What is a bond & how does it work?

Bonds are an agreement between an investor and the bond issuer – a company, government or government agency – to pay the investor a certain amount of interest over a specified time frame. When the bond matures at the end of the period, the issuer repays the bond’s principal to the bondholder.

How much does a bond account cost?

Purchases and Sales in the Bond Account are subject to a markup of 5 basis points (i.e. $5 per $1,000 invested). In addition, there is a $3.99 monthly fee for the account which is waived until 2025. The monthly account fee will also be waived for all Public Premium members. See fee schedule. How is my Bond Account protected?

What are the benefits of a bond account?

One key benefit of a Bond Account is locking in your yield at time of purchase. Unlike a savings account or other variable rate account, your yield for each bond is fixed at the time of purchase, though the return may be affected if you do not hold a bond to maturity, or if the issuer defaults or calls the bond.