Tax-Free Bonds To Become An Attractive Option:

According to some financial experts, investors in the higher tax bracket, tax-free bonds will be an attractive option when banks fixed deposit rates come down. This will lure in more and more investors to feel free to invest.

The Tenure:

However, the tenure of these tax free bonds are for 10, 15 or 20 years. But the interest on these bonds is paid twice a year or annually. The minimum denomination of these bonds can vary from 1,000 to 5,000. This is because Tax-free bonds have low default risk as they are issued by government-backed entities. Credit agencies rate these instruments after assessing the financial health of the entities issuing the bonds.

Read More: 7 Secrets Of Credit Cards That Mess Up Your Life Real Bad

States Will Have To Finance Loss-Making Discoms: FM Arun Jaitley