The U.S. government provides its own bonds from the treasury and from numerous federal government companies. Those maturing in less than one year are referred to as T-bills. Bonds that grow in one to 10 years are T-notes, and those that take more than ten years to grow are treasury bonds. In some cases, you don't need to pay state or regional income taxes on the interest they make.

Munis finance things like medical facilities, schools, power plants, streets, office complex, airports, bridges and so on. Towns generally provide bonds when they require more money than they collect through taxes. The good idea about community bonds is that you don't need to pay federal earnings taxes on the interest they earn.

While corporate bonds are a higher risk than government bonds, they can make a lot more cash. There's likewise a much bigger choice of business bonds. The downside is that you do need to pay federal earnings tax on the interest

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