Fixed-Rate Investing in 2026: Rates, Options, and How to Choose

Fixed Income · 2026 Investor Guide

By the Phoenix Energy Investor Relations Team · Last verified: June 2026 {{VERIFY: refresh date and every rate below on publish day}}

Fixed-rate investing means lending your money in exchange for a set interest rate paid on a predictable schedule, with your principal returned on a stated maturity date. You are the lender. The borrower, whether a bank, the U.S. government, or a company, pays you a fixed coupon and owes you the principal back at the end of the term. That is the trade: you give up the upside of stocks in return for income you can forecast and a defined payback date. The catch in 2026 is that not all fixed rates are close to each other. Insured bank products sit near 4%. Corporate bonds pay more because you take on the issuer’s credit risk. This guide shows the current numbers side by side, does the after-tax and after-inflation math most pages skip, and explains honestly where higher-yield options like 9% to 13% energy bonds fit, and where they do not.

What do fixed-rate investments pay right now?

Most guides on this topic are evergreen and quote no live numbers. Here is the current landscape, which is the fastest way to see why the same “fixed and safe” label covers products paying 0.4% and products paying 13%.

Instrument	Typical yield	Backing / risk	Source & date
National average savings	~0.38%	FDIC insured	Bankrate, Jun 2026
High-yield savings (top)	~4.1% to 4.2%	FDIC insured	Bankrate, Jun 2026
1-year CD (top)	~4.15%	FDIC insured	Bankrate, Jun 2026
5-year CD (top)	~4.20%	FDIC insured	Bankrate, Jun 2026
Money market fund (7-day)	~3.45%	Not insured	Crane 100, Jun 12 2026
2-year U.S. Treasury	~4.19%	U.S. government	U.S. Treasury, Jun 18 2026
10-year U.S. Treasury	~4.46%	U.S. government	U.S. Treasury, Jun 18 2026
I Bond (composite)	4.26%	U.S. government	TreasuryDirect, May 2026
Investment-grade corporates	~5.1%	Issuer credit	ICE BofA index, mid-2026
High-yield corporates	~6.9%	Issuer credit	FRED, Jun 2 2026
Phoenix Energy bonds	9% to 13%	Issuer credit, oil & gas backed	Phoenix Energy, 2026

All figures as of June 2026 and subject to change. {{VERIFY: confirm every rate and the Phoenix offering status before publishing}}

How does fixed income actually work?

Every fixed-income investment is a loan with three terms: the rate (your coupon), the term (how long until maturity), and the issuer (who owes you the money). Unlike a variable-rate product, a fixed-rate investment pays the same stated rate for the life of the term, so your income does not drop if market rates fall. The issuer’s job is to make every interest payment on time and return your principal at maturity. Your job is to judge whether that issuer can. Two forces move the value of a fixed-rate holding before maturity. When market interest rates rise, the resale price of an existing bond falls, because new bonds pay more. When the issuer’s financial health weakens, the risk of missed payments rises. Hold a bond or CD to maturity and day-to-day price swings stop mattering, as long as the issuer stays solvent.

What are the main types of fixed-rate investments?

Investors usually choose among five buckets. Each pays a fixed rate, but the backing and the tradeoffs differ sharply.

Government bonds and Treasuries

U.S. Treasury bills, notes, and bonds are loans to the federal government, backed by its full faith and credit. They are treated as the lowest-risk fixed-income investment available, which is also why they pay among the lowest rates. A useful bonus: Treasury interest is exempt from state and local income tax, which raises its real value for investors in high-tax states.

Corporate bonds

Corporate bonds are loans to a company for a defined term, with principal typically repaid at maturity. Because a company can default in ways the U.S. Treasury cannot, corporate bonds pay higher rates to compensate for that credit risk. Investment-grade names average near 5.1% in mid-2026, high-yield issuers near 6.9%, and individual high-yield issuers can pay into the double digits. Phoenix Energy bonds sit in this category at 9% to 13%. {{VERIFY: rates}}

Certificates of deposit (CDs)

CDs are time deposits from banks and credit unions that pay a fixed rate for a set term, usually 28 days to 5 years. They are very safe against default, since FDIC or NCUA insurance covers up to $250,000 per depositor, per institution. The tradeoffs are liquidity and inflation: withdraw early and you typically pay a penalty, and a locked low rate can be outpaced if inflation or market rates climb.

