The City of Cambridge is offering Cambridge residents the chance to directly invest in Cambridge by buying minibonds. The City will use minibond proceeds to support capital projects such as school building renovations, municipal facility upgrades, and implementation of the Complete Streets plan.
What is a minibond?
A minibond is like a traditional municipal bond in which you loan money to a city or public agency for an agreed period of time, receive interest on your investment, and get your loan paid back when the bonds mature. Minibonds are different because you can purchase them for as little as $1,000.
Why should I invest in a minibond?
Minibonds enable you to earn interest and invest for the future while supporting the Cambridge capital budget. Interest you earn on minibonds is expected to be exempt from both federal and state income taxes. The interest rate for minibonds is 1.6%, they will mature in 5 years, and interest will be paid semi-annually. Minibonds may not necessarily be suitable for all investors and prior to completing any sale, Neighborly Securities or another broker-dealer will determine suitability for investors in accordance with applicable laws and regulations.
I still have more questions.
Neighborly representatives will be at Cambridge City Hall on February 15th and 21st from 6-8pm to provide assistance and discuss the minibond process. Visit our FAQs page to find out more.
I'm in! How do I sign up?
Residents who are interested in buying Cambridge minibonds must visit Neighborly to create a profile. Neighborly is not affiliated with the City of Cambridge in any way, other than as the broker-dealer for this sale of minibonds.
Orders for minibonds are now open until February 23, 2017 at 12 pm EST and will be accepted on a first-come, first-served basis.