Welcome to Savings Guide
Savings Banks Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Savings Bonds – The Basics
from:Introduction
Saving bonds are basically debt securities which are issued by the U.S. Department of the Treasury in order to fund the U.S. government's borrowing needs.
Considered as one of the safest forms of investments in the US, savings bonds come in various types and categories and have a series of benefits associated with them.
Types of Saving Bonds
There are three main categories of savings bonds at the present. It is important to note that the categories of savings bonds might undergo changes over the due course of time.
The various categories include:
1. Series EE Bonds – Having replaced the earlier Series E bonds, these are purchased at a discount of half to their face value. As per the government regulations, in a given calendar year, you can only buy upto a face value of $5,000. These EE bonds increase in value in accordance with interest that accrues or accumulates. Such saving bonds pay an interest for 30 years and when the bonds mature, the buyer is paid the original investments, along with all the interest.
2. Series HH Bonds – The Series HH Bonds are those that can only be purchased in exchange for the Series EE or E binds and Savings Notes, or, alternatively, with the proceeds form a matured Series HH bond.
These savings bonds are purchased at their face amount, in $500 to $10,000 denominations, but carry no upper limit on the amount that can be purchased. In addition, they do not increase in value and have a maturity period of 20 years.
3. Series I Bonds – The savings bonds of this category are sold at face value and grow with inflation-indexed earnings for a period of up to 30 years. Bonds worth the amount of $5,000 can be bought in a particular calendar year.
Tax and Other Benefits
To begin with, savings bonds are regarded as the safest form of investment in US, being backed by the full faith and credit of the U.S. government.
The other numerous benefits of opting for savings bonds include:
• Federal taxes on the interest amount can be deferred until the buyer cashes in the bond or stops paying the interest at maturity.
• Saving bonds are exempt from the state and local taxes, helping you to save further
• Being registered with the U.S. Treasury's Bureau of Public Debt, these bonds can be replaced if the bond is lost, stolen or destroyed.
Considered as one of the safest and most lucrative form of investments in the U.S., these savings bonds find a large number of takers every year, especially amongst those looking at enjoying the tax benefits involved.
??
??
??
??
1
Savings Banks News
Fitch downgrades Spain savings banks
Fitch Ratings downgraded Spain's troubled regional savings banks on Wednesday, a fresh blow for the sector as it fights to restructure following the collapse of a building boom in 2008.
Read more...Belmont Savings Bank Announces New Branch Inside Shaw's
WALTHAM, Mass., Feb. 8, 2012 /PRNewswire/ -- BSB Bancorp, Inc., the holding company for Belmont Savings Bank, today announced a partnership with Shaw's Supermarket to open an in-store branch at Shaw's ...
Read more...How to Improve Yields on Your Cash Savings
SAN FRANCISCO, CA-- - Personal Capital , the online financial advisor where people manage their entire financial life on a single dashboard, has launched a new high-yield savings service to complement ...
Read more...A Drive to Bring Back Paper Savings Bonds Languishes Online
An online petition to bring back paper savings bonds has yet to gain traction.
Read more...Life Bancassurance in Europe: Investment-Related Life Insurance and Retirement Savings
NEW YORK, Feb. 2, 2012 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue: Life Bancassurance in Europe: Investment-Related Life Insurance and Retirement ...
Read more...Emigrant Savings Bank Chairman Howard Milstein Joins Mayor Michael Bloomberg to Celebrate Chinese Lunar New Year 4710
NEW YORK, Feb. 9, 2012 /PRNewswire/ -- Emigrant Savings Bank Chairman and CEO Howard P. Milstein joined New York City Mayor Michael Bloomberg last week at a reception celebrating the Lunar New Year 4710.(Photo: ...
Read more...Canadians paring down debt but not racking up savings, Royal Bank study suggests
TORONTO - The Royal Bank says Canadians are managing to pay down their debts but most haven't got any savings set aside for a rainy day.
Read more...BBVA will continue to bid for troubled banks
Spanish bank BBVA has already bid for Banco Pastor and presented an offer for Unnim, as well as participating in each and every auction of savings banks carried out by the Bank of Spain.
Read more...