Individual bonds are managed actively and provide fixed income stream to buyers, while offering them flexibility. Investors can sell these bonds before their maturity time if they want to invest in an option that yields better returns. Some of the highly popular individual bonds are the US Treasury bonds, agency bonds, municipal bonds and corporate bonds.
US Treasury bonds: These are issued by the US Department of Treasury. As a result, these bonds are considered to be secure investments.
Agency bonds: These are offered by various US government agencies and known to offer higher return.
Municipal bonds: These are issued by local and state governments. Municipal bonds are popular investment options for those who require fixed income over the intermediate- to long-term periods.
Corporate bonds: Offered by both private and public corporations, these bonds comprise varying risks and returns profiles. This also depends on the financial condition of the issuing company.
Savings accounts: These are maintained by financial institutions spanning mutual savings banks, savings and loans associations, and commercial banks. The main advantage is that it pays regular interest on the deposited amount.
Certificate of deposit (CD): This is a risk-free time deposit that pays fixed interest till the end of its term. This is offered by credit unions, banks and thrifts institutions.