Money market funds that invest primarily in municipal securities like municipal bonds and short-term notes offer highly liquid, low-risk investment with tax-free income. Tax-free bonds are an attractive investment for high-income investors who are looking to minimize tax burden. The most widely available type is municipal bonds, which provide tax-exempt income from federal, and sometimes state and local, taxes. Other tax-free types include qualified 501(c)(3) bonds, those used for financing nonprofit organizations, and Build America Bonds, where a federal subsidy was provided to issuers. Finally, Treasury bonds are exempt from some state and local taxes, and tax-free money market funds provide investors with a low-risk, tax-efficient investment opportunity. All tax-free bonds should be considered in the context of an investor's tax bracket, the type of bond, and the creditworthiness of its issuer to ensure that they get value for their portfolio.