What is the difference between a treasury and a corporate bond?

Treasurys are backed by the government and considered one of the safest types. Corporate bonds, on the other hand, present the risk of you losing money if companies go bankrupt. *Brokerages can provide CDs as well, but only brokered CDs, which differ in some regards from standard CDs.

What is the difference between a CD and a bond?

While CDs and bonds have various similarities — both are low-risk investments that often earn a fixed rate — there are several differences that can factor in when you’re choosing between the two: Generally, both CDs and bonds can be safe investments.

Should you buy a CD or a bond?

In some situations, CDs may be the better choice for shorter-term goals, while bonds may be part of a longer-term strategy. CDs don’t increase in value as bonds could when interest rates fall, although CDs would pay the established higher interest rate for the duration of their term.