Lock in 6.8% Yield with Public.com’s New Bond Account

Read our Advertiser Disclosure.
Contributor, Benzinga
November 27, 2024
Patriot,Bond,-,United,States,Treasury,Savings,Bonds

Tired of watching your cash stagnate while inflation munches away at your buying power? Public.com is flipping the script on bond investing with its new Bond Account – a portfolio of 10 corporate bonds offering a jaw-dropping 6.8% yield.* Spoiler: that's much sweeter than the average savings account and even beats many bond options on traditional platforms. 

What Makes the Bond Account Stand Out?

Public’s Bond Account lets you invest in a diversified portfolio of corporate bonds, blending investment-grade and high-yield options. You’ll earn regular interest payments (yes, 20 times per year) without the usual hurdles of high minimum deposits or confusing processes. Here’s why it’s worth a double-take:

  • Accessible Investment Minimum: Unlike traditional bond accounts, which require $10K+ buy-ins, Public lets you start with just $1,000.
  • Regular Interest Payments: Receive semiannual interest payments from each of the 10 bonds in your account. That’s 20 payouts annually – because who doesn’t like consistent cash flow?
  • Locked-In Yields: Your yield at purchase remains fixed until bonds are called or mature, meaning you don’t have to fret about market volatility after committing.

How Does 6.8% Compare?

Let’s not sugarcoat it: 6.8% blows the competition out of the water. The average U.S. savings account yields around 0.43%, while many government bonds hover at around 4%. Even some corporate bonds on major platforms like Interactive Brokers or Fidelity fall short of Public’s offering.

  • Average Bond Yield: Many brokerage platforms offer annualized yields below 5% for similar portfolios.
  • Savings Accounts: With rates under 1%, most banks aren’t in the same league.

For a full review of Public.com and its offerings, check out our Public.com review.

Why Lock In Your Yield Now?

The Federal Reserve is signaling rate cuts ahead, which could push bond yields lower in the near future. By locking in a yield like 6.8% today, you’re safeguarding your return for the next four years or until the first bond in the portfolio matures.

  • If Rates Drop: Bond prices will rise and new investors could face much lower yields.
  • If Rates Rise: The current portfolio’s locked yield will hold steady, providing predictability amidst the chaos.

Easy Setup in Two Steps

Public.com makes locking in your yield frictionless. Here’s how:

  1. Deposit Cash: Start your account with a minimum of $1,000 allocated across the ten-bond portfolio.
  2. Get Paid: Enjoy regular interest payments. Once you’ve earned ~$100 in income, Public automatically reinvests it at the then-current yield.

A Few Fine Print Nuggets

Public’s 6.8% yield is calculated as an average Yield to Worst (YTW) across all 10 bonds and your actual rate may vary slightly based on purchase timing. While the bonds are diversified, corporate bonds do carry risks, such as issuer default or price fluctuation if you sell before maturity. Always weigh these factors when investing.

A Win for Yield-Hungry Investors

Public.com’s Bond Account offers a high-yield option with an accessible entry point and the allure of regular interest payments. This could be a game-changer for those ready to ditch subpar savings accounts or low-yield government bonds. Just don’t snooze – opportunities to lock in a 6.8% yield don’t come around every day.

Ready to earn more? Explore Public.com’s Bond Account today and lock in your 6.8% yield before the Fed changes the game.

*This yield is the current average, annualized yield to worst (YTW) across all 10 bonds in the Bond Account before fees. Because the YTW of each bond is a function of that bond’s market price, which can fluctuate, your yield at the time of purchase may be different from the yield shown here and YTW is not “locked in” until the time of purchase. A bond’s YTW is not guaranteed; you can earn less than that YTW if you do not hold the bonds to maturity or the issuer defaults. Learn more.