Welcome to Savings Guide
Government Savings Bonds Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
United States Savings Bonds – An Insight
from:Introduction
The need to encourage a larger section of the citizens to build up their savings and also to develop a reservoir to fund the government’s borrowing needs, led the US government to develop lucrative schemes such as the United States Savings Bonds.
Widely regarded as one of the safest forms of investments in the US, these savings bonds are basically the debt securities issued by the U.S. Department of the Treasury, offered in a series of categories and denominations.
Key Benefits
There are a host of benefits that are associated with the purchase of the United States savings bonds.
The most important benefit of this form of investment in the US is that it is the safest way to secure and earn from your savings, the bonds being fully backed by the faith and credit of the U.S. government.
In addition to this, the federal taxes on the interest amount that is earned can be deferred until the buyer cashes in the bond, or alternatively, stops paying the interest at maturity. The United States savings bonds are also exempt from the state and local taxes, helping you save further.
Moreover, since these bonds are registered with the U.S. Treasury’s Bureau of Public Debt, they can be easily replaced in case the bonds get lost, stolen, mutilated or even destroyed.
Categories of US Saving Bonds
There are three main categories of US Saving Bonds that are currently being issued, though these categories might be subject to change form time to time.
Below we’ve included a brief description of each one of these.
a) Series EE Bonds – This category of the United States savings bonds are purchased at a price, half to that of the face value. The government allows the investor to purchase only bonds worth $5,000 up to face value in a given calendar year. The value of the EE bonds further increases in accordance with the interest that accumulates. Such bonds also pay an interest for a period of 30 years and upon maturity, the investor is paid the original investments along with the amount of interest that has accrued.
b) Series HH Bonds – This type of bonds can only be purchased in exchange for the Series EE or E bonds, Savings Notes or with the proceeds from a matured Series HH bond. Purchased at their face value in the denominations of $500 to $10,000, these bonds carry no upper limit. However they don’t increase in value and have a maturity period of 20 years in all.
c) Series I Bonds – These bonds are sold at face value and grow with inflation-indexed earnings for a period up to 30 years. Moreover, these bonds also have an upper limit of $5,000 that can be bought in a particular calendar year.
??
??
??
??
1
Government Savings Bonds News
Bonds offer a good deal but not without risk
SAVERS have been warned against viewing corporate bonds as a panacea for their income woes after advisers raised concerns that many people underestimate the risks of investing
Read more...Fitch Rates Jacksonville, FL's Special Rev Bonds 'AA'; Outlook Stable
NEW YORK--(BUSINESS WIRE)--Fitch Ratings assigns a rating of 'AA' to the following Jacksonville, Florida special revenue bonds: --$51,690,000 series 2010A-1; --$40,865,000 taxable series 2010A-2 (direct payment Build America Bonds). The Rating Outlook is Stable. The bonds are scheduled to sell via negotiation on Sept. 15. In addition, Fitch affirms the following ratings with a Stable Outlook ...
Read more...Nigeria Plans $1 Billion Wealth Fund to Spur Growth
Nigeria’s government is targeting economic growth of 10 percent as it creates an oil-financed infrastructure fund, encourages foreign investment in the power industry and abolishes fuel subsidies that have drained the national purse, Finance Minister Olusegun Aganga said.
Read more...Franklin County eligible for $4M in low-interest bonds
Franklin County Commissioners on Thursday made the county eligible for nearly $4 million in low-interest bonds that could create jobs and save taxpayers money.
Read more...Coalition on the right track
The British coalition government, formed after the last election between the Conservatives and the Liberal Democrats, has not only survived its first quarter in power but has launched some significant reforms that could change the way Britain is governed. One immediate and welcome change has been the renewal of the importance of the Cabinet as the central organ of government and confirmation ...
Read more...Lisa Twaronite's This Week in Japan: 'Ozawa shock' roils Japanese government bonds
Ichiro Ozawa, an unpopular but stubborn Japanese politician, might end up being just the catalyst some hedge funds have been waiting for, amid the latest maneuvering for power in Tokyo.
Read more...Bank Deposits Drop as Greeks Use Savings Amid Crisis
Marina Efthymiou, who works in a state-run call center in the Greek capital of Athens, is tapping her bank savings to meet living expenses after her income declined amid the country’s debt crisis.
Read more...Haddon Heights mayor touts political experience on business' website
When Haddon Heights Mayor Scott Alexander launched a website for his consulting business last month, he targeted municipal and school officials looking to develop a presence on Twitter or set up a system to pay parking tickets online.
Read more...