The U.S. federal government provides its own bonds from the treasury and from several federal government companies. Those developing in less than one year are understood as T-bills. Bonds that develop in one to ten years are T-notes, and those that take more than 10 years to mature are treasury bonds. Sometimes, you do not need to pay state or local income taxes on the interest they make.

Munis financing things like hospitals, schools, power plants, streets, workplace buildings, airports, bridges and the like. Municipalities typically issue bonds when they need more cash than they gather through taxes. The excellent thing about community bonds is that you do not need to pay federal earnings taxes on the interest they make.

While business bonds are a greater threat than government bonds, they can earn a lot more cash. There's also a much larger selection of business bonds. The downside is that you do have to pay federal earnings

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