Individual Bonds

Take ownership of your bond investing strategy by choosing from a wide selection of different types of individual bonds.

What is a bond?

When you invest in a bond, you are a company’s lender and the bond is like an IOU-a promise to pay back the money you’ve loaned, with interest.
The amount of income a bond pays is largely determined by the prevailing interest rate at the time of issuance and other factors specific to that bond.

Get to know the different types of bonds.

Treasury bonds

Treasuries are issued through the U.S. Department of the Treasury and are backed by the full faith and credit of the U.S. government.

Municipal bonds

States, cities, counties, and other local governments, as well as enterprises that serve a public purpose, such as universities, hospitals, and utilities, issue municipal bonds that generally pay interest income that is exempt from Federal and potentially state income taxes.

Corporate bonds

Companies issue corporate bonds to raise capital for activities such as expanding operations, purchasing new equipment, or building new facilities. The issuing company is responsible for making interest payments and repaying the principal at maturity.

Mortgage-backed securities

Mortgage-backed securities are created by pooling mortgages purchased from the original lenders. Investors receive monthly interest and principal payments from the underlying mortgages. These securities differ from traditional bonds in that there isn’t necessarily a predetermined amount that gets redeemed at a scheduled maturity date.

Agency bonds

Agency bonds are issued by either a government-sponsored enterprise (GSE) or a government-owned corporation and are debt obligations solely of the issuing agency.

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$0 fees on new issue bonds* and $1 per bond transaction fee on most secondary market bonds purchased online.**

Common questions

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