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Fixed-income security definition
An investment that pays you a set amount of money at regular intervals.
What is a fixed-income security?
A fixed-income security is a type of investment that pays you a set amount of money at regular intervals – kind of like earning interest on a savings account. The most common examples are bonds, where you lend money to a government or company in exchange for fixed interest payments (also called coupons) and your money back at the end of the term.
Fixed-income securities are generally seen as lower risk than stocks because they provide steady, predictable returns. However, they’re not completely risk-free – if the issuer struggles financially, they might not be able to pay you back.
Investing glossary
It's important you know
Capital at risk. All investing should be for the longer term. The value of your investments can go up and down, and you may get back less than you invest. Tax treatment depends on individual circumstances and may be subject to change in the future.
A 25% government penalty applies if you withdraw money from a Lifetime ISA for any reason other than buying your first home (up to £450,000) or for retirement, and you may get back less than you paid into your Lifetime ISA.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Payments you make into your pension won’t be accessible until the minimum pension age (currently 55, increasing to age 57 from 2028). Tax treatment depends on individual circumstances and may be subject to change in the future.