If you’re seeking income, Edward Jones offers a variety of options that may fit your needs, including corporate bonds and certificates of deposit (CDs). While these two products have some similarities, they also have some key differences.
Corporate bonds vs. CDs
How are they the same?
Both can be sold prior to maturity. But keep in mind that prices can fluctuate over time due to various market factors, including interest rate risk, such that when interest rates rise, the prices of bonds can decrease. You may lose principal value and receive more or less than you originally invested if you sell prior to maturity.
|How are they different?|
Stocks have performed well over the past few years, and they may represent a larger portion of your portfolio than you intended. You may need to rebalance to the mix of stocks and fixed-income investments that’s right for you, and CDs or corporate bonds may be an appropriate solution. Start by getting in touch with your Edward Jones financial advisor today.
Before investing in bonds, you should understand the risks involved, including credit risk and market risk. Certificates of deposit (CDs) offered by Edward Jones are bank-issued and FDIC-insured up to $250,000 (principal and interest accrued but not yet paid) per depositor, per depository institution, for each account ownership category. Please visit www.fdic.gov or contact your financial advisor for additional information. FDIC insurance does not cover losses in market value. Early withdrawal may not be permitted. CDs require the distribution of interest and do not allow interest to compound. CDs offered through Edward Jones are issued by banks and thrifts nationwide. Please see the Certificate of Deposit Disclosure Statement (PDF) for additional information.