What Are Some Good One-Year Fixed-Rate Bonds?


Quick Answer

Some good one-year fixed-rate bonds include corporate bonds and U.S. Treasury bonds. As of October 2015, the highest yielding one-year fixed-rate bonds are Corporate BBB, Corporate A and Corporate AA with one-year yields of 1.80, 1.36, and 1.15 respectively, reports AdvisoryHQ.

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What Are Some Good One-Year Fixed-Rate Bonds?
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Full Answer

U.S. government bonds are the most secure type of investment because they have never defaulted and are not likely to ever default. Corporate bonds produce a higher return due to higher risk. The one-year yield of U.S. Treasury Zeroes is .34, and the one-year yield of U.S. Treasury is .31, according to AdvisoryHQ.

Corporate bonds are fully taxable obligations that fund capital improvements, expansions, debt refinancing or acquisitions. Those investing in U.S. Treasury bonds purchase obligations from the U.S. government that it uses to raise capital and make payments on outstanding debts. Those with fixed-rate bonds can capitalize on tax benefits from capital appreciation. Those investing in one-year fixed-rate bonds show they are comfortable with the defined rate of return regardless of possible rises in interest rates, explains Fidelity Investments.

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