ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

How to Buy Corporate and Government Bonds / Treasuries

Updated on August 15, 2013

Buy Bonds Online: from High Yield to Very Safe T-Bills

Lots of people want a safe place to store and grow their money to save up for other things, like retirement. But buying stock in a company can be very risky, especially without a dividend. So, what's another option that is more secure? Buying bonds. A bond is when you loan your money to someone else. Whether it be the government or an organization or company. Don't know where to start though? Well here's a guide exactly how to buy bonds whether they are corporate or government securities.

Quick Question

Have You Ever Bought Stocks or Bonds Before?

See results

How to buy bonds online / offline

There are a few ways to buy bonds.

  • You could purchase the bonds through a bond broker
  • a full service or discount broker
  • you can purchase them directly from a government agency

Opening a Brokerage Account to Buy Bonds

An important thing you need to know how to do when you want to invest in bonds is how to open a brokerage account. A brokerage account is an account at a financial institution which allows you to buy, sell, trade, and hold bonds, stock, mutual funds, options, etc. Every investor has at least one brokerage account. Some good places to open a brokerage account are: Fidelity, Charles Schwab, TD Ameritrade, and Scottrade. You can set up an account online or in person at a location.

In order to make an account, you will need to provide your Social Security number or Individual Taxpayer Identification Number, your employer name and address, your contact information (email, phone number), and the type of account you want to open. Do some research on the different types of brokerage accounts you can open, though you can trade stocks, options, mutual funds, ETFs, bond, and CDs in most investment accounts.

Some financial information will be required as well. When opening a brokerage account online, the website you are using will walk you through the process step by step, and they will make it as simple as possible. They will require some basic information, but it's nothing too complicated.

Find a Reputable Online Bond Brokerage

Once you understand the types of bonds and know which type you would like to invest in, look for reputable discount bond brokers. Consider what bond choices are available. Also pay attention to the commission on the bond. Commission for bond purchases usually range from $1 to $4 per bond, with minimum commission about $8 to $30 per transaction. Some other places to buy bonds are banks and

What Kind of Bonds to Buy?

The first step to buying a bond is understanding what a bond is and understanding your financial needs. A bond is an interest-bearing certificate, issued either by government agencies (known as treasury bonds) or business corporations (known as corporate bonds). With a bond, you will be payed a fixed amount of interest on set dates, usually every 6 months, until at maturity date you get your initial deposit back, plus your interest. However bonds can be structured in a vast amount of different ways and they all have pro's and con's. Pick a structure you are comfortable with.

How to Buy Government Bonds aka Treasuries

Once you've found a bond you are interested in, do your own research. Determine the type of bond, the interest payment dates, and determine if you think this is the kind of investment you would like to make.

Make sure you are satisfied with the safety of the bond, and the credibility of whatever it is your investing in. In general, buying a bond from the government is the safest bond, because a government is highly unlikely to go bankrupt as they can just print more money (this is true in the USA but not for all monetary unions).

Research the Bonds you Buy

So, all in all, buying a bond is obviously an important decision that needs to be thought about. You need to consider the type of bond that would work best for you. You need to consider if the investment you plan on making is a safe one and whether or not you will get your money back and the amount of money you would like to receive as interest. Just pay attention and make sure that the commission and minimum payment are just as you expected. Do your research and due diligence and you will be able to acquire bonds that meet your needs for risk/return levels.

Buying High Yield or Corporate Bonds

When investing in a company you want to be confident that the company will not go bankrupt over the period of time your money will be invested. Because the chances of a company failing are much higher then the U.S.A failing, companies generally pay out higher yields. This is compensation for the risk you bear. When you invest in High Yield bonds of emerging countries the same effect applies. The risk of these states failing is much higher and consequently they have to pay out more to entice investors to lend them money.

Like stocks, bonds will fluctuate in their prices. In general Bond prices are lowest when the interest rate is high because saving money is very competitive in these scenarios. You also want to know how much of your money you want to have invested in bonds instead of stocks.

Bonds are safer than stocks because you usually get priority over equity holders when the remains of a bankrupt company are divided. Bondholders routinely see some of their money returned to them while stockholders are often wiped out in case of bankrupcy. While with a stock, you have equity in a company and you can get either huge returns, or you can lose a lot of money.


This material is provided for information only and is not intended as a recommendation or an offer or solicitation for the purchase or sale of any security or financial instrument. This material is not a complete analysis of all material facts respecting any issuer, industry or security or of your investment objectives, parameters, needs or financial situation, and therefore is not a sufficient basis alone on which to base an investment decision.


    0 of 8192 characters used
    Post Comment

    No comments yet.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)