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Savings bonds may not be sexy, but they’re one of the safest ways to invest money. While most investment options come with plenty of risk and fluctuation, savings bonds are as close to sure things as you can get; they generally pay more interest than any other savings vehicle, with very little chance of losing your initial investment. This guide will tell you everything you need to know about how to purchase savings bonds so that you can grow your wealth safely.
How do I get started?
The first step is to decide which type of savings bond you would like to purchase. There are two types of savings bonds: Series EE and Series I. Series EE bonds are guaranteed to double in value after 20 years, while Series I bonds earn a variable rate of interest that is based on inflation.
What are my options?
When you purchase a savings bond, you are essentially lending money to the U.S. government. In return, the government promises to pay you back with interest. The two main types of savings bonds are Series EE and Series I bonds. Series EE bonds are easier to purchase and have a fixed rate of interest, while Series I bonds have a variable rate of interest that is linked to inflation.
Which option is best for me?
When you purchase a savings bond, you are essentially lending money to the U.S. government. In return, the government promises to pay you back with interest. The two main types of savings bonds are Series EE and Series I bonds. Series EE bonds are easier to purchase and have a guaranteed rate of return, while Series I bonds earn a variable rate of return based on inflation.
Where can I purchase U.S. Savings Bonds?
You can purchase U.S. Savings Bonds at most banks, or directly from the U.S. Treasury at www.treasurydirect.gov.Savings bonds are a great way to grow your wealth over time, as they are backed by the full faith and credit of the United States government and earn interest over the life of the bond.
How do I access my account information?
You can easily access your account information by logging into your online account. From there, you will be able to see all of your account details including your balance, transactions, and more. If you have any questions, you can always contact customer service for help.
When should I redeem my bond?
The general rule of thumb is to hold your bonds until they reach maturity. This ensures you get the full face value of your bond plus any interest that has accrued. If you need the money before the bond matures, you can redeem it early, but you will forfeit some interest. You can cash in your bonds at most banks or credit unions, or through the Treasury Direct website.
Who can purchase U.S. Savings Bonds?
Just about anyone can buy U.S. Savings Bonds. You can purchase them through a financial institution like a bank or credit union, or directly from the U.S. Treasury at treasurydirect.gov. There is no minimum purchase amount, and you can buy bonds in increments of $25 up to $10,000 per transaction.
Is there a minimum investment amount?
You can purchase a savings bond for as little as $25. However, if you want to purchase a bond in someone else’s name, the minimum amount is $50.
Can I pay in installments or make partial payments on my U.S. Savings Bond?
You can make partial payments on your savings bonds, but there is a limit. You can only make up to five partial payments in a 12-month period. After that, you’ll need to wait six months before making another partial payment.
Can I transfer, sell, trade, or give my U.S. Savings Bond?
Yes, you can transfer your savings bonds. You might do this if you want to give the bond as a gift or if you need the money and want to cash in the bond. You can also sell your savings bonds through a financial institution or on a secondary market. And finally, you can trade your bonds for other investments, though this is generally not recommended.