds or other securities for the public and usually gets a commission for doing so.
A fee charged by a broker for executing a securities transaction.
A money market mutual fund that holds the money you use to buy securities, as well as the proceeds whenever you sell.
An investment that represents part ownership in a corporation. Each share of stock is a proportional stake in the corporation's assets and profits.
A type of investment with characteristics of both mutual funds and individual stocks. ETFs are professionally managed and typically diversified, like mutual funds, but they can be bought and sold at any point during the day using straightforward or sophisticated strategies.