How Do School Bonds Work?

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School bonds are a way of raising money to help build, remodel or modernize schools, and in general, these are local public schools. Discover how interest is offered on returns for school bonds with help from a licensed financial planner in this free video on bonds and investing.

Part of the Video Series: Bond Investing
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Video Transcript

Hi my name is Bill Rae. I'm with Alumni Financial Services. I've been in the business of the finance world for well over 20 years and your question is how do school bonds work? That's an excellent question. First of all let me tell you that we're not here to offer any advice on the purchasing of stocks or bonds, just to have an understanding of what verbiage we're talking about here, in other words school bonds. Well bonds in the finance world means a debt that an authorized issuer owes to a holder in other words a borrower. So school bonds are a way of raising money to help build or remodel or help modernize schools, generally your local public schools. So a school bond simply is a way to raise money to accomplish these things and of course they're going to offer you a return on your money commonly called interest. That's as easy as it is but as always we urge you understand what it is that you're getting involved with. Understand what is required of you. How and when can you get your money back and what type of interest should you expect? We also urge that you seek guidance from a licensed professional. My name is Bill Rae. I'm with Alumni Financial Services and we always are here to help you build wealth.


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