Buying state bonds can provide you with an alternative form of investment to stocks and mutual funds. State bonds carry with them several unique advantages. Here are the basics of how to buy state bonds and why you may want to consider them. 

How to Buy

Every state does things a little bit differently when it comes to buying state bonds. In order to find out the proper way to buy bonds for your chosen state, you should call the state treasurer. They will be able to tell you whether you can buy them directly from the state or need to go through a broker. Many states require you to go through a bond broker. In this case, you will have to open up a bond brokerage account, which typically carries with it a $5000 minimum deposit. 

Why State Bonds

Buying state bonds is an extremely safe investment. You can feel relatively comfortable that the state will not go bankrupt. They also pay you a regular interest payment. While it may be a lower rate of interest compared to other bonds, the interest that you make off of these types of bonds is generally not taxable. 

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