Public’s new Bond Account provides exposure to high-yield and investment-grade corporate bonds and seeks to generate more income than a high-yield cash account or US Treasuries of a similar duration. By investing in this account, members have access to a portfolio of ten bonds that generate monthly interest.

A Bond Account is a separate account provided by our clearing firm, Apex Clearing. Your Bond Account is separate from your primary Public Investing Brokerage account and will have separate statements and tax documents. Your Bond Account consists of a portfolio of 10 bond positions, each paying routine interest. The bonds in this portfolio will typically generate a higher yield than U.S. Treasuries though will come with additional risk. Each bond will have its own semi-annual interest payments and maturity dates.

How does a Bond Account work?

Deposits in your Bond Account currently have a minimum of $1000 dollars. This amount may change at a later time at Public Investing’s sole discretion. This cash can come from another Public Investing brokerage or an external account such as a linked bank account. In addition to your own deposits, cash may accrue from interest payments on bonds you own. As described in more detail below, all cash in your Bond Account is used to purchase bonds, which could include both cash from deposits but also from bond coupon payments.

What happens when a bond matures in my Bond Account?

Upon maturity, the proceeds will be allocated to the Bond cash Account. If the cash account reaches $100, a new bond purchase will be initiated pursuant to the Buy Order Methodology . Please note that a new purchase could be at a lower yield than what was previously held. To withdraw the cash, you can place a sell for the amount of the cash balance. Please keep in mind the Sell Order Methodology when placing a sell order, found here.

For further questions or information regarding a Bond Account please contact Member Support via in-app chat or email at support@public.com.