To Anonymous 219

me1004
  |     |   1,381 posts since 2010

To Anonymous 219: the value of bonds you hold goes inverse to the rise in interest rates. So, bonds you are holding will become worth less and less as interest rates rise. I wouldn't want to be holding bonds when interest rates start going up. And in a bond fund, as you suggest, you don't even have control over whether to hold the bonds to maturity -- much less is it possible to sell at maturity as all the bonds in the fund will mature on different dates.

But also, you are comparing interest rates of bonds and FDIC-insured CDs. The CDs are not going to lose money -- period. The bonds very well might -- especially if the issuer should go bankrupt in the lousy economy.



The financial institution, product, and APY (Annual Percentage Yield) data displayed on this website is gathered from various sources and may not reflect all of the offers available in your region. Although we strive to provide the most accurate data possible, we cannot guarantee its accuracy. The content displayed is for general information purposes only; always verify account details and availability with the financial institution before opening an account. Contact [email protected] to report inaccurate info or to request offers be included in this website. We are not affiliated with the financial institutions included in this website.