A bond is a tradable debt certificate that is issued by a company or a government. When you buy bonds, you lend money to a business or a country. We also speak of:
In most cases, as a bondholder you receive a payment in the form of ‘coupon interest’. Unlike with a share, you do not become a co‑owner when you buy a bond.
"}},{"componentType":"sectionTitle","title":"Market value of bonds"},{"componentType":"paragraph","richBody":{"value":"The price of a bond is shown as a percentage. For example, a bond with a ‘nominal value’ of €1,000 has a price of 109%. At that moment, the market value of the bond is €1,000 × 109% = €1,090.
"}},{"componentType":"sectionTitle","title":"Bond term"},{"componentType":"paragraph","richBody":{"value":"Bonds often have a fixed term. For example, 10 years. At the end of the term, the bond is repaid and you receive the nominal value plus, if applicable, the final coupon interest.
"}},{"componentType":"sectionTitle","title":"Interest settlement when buying and selling"},{"alignedImage":{"extension":"svg","original":"https://assets.ing.com/m/739b40018411a321/original/International-network-communication-world-scene.svg","transformBaseUrl":"https://assets.ing.com/transform/2c6b5418-afb7-435f-9537-bd0214a7209f/International-network-communication-world-scene"},"componentType":"paragraph","richBody":{"value":"When you buy or sell a bond, the ‘accrued’ interest is settled. This is done in proportion to the time that has passed. If a bond changes owner halfway between two interest payments, the buyer must pay the seller not only the market value but also half of the next interest payment
"}},{"componentType":"sectionTitle","title":"Bond returns: you can earn a return on bonds in 2 ways"},{"accordionList":[{"richBody":{"value":"The payment for lending money is usually paid out periodically. For example, once a year. This payment is called coupon interest.
In general: the higher the credit rating of the issuer of the bond, the lower the coupon interest. Lending money to a government is usually less risky than lending money to a company that is in difficulty. That is why government bonds usually have a lower coupon interest than corporate bonds.
The coupon interest of bonds can be fixed or variable:
Besides the direct return from the coupon interest, you can also earn a price return if the market value of your bond rises. The price of a bond depends on factors such as:
Good to know:
Many different bonds are issued. Besides the bond with a fixed term and fixed coupon payment, we explain a few common types below.
"}},{"actionAccordionList":[{"icon":{"altTextNL":"\"\"","extension":"svg","original":"https://assets.ing.com/m/41674c7bdc5ae193/original/Feedback-Lightening_Outline.svg","transformBaseUrl":"https://assets.ing.com/transform/8c3414d5-30b4-427a-a069-cf8848910e84/Feedback-Lightening_Outline","type":"image","width":32},"paragraphs":[{"componentType":"paragraph","richBody":{"value":"This is a loan that will only be repaid in the event of bankruptcy after ordinary bonds and other loans from creditors have been paid. The risks are higher than with an ordinary loan, and the interest rate is usually higher.
"}}],"title":{"value":"Subordinated bonds
"}},{"icon":{"altTextNL":"\"\"","extension":"svg","original":"https://assets.ing.com/m/7f618a798a13fa0d/original/Functionalities-Swap_Outline.svg","transformBaseUrl":"https://assets.ing.com/transform/0174d1a0-d34c-43a3-9a78-eea1cec03d39/Functionalities-Swap_Outline","type":"image","width":32},"paragraphs":[{"componentType":"paragraph","richBody":{"value":"These are also called ‘convertibles’. They are bonds that can be exchanged for shares of the same company under certain conditions. The company, as the issuing institution, sets these conditions.
"}}],"title":{"value":"Convertible bonds
"}},{"icon":{"altTextNL":"\"\"","extension":"svg","original":"https://assets.ing.com/m/ea58f3f7f1165f6/original/Savings_goals-Washing_Machine_Outline.svg","transformBaseUrl":"https://assets.ing.com/transform/c4c479ae-4e85-4242-8736-be6ca9457e42/Savings_goals-Washing_Machine_Outline","type":"image","width":32},"paragraphs":[{"componentType":"paragraph","richBody":{"value":"This is a bond that does not have a fixed coupon interest, but a variable one. The level of the coupon interest is, for example, dependent on the market interest rate. These bonds have the advantage that if the market interest rate rises, the payment also rises. But if the market interest rate falls, the coupon interest will also fall.
