Different types of bonds

Investing in bonds is very safe and the benefits are generally very good. There are four basic types of bonds available and sold companies, State and local governments, and foreign Governments, through the Government.

Biggest bonus is that you get your initial investment. This makes links investment vehicle ideal for those new to invest or for those who have a low risk tolerance.

The United States Government sells Treasury bonds by the Department of the Treasury. Can bonds from the Treasury with maturities of three months to thirty years purchase.

Treasury bonds include Treasury bills (T-Notes), Treasury bills (T-facturas) and Treasury bonds. Government bonds are supported by the Government of the United States, and it is only imposed the interest you earn rewards.

Corporate bonds are sold through public securities markets. A corporate bond is a company mainly selling their debt. Corporate bonds usually have high interest rates, but a little adventurous. If the company goes belly up, the link is useless.

Sell also state and local governments. Unlike bonds, these bonds by the Federal Government have generally higher interest rates. This is because the State and local governments can break actual - in contrast to the Federal Government.

State and local government bonds are tax-free income - also in the interest. State and local taxes may also apply. State and local government bonds tax free municipal bonds are common.

Purchases of foreign bonds is really very difficult and often done as part of a mutual fund. It is often very risky to invest abroad. Secure link type to buy is one issued by the Government.

Interest may be slightly slower, but again, there are little or no risk involved. You get best results when the bond matures, a Reinvertirlo on another link.