Savings bonds are an easy way for individuals to loan money directly to the government and receive a return on their investment. Bonds are sold at less than face value, for example, a $50 Series EE bond may cost $25. Bonds accrue interest, and your gains are compounded, meaning that ...
.S. government. Unlike typical bonds that pay interest regularly, a savings bond is a zero-coupon bond, meaning it pays interest only when it is redeemed by the owner. The bond is also nontransferable, so it can’t be sold to someone else, which distinguishes it from more typical bonds...
Giftsavings bonds are technically just a version of Series EE and Series I savings bonds. However, you will go through a slightly different process to gift them. Once they are in your possession, you need to make sure your recipient has his or her own TreasuryDirect online account. As soon...
Ask your employer if it offers the Payroll Savings Plan. With this plan, you select an amount to be withheld from each paycheck and deposited directly into a TreasuryDirect account. This money is then automatically used to purchase savings bonds. Set up a TreasuryDirect account at the Treasury...
For those of us who purchased or received any type of savings bonds as a gift in the not-so-recent past, it may be time to give them another look. Eight of mine were 30-plus years old and had stopped accruing interest, so I opted to cash them. When it’s time to cash a savings...
The exact process will depend on the type of bond, but either a local bank or the Treasury Department can help you transform grandma’s gift into cash in hand. What are savings bonds? A savings bond is a type of debt security issued by the federal government to support its spending and...
Savings bonds are one of the few investment instruments that can be owned and also cashed in by a minor. In many cases, a minor can cash in her own bonds, and it would not be legal for someone else to redeem them. Only a very young child would need an ad
How to take full advantage of savings bonds.(Originated from Providence Journal-Bulletin)Downing, Neil
U.S. savings bonds can be a great investment. They are safe, offer a fixed interest rate, and are not subject to state or local income taxes. Whether you receivedU.S. Savings Bondsas agiftfrom your grandparents or bought them through apayrolldeduction on your first job, you may own U...
The timing depends on the characteristics of the bond and the value at which it was sold. Generally, a savings bond is sold as a zero-coupon bond at a discount and will reach its full value at maturity. Therefore, savings bonds have to mature to reach their total face value. The U...