Fixed Income Investment Types
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Choose from a large array of investments

You can access more than 28,000 individual securities, from more than 300 dealers, and hundreds of bond funds. Plus, Schwab has the resources and expertise to help you find the right fixed income investments to meet your needs.

Individual bonds

Individual bonds may require more active management, but offer predictable income streams and great flexibility to meet specific investment goals.
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U.S. Treasuries
  • Widely considered the safest type of bond 
  • Backed by "the full faith and credit" of the U.S. Treasury Department 
  • Many different types available to meet specific investing needs
Agencies
  • Issued by U.S. government agencies 
  • May offer slightly higher returns than treasuries
Municipals
  • Issued by state and local governments to raise money
  • Exempt from federal—and often state and local—taxes1
Corporates
  • Issued by corporations to raise capital
  • Higher returns and higher risk, depending on the company's financial health
GNMA Mortgage-backed securities
  • Securities backed by pools of mortgages; also known as Ginnie Maes (GNMAs)
  • Higher returns, higher risk than treasuries

Other fixed-income investments

Additional fixed-income products are also worth considering when building a balanced portfolio.

Unit investment trusts (UITs) UITs are created with a fixed portfolio of investments that generally remain unchanged for the life of the trust.
Preferred investments These investments have characteristics of both stocks and bonds, with competitive yields.
Principal-protected investmentsIndex-linked principal protected securities are designed to return at maturity the principal invested, even if the index has declined in value.
Real estate investment trusts (REITs)REITs are companies that own, and in most cases operate, income-producing real estate.

Bond funds

Mutual funds made up of bonds are an easy way to invest in fixed income. They offer professional management, convenience, and diversification. Read about bond funds.

Cash Investments

Earn competitive returns with our range of CD and money market fund options.

Certificate of Deposits (CDs) FDIC insured, generally offers fixed rate of return from a variety of institutions. Useful if you are looking for a time-specific savings plan or a low risk investment for your portfolio.
Money Market Funds Designed to provide you with current income, stability of capital and convenient access to your money.

Investors should consider carefully information contained in the prospectus, including investment objectives, risks, charges and expenses. You can request a prospectus by calling 800-435-4000. Please read the prospectus carefully before investing. Past performance does not guarantee future performance.

Investment value will fluctuate, and shares, when redeemed, may be worth more or less than original cost.

An investment in a money market fund is neither insured nor guaranteed by the FDIC or any other government agency. Although the fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in the fund.

CDs are FDIC insured and in most cases are subject to an early withdrawal penalty. Bond investments generally lose value during periods of increasing interest rates.


Fixed-income investments are subject to various risks including changes in interest rates, credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors. For further details, please feel free to contact a Schwab Fixed Income Specialist at 877-563-7818.

1. Tax-exempt income may be subject to the Alternative Minimum Tax (AMT) and capital gain taxes. Consult a tax advisor regarding your particular situation.
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