- 1). Open a brokerage account with a full service or online discount brokerage firm. Ask friends, family, tax and bank advisers for referrals or conduct an online search for "brokerage firms" to locate a firm that meets your needs with fees and services. Make sure that you understand the fees associated with the purchase and sale of bonds before opening the account.
- 2). Fund the account with a cash deposit or a transfer of funds from securities. There may be a minimum opening deposit required that you need to fulfill or you may be able to wait until you know the amount of the bond transaction before you make the deposit.
- 3). Research low-yield bond possibilities and create a list of options. Full service brokerage firms will have a daily listing of available bond issues, or you can search online for "low-yield bonds" on third party sites such as Morning Star or Yahoo Finance. Notate the grade the bond issue has, which may be a BBB, A, AA, or AAA; lower ratings correlate with higher risk.
- 4). Choose bonds with the highest yield for an AA or AAA ratings. These are the low-yield bonds with the lowest risk based on industry research and grading.
- 5). Purchase the bonds by calling the brokerage customer service line or logging into your online account and purchasing the issue. Write down the details of the transactions, who you spoke with and the confirmation number.
- 6). Pay for the transaction with an electronic funds transfer or deposit within three days of the purchase if you haven't already funded the account with enough money to cover the bond purchase.
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