Redeeming Your Municipal Bond

Investing in a municipal bond can be a good way to provide yourself with tax-free interest income. When the bond matures, you will need to redeem it in order to get back your original investment. Here are a few things to consider about redeeming your municipal bond.

Redeeming Your Bond

When you invest in a municipal bond, you are most likely going to put a large sum of money into it. In most cases, you will have to invest at least $5000. This means that you will at some point want to get that original investment back. With municipal bonds, you can simply redeem your bond and get your initial investment back after collecting interest for a number of years.

Where to Redeem

When a municipality issues bonds, it works through a financial institution or a trustee. In most cases,it is going to work with a local bank in order to get this done. This means that you should be able to take your bond to your local bank and redeem it for the original value that you invested. In some cases, you can also take the bond to the municipality itself and get your money back.

blog comments powered by Disqus