Selecting fixed income

Selecting Fixed Income

At Schwab, you get access to a range of resources, advanced tools—like our bond search tool: Schwab BondSource®—and help from Schwab Fixed Income Specialists.

Make informed decisions with the help of Schwab resources.

  • Easily search over 80,000 bonds using Schwab BondSource®.1
  • Use tools and resources to help you make better decisions.
  • Gain insight through expert market commentary.
  • Rely on Schwab Fixed Income Specialists for help and guidance when you need it.

Investing in bonds

Find the bond that's right for you

Opens in popupRead transcriptfor Find the bond that's right for you

Many investors have told me they want to invest in bonds, but aren't sure how to do it, or which bonds might be best for them.

To a large extent, it depends on your goals, your risk tolerance, your timeline, and how active you want to be in managing your portfolio.

Let's start with what kind of bonds you should consider. Key questions here are: what's your primary goal, how long is your investing timeframe, and how much risk do you want to take?

If you expect to need the money within four years, or want to take the least amount of risk, your primary goal is likely to be capital preservation. Investments that can be appropriate include bank CDs or short-term bond funds.

If your investing timeline is longer, and you're willing to take more risk in order to potentially earn higher yields, you might consider longer-term Treasury bonds or investment-grade corporate or municipal bonds.

And if your primary goal is income, and you're willing to take the greatest amount of risk, think about emerging market bonds or long-term Treasuries.

Once you've decided what to invest in, the next step is how to do it.

A first step here is how much you have to invest in fixed income securities.

For example, we recommend at least $100,000 if you intend to invest in individual bonds, so you can buy enough bonds from different issuers to create an adequately diversified portfolio.

Many separately managed accounts have minimum investment levels of about $250,000

The other question is how actively you want to manage your portfolio. If you're an experienced fixed income investor and want to do it yourself, individual bonds are an option.

If you'd rather leave the management to a professional, consider mutual funds or a separately managed account.


How to find the right bond

Schwab expert Kathy A. Jones provides insight on what to consider.

Our fixed income offerings now include Wasmer Schroeder™ Strategies.

The Schwab platform provides what you need to become a more informed investor.

With thousands of fixed income products available, selecting the ones that are right for you can seem difficult and time-consuming. That's where Schwab helps.

  • Tools & research for self-directed investors

    Search bonds
    Use Schwab BondSource® to screen more than 80,000 bonds from close to 200 dealers.1

    Learn about bond ladders as an investment strategy

    Search CDs
    Use Schwab CD OneSource to select a CD that meets your maturity and yield needs.

    Get to know the risks, strategies, and ways to manage your fixed income investments.

  • Expert insights for timely market analysis

    Stay at the forefront of modern investing with insights and ideas from Schwab experts, including Kathy A. Jones, Senior Vice President and Chief Fixed Income Strategist, Schwab Center for Financial Research.

    Read Commentary

  • Dedicated specialists for complex needs and strategies

    Talk to a Fixed Income Specialist about your complex fixed income needs; you can get assistance from our Schwab Fixed Income Specialists.

Access extra tools to help you with your fixed income decisions.

Schwab gives you access to a number of extra tools to help you learn more about and stay on top of the bonds you're interested in, as well as manage your fixed income portfolio.

  • Trade history

    Review historical trading activity for corporate and municipal bonds over a 24-month period.

  • Schwab Portfolio Checkup®

    Review, analyze, and track the performance of your current asset allocation.

  • MuniPOINTS®

    Access detailed information about municipal bond issues, including comparison data.

  • Market depth

    View the two-sided market for a bond and see all the ask and bid prices.

  • Moody's rating reports

    Get in-depth information about individual bonds by reading the latest credit report from Moody's.

  • Bond alerts

    Set up alerts that notify you when a bond's credit rating changes.

  • Security description

    Descriptions help you search for, classify, or group together securities of similar features and attributes.

  • CD & Treasury Rollover

    Automatically reinvest the principal on your maturing CDs and U.S. Treasury securities.

Security description breakdown

Details include characteristics such as security type, maturity date, and coupon rate, type, and frequency.

You can review credit rating and insurance, including S&P rating, Moody's rating, default status, and trading flat status.

View tax treatment, as well as federal, state, and alternative minimum tax (AMT).

Offer details include price, current yield, yield to maturity, yield to call, and yield to worst.

Security description breakdown Security description breakdown Security description breakdown

Ready to trade

We're here to help.

Looking to trade bonds or CDs online?

Looking to trade bonds or CDs online?
Get access to our tools from your Schwab account

Clients of independent investment advisors:
You may also contact your advisor or call Schwab Alliance at 800-515-2157