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Fixed Income & Bonds

Fixed income investments generally pay a return on a fixed schedule, though the amount of the payments can vary. Individual bonds may be the best known type of fixed income security, but the category also includes bond funds, ETFs, CDs, and money market funds.

Are you paying too much for bonds somewhere else?

See why it can be better to buy your bonds here

In a study conducted by Corporate Insight, our bond pricing beat markup-based brokers by an average of $13 per trade online. That could add up to a cost savings of hundreds of dollars on a typical bond order.2

Largest selection of bonds and CDs offered at a single firm

Individual Bonds
Bonds make interest payments and repay the principal on a fixed schedule. Interest and principal payments are subject to the creditworthiness of the issuer.

Bond Funds
Bond mutual funds invest primarily in individual bonds. Many make periodic dividend payments based on the interest paid by the bonds held in the fund.

Fixed Income ETFs
Exchange-traded funds (ETFs) are baskets of investments that trade as a single unit throughout the day.

Certificates of Deposit (CDs)
CDs offer FDIC insurance,3 providing a guarantee of the invested principal up to certain limits.

Money Market Funds
Money market funds are managed to help preserve your principal by investing in lower-risk debt securities with shorter maturities.

Why Buy Bonds & CDs at Fidelity?

  • Extensive bond & CD inventory
  • Transparent, simplified pricing: $1 per bond1
  • Bond market news and issuer research
  • Professional-grade tools and trading data
  • Expert service

Learn more

Research, tools, and education

Research fixed income & bonds
Stay up to date with news, market data, and research on fixed income investing and the bond market.

Fixed Income Tools & Services
Create a retirement income strategy, build a bond ladder, or stay on top of market updates.

Learn About Fixed Income & Bonds
Gain a deeper understanding of fixed income and bonds in the Fidelity Learning Center.

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1. Minimum concessions apply: online secondary market transactions $8; if traded with a Fidelity representative, $19.95. For U.S. Treasury auction purchases traded with a Fidelity representative, $19.95 per trade. Fixed income trading requires a Fidelity brokerage account with a minimum opening balance of $2,500. Rates are for U.S. dollar–denominated bonds; additional fees and minimums apply for non-dollar bond trades. Other conditions may apply. See Fidelity.com/commissions for details. The offering broker, which may be our affiliate National Financial Services LLC (NFS),may separately mark up or down the price of the security and may realize a trading profit or loss on the transaction.

2. Fidelity commissioned Corporate Insight to study bond pricing, available online, for self-directed retail investors from five brokers that offer corporate and municipal bonds. The study compared online bond prices for over 20,000 municipal and corporate inventory matches between September 2nd and October 6th, 2015. It compared municipal and corporate inventories offered online in quantities of at least $10,000 face or par value. The study found on average that three competitors that bundled their markups or fees into their online bond prices were asking an average of $13.97 more per bond. Corporate Insight determined the average cost differential by calculating the difference between the costs of matching corporate and municipal bond inventory at Fidelity vs. these markup-based firms in the study, then averaging the differences across all of the competitor firms. Hypothetical cost savings of $286 is based on an average size order of $22,000 face or par value bonds and average cost differential of $13 per bond.

3. For the purposes of FDIC insurance coverage limits, all depository assets of the accountholder at the institution that issued the CD will generally be counted toward the aggregate limit (usually $250,000) for each applicable category of account. FDIC insurance does not cover market losses. All of the new issue brokered CDs Fidelity offers are FDIC insured. In some cases, CDs may be purchased on the secondary market at a price that reflects a premium to their principal value. This premium is ineligible for FDIC insurance. For details on FDIC insurance limits, see www.fdic.gov.

An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.

In general, the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk, liquidity risk, call risk, and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so holding them until maturity to avoid losses caused by price volatility is not possible.

High yield/non-investment grade bonds involve greater price volatility and risk of default than investment grade bonds.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information.  Read it carefully.