Bond Certificate
Posted By admin on April 6, 2010
Bond Certificate
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What are municipal bonds and are they safe as certificate of deposits?
and also, mind telling me how much taxes i would have to pay on annual C.D interest vs municipal bonds?
They are not as safe as a CD. Some munis are junk bond status. There is no federal tax on most, but not all muni bonds. Some are taxed. If you buy muni bonds issued in your state there are no state taxes either. The taxes on a CD are at your normal tax rate. CDs are paying such low interest these days that the taxes on them will not amount to a great deal.
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