What is a Mini-Bond?

A mini bond is similar to a regular savings bond. It is offered by local, state and federal agencies to entice investors who are seeking something smaller than a traditional bond. Most of the mini bonds are sold under the pretense that their interest will be exempt from income taxes. These bonds are generally considered as safe because they are backed by the issuing agency. When the bond matures, you are guaranteed to receive the money that is owed to you.

The people who can purchase mini bonds depend on the requirements of the entity selling the mini bond. If you are interested in purchasing a mini bond then you should locate a seller and discuss the requirements. Continue searching until you have found one with requirements you can meet, or take the necessary steps to meet the requirements.

Mini bonds have also been used as zero coupon bonds. The zero coupon bonds gained no interest, but their selling point was they were sold at a deep discount from their face values.