The U.S. government provides its own bonds from the treasury and from several federal government firms. Those maturing in less than one year are called T-bills. Bonds that develop in one to ten years are T-notes, and those that take more than ten years to mature are treasury bonds. Sometimes, you don't need to pay state or local income taxes on the interest they make.

Munis finance things like healthcare facilities, schools, power plants, streets, office complex, airports, bridges and so forth. Towns generally provide bonds when they need more cash than they gather through taxes. The advantage about municipal bonds is that you don't have to pay federal earnings taxes on the interest they earn.

While business bonds are a greater danger than government bonds, they can make a lot more money. There's also a much larger choice of business bonds. The downside is that you do need to pay federal earnings tax on the interest they make. Particularly

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