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

Munis finance things like medical facilities, schools, power plants, streets, office structures, airports, bridges and the like. Towns normally provide bonds when they need more cash than they collect through taxes. The good idea about community bonds is that you don't have to pay federal income taxes on the interest they make.

While business bonds are a greater danger than federal government bonds, they can make a lot more money. There's likewise a much larger selection of business bonds. The disadvantage is that you do need to pay federal income tax on the

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