How to Double Your Money [8/9]: Tax Free Bonds

Tax free bonds are issued by government enterprises which offer fixed payment of interest in return for borrowed money for a specified period. You don't have to pay any tax on the interest earned from these bonds. They typically have long term maturity of 10, 15 or 20 years. Tax free bonds can be transacted in stock exchanges. These bonds give return of around 11%-12% if bought at the time of it's issue. While, it gives a return of 9-9.5% if bought at stock exchange.

Tax-free bonds are suitable for investors looking for a steady source of income annually and can afford to lock-in their capital for the long term. Tax free bonds are a risk free investment option to double money. Watch our video to know more about it.