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.)