New: Bond Account
Lock in your
6.9
%
*
yield
(as of 8/22/2024)
Discover a new way to invest in bonds and earn a 6.9%* yield with monthly interest payments.
* Yield represents avg. annualized rate of return across all bonds, before fees, as of 8/22/2024. Yield can change daily, and yield at time of purchase may be different from the yield shown. Return may be affected if you do not hold a bond to maturity, or if the issuer defaults or calls the bond. Learn more.
A new way to invest in corporate bonds
Now, you can invest in a diversified portfolio of investment-grade and high-yield corporate bonds that earn yield over an extended period of time.
Lock in yield for years
Skip the sky-high minimums
Receive monthly interest payments
Unlike a High-Yield Cash Account, the yield of a Bond Account is locked in at the time of purchase. That means you'll receive your yield at purchase until the first bond matures in 2028.1
With a minimum $1,000 deposit, you can invest in a portfolio of ten bonds. Many bonds on other platforms are only available in investment sizes of $10k or more.
While you are invested in a Bond Account, you'll receive at least one monthly interest payment from your diversified portfolio of ten corporate bonds.2
Secure your 6.9% yield* in two steps
Deposit cash
Get paid monthly
1
2
Your deposits are allocated to a portfolio of ten investment-grade and high-yield corporate bonds.
Your account generates a monthly yield. Once your income reaches ~$1,000, it is reinvested at the then-current yield.
1 Advertised yield is the annualized yield to maturity of all 10 bonds in the Bond Account. The first bond in that set matures in four years; at that point, the avg yield to maturity of the remaining bonds will change. Note that you may not actually receive this yield if you sell the bonds prior to maturity, or if the bond issuer defaults or calls the bond
2 Payments are anticipated, but all bond transactions are subject to risk of missed payments or default.
* Yield represents avg. annualized rate of return across all bonds, before fees, as of 8/22/2024. Yield can change daily, and yield at time of purchase may be different from the yield shown. Return may be affected if you do not hold a bond to maturity, or if the issuer defaults or calls the bond. Learn more.
A Bond Account is a self-directed brokerage account with Public Investing, member FINRA/SIPC. Deposits into this Account are used to purchase 10 fractional investment-grade and high-yield bonds in equal par value allocations. All bond investments are subject to risk, including risk of default. High-yield bonds carry greater risk of default than higher rated bonds. Learn more
Earn 6.9%* for years. Even if the Fed cuts rates.
The Fed has signaled potential rate cuts this year, and market expectations are for cuts of 1% or more by year-end. Plus, the market has priced in additional cuts in 2025. That means bond yields could go down. Soon.
Secure your earnings until 2028
days
Locking in your 6.9% yield* before the Fed’s potential rate cuts can have a significant impact on the earnings you generate over the next 4-5 years.
Wednesday, Sept 18th
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* Yield represents avg. annualized rate of return across all bonds, before fees, as of 8/22/2024. Yield can change daily, and yield at time of purchase may be different from the yield shown. Return may be affected if you do not hold a bond to maturity, or if the issuer defaults or calls the bond. Learn more.
Explore our entire suite of yield accounts
High-Yield Cash Account
Treasury Account
Bond Account
5.1%
4.9%
6.9%
Earn an industry-leading 5.1% APY* on your cash with no fees. Plus, get up to $5M FDIC insurance.
Invest in US Treasury bills with a 4.9%** yield, and pay no state or local taxes on your earnings.
Balance risk and return with a diversified portfolio of corporate bonds that generate a 6.9%*** yield.
*Rate as of 8/12/2024. APY is variable and subject to change’
**Yield is an annualized 26-week T-bill rate (as of 8/12/2024) when held to maturity. Rate is gross of fees and is subject to change
***Yield represents average annualized rate of return across all bonds, before fees, as of 8/22/2024. Since yield is subject to change daily, yield will be locked in at the time of purchase and may be different from the yield shown
What else do I need to know?
How do I invest in a Bond Account on Public?
You can find the Bond Account alongside other yield accounts (Treasury and High Yield Cash) on the Public app or on the web. You can fund the account from your existing buying power or from an external account with an investment of $1,000 or more. Each investment of $1,000 will be used to purchase a portfolio of ten fractional investment-grade and high-yield bonds in equal par value allocations. You may make a one-time investment into the Bond Account or schedule recurring investments on a weekly or monthly basis.
What are the benefits and risks of investing in a Bond Account?
One key benefit of a Bond Account is locking in your yield at time of purchase. Unlike a savings account or other variable rate account, your yield for each bond is fixed at the time of purchase, though the return may be affected if you do not hold a bond to maturity, or if the issuer defaults or calls the bond. Other benefits include the ability to invest in ten bonds for $1,000, where typically individual bonds have minimums of $1,000+. However, fractional bonds carry some risks, which can be found here. Other risks include the risk of default, liquidity risk, and inflation risk (if inflation outpaces the fixed income from a bond, this may reduce the real return on investment.)