Annuities

Annuities are contracts with an insurance company that provide regular payments, often for many years. They come in fixed, variable, and indexed forms and can suit long-horizon income planning. They are also the most complex option here. Fees, surrender charges, and tax treatment vary widely, and the guarantee is only as strong as the insurer behind it, since annuities are not FDIC insured.

Money market funds, munis, and TIPS

Three more options round out the menu. Money market funds hold short-term debt and pay a floating rate near 3.45% in mid-2026, with daily liquidity but no insurance. Municipal bonds pay interest that is often exempt from federal tax, and sometimes state tax, which can make a modest headline rate competitive after tax. Treasury Inflation-Protected Securities (TIPS) and I Bonds adjust with inflation, trading some fixed yield for a hedge against rising prices.

Fixed income compared side by side

The differences that matter are income type, who stands behind the principal, how liquid it is, and how it is taxed. This table puts the four core options against each other.

Factor	Government bonds	CDs	Annuities	Corporate bonds
Best for	Capital preservation, ballast	Short-term safe savings	Long-term guaranteed income	Higher income from the same dollar
Typical return	Lower	Low to modest	Varies, often capped	Higher, varies by issuer
Principal backing	U.S. government	FDIC/NCUA to limits	Insurer claims-paying ability	Issuer credit only
Liquidity	High, esp. Treasuries	Low, early-withdrawal penalty	Low during surrender period	Varies, some non-tradeable
Main risk	Inflation, rate moves	Inflation, lock-in	Fees, complexity, liquidity	Issuer default
Taxes	Federal only on Treasuries	Ordinary income	Tax-deferred growth	Ordinary income

Why investors hold fixed income

Fixed-income investments are used to produce predictable income, soften portfolio swings, and balance equity exposure. Four advantages drive that.

What are the risks and tradeoffs?

Every fixed-income security carries risk. These are widely understood and usually managed with diversification, duration planning, and careful issuer selection. How investors manage these risks: diversifying across issuers and sectors, matching bond duration to their time horizon, sizing each position to their risk tolerance, and pairing fixed income with other assets rather than concentrating in one issuer.

Which fixed-rate investment fits your goal?

The fastest way to choose is to start from what you need the money to do, not from the instrument.

If your goal is…	Start with	Why
Protect principal you may need soon	High-yield savings, short CDs, T-bills	Insured or government-backed, liquid, minimal price risk
Guaranteed long-term income	Annuities, long Treasuries, bond ladders	Locks income for years, trades liquidity for certainty
Hedge inflation	I Bonds, TIPS	Payments adjust upward when prices rise
Maximize income from each dollar	Corporate bonds, including high-yield	Higher coupons in exchange for issuer credit risk

A 2026 reality check: after tax and after inflation

To show why the headline rate is not the whole story, we ran the current numbers through two filters competitors rarely apply: federal income tax and inflation. The method is simple. Take each rate from the table above, subtract ordinary income tax at a 32% bracket for fully taxable interest, then subtract a 3% inflation assumption to estimate the real, spendable return. {{VERIFY: confirm inflation assumption against current CPI and the 10-year breakeven from FRED T10YIE before publishing}}

Option	Stated rate	After 32% tax	After 3% inflation
1-year CD	4.15%	2.82%	about -0.18%
10-year Treasury (no state tax)	4.46%	3.03%	about 0.03%
High-yield corporate (avg)	6.90%	4.69%	about 1.69%
Phoenix Energy bond (low end)	9.00%	6.12%	about 3.12%
Phoenix Energy bond (high end)	13.00%	8.84%	about 5.84%

The finding that surprises most investors: at a 32% bracket with 3% inflation, a top 1-year CD produces a slightly negative real return, while the spread between a CD and a 9% bond is far wider after tax and inflation than the headline 4.85-point gap suggests. This is also why ordinary-income holdings often belong in a tax-deferred IRA, where the tax line disappears until withdrawal. {{VERIFY: math and assumptions}}

Where do 9% to 13% bonds fit, honestly?

