Are muni bonds a good investment?
Municipal bonds present several advantages over corporate bonds. While the interest on a corporate bond is likely to be higher, it’s not tax exempt. Mostmunicipal bonds are exempt from federal taxes. … If you invest in a municipal bond in another state, county or city you will likely have to pay taxes.
Are muni bonds safe?
Instead, most folks invest in municipal bonds through a bond fund. And that’s the way you should tap into these high-yield assets, because it’s much safer than buying munis on your own. … For one, municipal bonds aren’t like stocks, which are sold electronically all the time, in milliseconds