Fixed Income Investments are an important part of a balanced portfolio. Whether your goal is to diversify your investments, save for the future, receive a regular income or shelter earnings from taxes, by adding fixed income investments to your portfolio, you may improve returns while reducing overall portfolio risk.
The Schwab advantage
Extensive inventory available through our direct relationship with leading bond dealers—at very competitive prices
Dedicated fixed income specialists.
Online trading and research
Schwab offers a variety of fixed income products including:
US Government Securities1
Treasury bills, notes and bonds—US Treasury securities, backed by the full faith and credit of the U.S. federal government, are considered to be the highest credit quality.
Zero coupon Treasuries (STRIPs)2—offering growth potential through the power of interest compounding.
US government agency securities—historically higher yields with comparable maturity.
Certificates of Deposits (CDs)3
FDIC-insured. Offers fixed rate of return from a variety of institutions.
Corporate Bonds, Convertible Bonds, Hybrid Preferred Securities, and Preferred Stock
More aggressive choices for investors willing to take on credit risk.
Mortgage-backed Securities (GNMAs)
For investors desiring a monthly income who are willing to take on some risk.
Investment value will fluctuate, and shares, when redeemed, may be worth more or less than original cost.
1. Securities or services are not available in all countries, and are subject to country-specific restrictions.
2. STRIPs are zero coupon bonds backed by the full faith and credit of the US government and are purchased at a discount with full face value being received at maturity. The value of securities fluctuates due to changing interest rates or other market conditions. You may realize either a gain or a loss on your investment, depending on market value when you sell before maturity.
3. Certificates of Deposit offer a fixed rate of return and are FDIC insured.
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