For investors looking for a stable stream of income, CDs and bonds are a good place to start.<br />According to Business Insider, although the two financial instruments have much in common, they are distinctly different in several key areas.<br />For example, CDs are insured by banks--bonds are not. Bonds are traded on the open market--CDs are not. Bonds can be liquidated quickly, but CDs tie up your money.<br />Government-issued bond yields aren't taxed. But if you are in, say, the 24% tax bracket, you'll be taxed $24 for every $100 you earn in interest on your CD.<br />Also, bonds have long-term maturity dates, from at least 10 to as long as 30 years. However, CDs usually mature within five years.
