Demand For Bonds In Minnesota
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Municipal bonds are generally referred to as tax-exempt bonds because the interest earned on the bonds often is excluded from gross income for federal income tax purposes and, in some cases, is also exempt from state and local income taxes.
Common examples include: Clothing for general use, see Clothing. Food (grocery items), see Food and Food Ingredients. Prescription and over-the-counter drugs for humans, see Drugs.
The state's current ratings on general obligation bonds are: Moody's Aaa. Standard & Poors AAA.
Income Tax Fact Sheet 13. Interest income you received from U.S. bonds, bills, notes and other obligations is taxable by the federal government and generally exempt from Minnesota income tax.
Interest earned on certain U.S. bonds is subject to federal tax but is generally not subject to Minnesota tax.
If you want to buy a municipal bond, pretty much your only option is to find a reputable broker. The reason is pretty straightforward. There is a deep and robust regulatory scheme focused on brokers designed to protect investors. Selling bonds directly would sidestep those protections.
Interest on a bond that is used to finance government operations generally is not taxable if the bond is issued by a state, the District of Columbia, a U.S. possession, or any of their political subdivisions.
Electronic or paper? As of January 1, 2025, I bonds are only available alectronically. You can buy them in your TreasuryDirect account.
If you're a Schwab client investing in municipal bonds through mutual funds or exchange-traded funds (ETFs), you can find the ratings distribution and breakdown of GO and revenue bonds on the "Portfolio" tab on Schwab.
TreasuryDirect is the official United States government application in which you can buy and keep savings bonds. To buy a savings bond in TreasuryDirect: Go to your TreasuryDirect account. Choose BuyDirect.
