- High liquidity: Listing on National Exchanges (NSE or BSE or both) ensure that they can be traded in easily
- No risk: Tax free bonds issued by Public Sector Units (PSUs) usually come with the highest credit ratings of 'AAA' or more
- Returns are tax-free: Returns are not part of taxable income for the entire tenure of the Bond
- Stable Interest income: Tax Free Bonds offer stable interest income when the bank interest rates fluctuate.