Munis

Munis, short for municipal bonds, are debt securities issued by local governments or their agencies to finance public projects like schools, highways, or infrastructure. When you buy a muni bond, you are essentially lending money to the issuer in exchange for periodic interest payments and the return of your principal amount at maturity. They are popular among investors because the interest earned is often exempt from federal income tax, and sometimes from state and local taxes as well, making them an attractive option for those seeking tax-efficient investment.