Rates on bonds and bank CDs have plunged in recent years, leaving many investors struggling to find income. But one surprising bond investment has looked increasingly attractive for ordinary investors in the current rate environment.

In the following video, Motley Fool investment planning editor Lauren Kuczala talks with longtime Fool contributor and financial planner Dan Caplinger about this interesting bond investment. In going into detail on these bonds, Dan notes the two main types available, and points out their respective pros and cons, along with some special features that they offer. These bonds won't be appropriate for everyone, and they come with some significant limitations, but for the right investors, they're worth considering as part of your overall investment portfolio.

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The article This Surprising Bond Investment Has Some Smart Benefits originally appeared on Fool.com.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow Dan on Twitter @DanCaplinger. Lauren Kuczala has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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