Ask Terry Questions municipal bonds vs 26 week T-bills

municipal bonds vs 26 week T-bills

By Terry Savage on August 22, 2018 | Chicken Money

which one would yield the best interest rate? I already own T-Bills 26 weeks paying 2.234% interest

Terry Says

The answer to that question depends on your tax bracket, and the quality of the municipal bonds and their maturity — both of which determine their yield.
Tax free bonds are attractive if you are in a higher tax bracket. And the yields may be higher depending on the maturity of the bond and the “quality rating” of the bond.
It’s not worth chasing higher after-tax yields if you’re taking more risk. And EVERY municipal bond carries more risk than short-term treasury bills!



a personal
finance question