Invest beyond Vanguard mutual funds

Diversify your portfolio with bonds and CDs

Let our experienced fixed income specialists help you find the right investments.

Bond basics

Bonds are a way for governments, government agencies, and corporations to raise money for project and other needs. You loan money to the bond issuer, which agrees to repay you at a fixed interest rate by a specified date or maturity.

Are bonds right for you?

You may want to consider individual bonds if:

  • You're saving for a short-term goal and will need the money in the next 2–5 years.
  • You want the bond portion of your portfolio to focus on a specific credit quality, exposure to certain states, or income free of the alternative minimum tax.
  • You use individual bonds as a way to complement mutual funds in your investment portfolio.

Types of bonds you can buy through Vanguard

Choose from a wide variety of:

  • Municipal and corporate bonds.
  • U.S. Treasury bonds, bills, notes, and TIPS.
  • Government agency bonds, including GNMA issues.

Why Vanguard Brokerage?

By tapping into our sophisticated online tools, you have one convenient place where you can:

  • Search for bonds that match your specific criteria.
  • Compare prices and yields for a wide range of bond types and maturity ranges in a single, consolidated view.
  • Buy and sell bonds easily with simplified online trading.
  • Structure a bond ladder or other specialized bond portfolio.

And you'll get all of that—plus access to our experienced fixed income professionals—at the competitive rates you'd expect from Vanguard.
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CD basics

A certificate of deposit—or CD—is an interest-bearing certificate commonly offered by banks, thrift institutions, and credit unions. You deposit money with the CD issuer for a set time, and the issuer promises to repay you at a specified interest rate.

Are CDs right for you?

You may want to consider CDs because they may offer higher yields than bank accounts and money market funds. CDs issued by FDIC-insured institutions and held in Vanguard Brokerage accounts are generally insured up to certain limits.

Related topics

Information about brokered CDs

  • These CDs don't automatically roll over into another CD at maturity.
  • 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.

Bond ladder

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.

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