A rate well above the 6.9% high-yield average is not free money. It is the market quoting a price for specific risks, and a credible guide names them. Higher-yield corporate bonds, including energy bonds, typically carry three things a CD does not: single-issuer concentration rather than a diversified pool, limited liquidity if the bond is not freely tradeable, and exposure to the issuer’s industry, which for energy includes commodity prices. There is no FDIC or Treasury backstop. If the issuer cannot pay, you can lose some or all of your principal. The honest framing is a spectrum. Insured products anchor the safe end at about 4%. Investment-grade corporates sit near 5.1%, high-yield near 6.9%, and individual issuers like Phoenix Energy reach 9% to 13% by asking investors to take concentrated, illiquid, sector-specific credit risk in exchange for the higher coupon. Whether that tradeoff is right depends on your timeline, your tolerance for illiquidity, and how much of your portfolio any single issuer should hold. {{VERIFY: rates}}

Phoenix Energy bonds: fixed-rate corporate bonds backed by oil and gas

Phoenix Energy is an oil and gas company focused on drilling operations in the Williston Basin. Its corporate bonds pay 9% to 13% fixed annual interest, and unlike a bond fund, they are backed by real oil and gas production rather than a basket of paper securities. {{VERIFY: rates and business description}} The company offers two structures, one open to every investor and one limited to accredited investors. What sets the offering apart for income investors is the combination of access and transparency. The registered bonds carry a low $5,000 entry point and a monthly income option, they are IRA eligible, and Phoenix Energy files its financials publicly with the SEC so investors can read the same numbers the company reports. The track record is also disclosed rather than implied: as of March 31, 2026, the company reports $266.9 million paid to bondholders, more than 6,970 bondholders, and a 97% satisfaction rate from its March 2026 bondholder poll. Past performance does not guarantee future results. {{VERIFY: $266.9M, 6,970 bondholders, 97% satisfaction, dates}}

Frequently asked questions

Is fixed-rate investing safe right now?

Safety depends entirely on the instrument. FDIC-insured CDs and U.S. Treasuries carry minimal default risk, while corporate and high-yield bonds carry issuer credit risk and can lose principal. In 2026 there is also interest-rate risk, since the Federal Reserve has signaled it may raise rates rather than cut them, which pressures the resale value of existing bonds. {{VERIFY: Fed stance}}

What is the difference between corporate bonds and CDs?

A CD is an insured bank deposit that returns principal at maturity, with rates near 4.2% in mid-2026. A corporate bond is an uninsured loan to a company that pays more, near 5.1% for investment grade and 6.9% or higher for high-yield, in exchange for taking on the issuer’s credit risk. CDs win on safety, corporate bonds win on income. {{VERIFY: rates}}

Can you hold corporate bonds or CDs in an IRA?

Yes. Both can be held in a traditional or Roth IRA, and many private corporate bonds can be held through a self-directed IRA. Because bond and CD interest is taxed as ordinary income, holding these inside a tax-deferred account is a common way to defer that tax. Withdrawals before age 59 and a half may trigger taxes and penalties, so review your plan rules first.

Why do some bonds pay 9% to 13% when CDs pay about 4%?

The extra yield is compensation for extra risk. A bond paying 9% to 13% is typically uninsured, tied to a single issuer, less liquid than a CD, and often exposed to one industry. Investors who accept those risks are paid more. Investors who cannot should stay lower on the ladder. {{VERIFY: rates}}

Is it better to lock in fixed rates now or wait?

The conventional advice is to lock long-term rates before the Fed cuts. In June 2026 that logic is weaker, because the Fed’s own projections turned toward possible hikes. Laddering, where you stagger maturities, is a common way to avoid betting on rate direction. {{VERIFY: Fed projection}}

Can you lose money in fixed income?

Yes, in two ways. If you sell a bond before maturity after rates have risen, you can take a market loss. And if an issuer defaults, you can lose some or all of your principal. Insured CDs and Treasuries remove most of that risk if held to maturity; corporate and high-yield bonds do not.

Fixed-rate investing is not one decision but a series of them: how much safety you need, how much income you want, how long you can lock the money up, and how much issuer risk you will accept for a higher coupon. Start from the goal, read the current numbers, and run the after-tax math before you commit. To go deeper on Phoenix Energy’s bonds, visit the Phoenix Energy homepage or the investor FAQ.

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More from Phoenix Energy: Offerings, Bondholder Guide, Join a Webinar, and Investor FAQ.