Bonds are formal certificates of debt, usually issued by corporations or units of government. For more information on this topic, please see the Income Funds section of our Choosing a Fund Page . This is an inherent risk in fixed-rate bonds. For more information on this topic, please visit the Market Timing section of Analyzing Your Personal Risk Tolerance , one of our Basic Investment Principles . Because these are short-term, they carry a low level of risk to the principal.
Interest is earned at the current rate.
For more information on this topic, please see the Money Market Funds section of our Choosing a Fund Page . This money is professionally managed to provide specific types of investment income, such as interest, dividends, or capital appreciation. Money can be easily transferred from one fund to another, thus allowing you to change your investments as your investment objectives change. For more information on this topic, please see the Mutual Funds section of our Choosing a Vendor Page . You continue to control the investment of your savings.