"}}],"title":{"value":"Floating rate notes
"}},{"icon":{"altTextNL":"\"\"","extension":"svg","original":"https://assets.ing.com/m/6f408b79a4592f6d/original/Functionalities-Refresh_Outline.svg","transformBaseUrl":"https://assets.ing.com/transform/29b6c4c7-d083-4dd9-94f2-4991967262d0/Functionalities-Refresh_Outline","type":"image","width":32},"paragraphs":[{"componentType":"paragraph","richBody":{"value":"This term comes from English and means ‘perpetual’. It is used for bonds that do not have a predefined term.
"}}],"title":{"value":"Perpetual bonds
"}}],"componentType":"actionAccordion"},{"componentType":"sectionTitle","title":"Bond ratings"},{"componentType":"paragraph","richBody":{"value":"Most bonds have a rating. This rating is an indication of the creditworthiness of the issuer of the bond. It is therefore useful when choosing bonds.
Credit rating agencies Moody’s and Standard & Poor’s (S&P) are the best-known and most used in the world.
Important: we advise you not to go lower than Baa3/BBB/BBB– for a relatively safe investment.
| Moody's | S&P | Fitch | Quality |
|---|---|---|---|
| Long term | |||
| AAA | AAA | AAA | Prime |
| Aa1 | AA+ | AA+ | |
| Aa2 | AA | AA | |
| Aa3 | AA- | AA- | High grade |
| A1 | A+ | A+ | Upper medium grade |
| A2 | A | A | |
| A3 | A- | A- | |
| Baa1 | BBB+ | BBB+ | L:ower medium grade |
| Baa2 | BBB+ | BBB+ | |
| Baa3 | BBB- | BBB- | |
| Ba1 | BB+ | BB+ | Non-investment grade speculative |
| Ba2 | BB | BB | |
| Ba3 | BB | BB- | |
| B1 | B+ | B+ | Highly speculative |
| B2 | B | B | |
| B3 | B- | B- | |
| Caa | CCC+ | CCC | Substantial risks |
| Caa | CCC | CCC | Extremely speculative |
| Caa | CCC- | CCC | In default with little prospect for recovery |
| / | D | DDD | In default |
| / | D | DD | |
| / | D | D |
Which order types you can choose from depends on the investment product and the market where this product is traded. As soon as you enter the order in Mijn ING or the ING App, you will see in the order screen which order types you can choose from.
"},"title":"Good to know if you buy bonds"},{"richBody":{"value":"Do you invest with us through Self Invest? And do you want to sell bonds? This is how selling bonds works at ING:
Go to your Self Invest account and select the bond you want to sell.
Find the bond you want to buy or sell.
Good to know
Which order types you can choose from depends on the investment product and the market where this product is traded. As soon as you enter the order in Mijn ING or the ING App, you will see in the order screen which order types you can choose from.
You can regularly register for an issue of an ING bond through Self Invest. On the final date, you will receive back the amount you registered for, plus the fixed interest.
"}},{"componentType":"sectionTitle","title":"Start investing"},{"alignedImage":{"extension":"jpg","original":"https://assets.ing.com/m/724572fcdac7b494/original/MGM-Content-Stories-3.jpg","transformBaseUrl":"https://assets.ing.com/transform/d942745b-b8d2-4bea-af87-7c909c7624f3/MGM-Content-Stories-3"},"componentType":"paragraph","richBody":{"value":"You can invest with us in 3 different ways. Only with Self Invest do you decide yourself whether you buy bonds and which ones. In the other cases, we ensure good diversification of your investments. Depending on the strategy you choose, part of your investments will consist of bonds.
Tip: Check this helpful decision tool and find out in 1 minute which way of investing suits you best.