How does a Bond Account compare to other yield accounts on Public?
Compared to Public’s High Yield Cash Account and Treasury Account, a Bond Account generates a higher yield, but comes with higher risk of default and illiquidity. Like a Treasury Account on Public, the Bond Account reinvests interest at the current rate automatically once it hits a minimum threshold (in this case ~$1,000). Similar to other yield accounts on Public, cash in a Bond Account may be withdrawn at any time, but there is a small fee to do so ($0.50 per $100).
What happens to my investment if interest rates change?
Once you are invested in a Bond Account, your yield is locked in unless a bond in the account defaults, is called, or is sold. That means that even if interest rates fall (i.e. the Federal Reserve cuts rates), your Bond Account yield for deposits already made will not change. Note that the Bond Account yield will fluctuate daily and subsequent deposits into the account may be at different yields than your original deposit.
Are there any fees for the Bond Account?
Deposits and withdrawals into the Bond Account are subject to a markup of 5 basis points (i.e. $5 per $1,000 invested). In addition, there is a $3.99 monthly fee for the account which is waived until 2025. The monthly account fee will also be waived for all Public Premium members. See fee schedule here.
Lock in your
6.9
%
*
yield
(as of 8/22/2024)
* Yield represents avg. annualized rate of return across all bonds, before fees, as of 8/22/2024. Yield can change daily, and yield at time of purchase may be different from the yield shown. Return may be affected if you do not hold a bond to maturity, or if the issuer defaults or calls the bond. Learn more.
© Copyright 2024 Public Holdings, Inc. All Rights Reserved.
All investments involve the risk of loss and the past performance of a security or a financial product does not guarantee future results or returns. You should consult your legal, tax, or financial advisors before making any financial decisions. This material is not intended as a recommendation, offer, or solicitation to purchase or sell securities, open a brokerage account, or engage in any investment strategy.
Product offerings and availability vary based on jurisdiction.
Stocks and ETFs.
Brokerage services for US-listed, registered securities are offered to self-directed customers by Open to the Public Investing, Inc. (“Open to the Public Investing”), a registered broker-dealer and member of FINRA & SIPC. Additional information about your broker can be found by clicking here. Open to Public Investing is a wholly-owned subsidiary of Public Holdings, Inc. (“Public Holdings”). This is not an offer, solicitation of an offer, or advice to buy or sell securities or open a brokerage account in any jurisdiction where Open to the Public Investing is not registered. Securities products offered by Open to the Public Investing are not FDIC insured. Apex Clearing Corporation, our clearing firm, has additional insurance coverage in excess of the regular SIPC limits. Additional information can be found here.
Brokerage services for US-listed, registered securities are offered to self-directed customers by Open to the Public Investing, Inc. (“Open to the Public Investing”), a registered broker-dealer and member of FINRA & SIPC. Additional information about your broker can be found by clicking here. Open to Public Investing is a wholly-owned subsidiary of Public Holdings, Inc. (“Public Holdings”) and is affiliated with Public Investing UK Limited through common ownership. Securities products offered by Open to the Public Investing are not FDIC insured. Apex Clearing Corporation, our clearing firm, has additional insurance coverage in excess of the regular SIPC limits. Additional information can be found here.
Bonds
“Bonds” shall refer to corporate debt securities and U.S. government securities offered on the Public platform through a self-directed brokerage account held at Public Investing and custodied at Apex Clearing. For purposes of this section, Bonds exclude treasury securities held in treasury accounts with Jiko Securities, Inc. as explained under the “Treasury Accounts” section. Investments in Bonds are subject to various risks including risks related to interest rates, credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors. The value of Bonds fluctuate and any investments sold prior to maturity may result in gain or loss of principal. In general, when interest rates go up, Bond prices typically drop, and vice versa. Bonds with higher yields or offered by issuers with lower credit ratings generally carry a higher degree of risk. All fixed income securities are subject to price change and availability, and yield is subject to change. Bond ratings, if provided, are third party opinions on the overall bond's credit worthiness at the time the rating is assigned. Ratings are not recommendations to purchase, hold, or sell securities, and they do not address the market value of securities or their suitability for investment purposes.
Brokerage services for stocks and ETFs on Public.com are offered by Open to the Public Investing, Inc., a registered broker-dealer and member FINRA & SIPC.
Commission-free trading of stocks refers to $0 commissions for Open to the Public Investing self-directed individual cash brokerage accounts that trade the U.S.-listed, registered securities electronically during the Regular Trading Hours. Keep in mind that other fees such as regulatory fees, Premium subscription fees, commissions on trades during extended trading hours, wire transfer fees, and paper statement fees may apply to your brokerage account. Please see Open to the Public Investing’s Fee Schedule to learn more.
Fractional shares are illiquid outside of Public and not transferable. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see our Fractional Share Disclosure to learn more.
All investments involve the risk of loss and the past performance of a security or a financial product does not guarantee future results or returns.
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Activate by March 31st
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Lock in your 6.9% yield*
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