"}},{"actionAccordionList":[{"icon":{"altTextNL":"\"\"","extension":"svg","original":"https://assets.ing.com/m/6c368d3243c21e12/original/Savings_goals-Tools_Outline.svg","transformBaseUrl":"https://assets.ing.com/transform/eb3d520a-f5ff-41a7-8cef-dfac9e47ec8e/Savings_goals-Tools_Outline","type":"image","width":32},"paragraphs":[{"componentType":"paragraph","richBody":{"value":"No transaction fees for online buying or selling of funds and trackers
Trade worldwide directly from the investment app
Access to knowledge from the ING Investment Office
No base fee
Self Invest
"}},{"icon":{"altTextNL":"\"\"","extension":"svg","original":"https://assets.ing.com/m/6716bef44a00873b/original/Transactions-Payment_Request_Euro_Outline.svg","transformBaseUrl":"https://assets.ing.com/transform/a7d6cbed-1598-4833-9544-de6d8e2f3a10/Transactions-Payment_Request_Euro_Outline","type":"image","width":32},"paragraphs":[{"componentType":"paragraph","richBody":{"value":"Easy Invest (Eenvoudig Beleggen)
"}},{"icon":{"altTextNL":"\"\"","extension":"svg","original":"https://assets.ing.com/m/2050bd366329d143/original/Persons-Person_At_Desk_Outline.svg","transformBaseUrl":"https://assets.ing.com/transform/d7d8e226-2676-40af-b3c1-e8c201ff9aa6/Persons-Person_At_Desk_Outline","type":"image","width":32},"paragraphs":[{"componentType":"paragraph","richBody":{"value":"Portfolio Management (Vermogensbeheer)
"}}],"componentType":"actionAccordion"},{"componentType":"sectionTitle","title":"What do other investors ask?"},{"accordionList":[{"richBody":{"value":"When you want to improve the diversification in your investment portfolio, for example when you only have shares.
When you want an investment with, on average, less risk than shares.
When you are satisfied with a lower chance of a high return.
With Self Invest you can invest with us in a worldwide range of shares, mutual funds, trackers (ETFs) and bonds. You can also invest in more complex products such as structured products, leveraged products and options. View the different investment products and how they work.
"},"title":"Besides bonds, what can I invest in at ING?"},{"richBody":{"value":"Because investing also costs money, we recommend building up to €2,000 or more. You do not need to do this all at once — you can also add, for example, €100 each month.
The costs depend on the investment product you choose. For example, with Self Invest you pay transaction fees for buying or selling shares, but not for buying or selling mutual funds and index trackers.
"},"title":"How much money do I need to invest?"}],"componentType":"accordion"},{"componentType":"paragraph","richBody":{"value":"It is important that you understand the risks of bonds well before you start investing in them. Read the risks of this investment category carefully.
"},"title":"The risks from investing in bonds"},{"componentType":"linkList","iconTitle":{"title":"Discover more about investing"},"textLinks":[{"text":"Investing with ING","url":"/en/personal/investing"},{"text":"Sustainable investing","url":"/en/personal/investing/sustainability"},{"text":"How does investing work","url":"/en/personal/investing/how-does-investing-work"},{"text":"ING Investment Office","url":"/en/personal/investing/ing-investment-office"},{"text":"Market news and views","url":"/en/personal/investing/market-news-and-views"}]}]},"hasMacro":false,"id":"6f0320fd-7304-4550-9d7f-cb2662c9cd2c","localeString":"en-GB","mainHeaderZone":{"backLink":{"textLink":{"text":"How investing works","url":"/en/personal/investing/how-does-investing-work"}},"componentType":"productHeader","coreHeader":{"body":"Are you thinking about investing in bonds? For example, because you want to improve the diversification in your investment portfolio, next to shares? Check below what you need to know about bonds in general. This page is an English translation of the original Dutch version.*","headerImage":{"extension":"png","original":"https://assets.ing.com/m/4d6851fc7f33d00/original/Duik-in-de-economie-Haven.png","transformBaseUrl":"https://assets.ing.com/transform/6505a806-3a8d-4363-b55f-ec13a2aa94ae/Duik-in-de-economie-Haven","type":"image","width":1034},"subtitle":"What are bonds and how do they work?","title":"Bonds"},"cta":{"componentType":"cta","textLink":{"text":"Start investing","url":"/particulier/beleggen"}}},"publishDate":"2026-04-02T10:57:14.916+02:00"}}