Welcome to Savings Guide
Savings Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Knowing the US Savings Bonds
from:Introduction
The government of any state or country always strives to offer enhanced and lucrative services to their citizens to encourage investments. The US savings bonds are one such form of investment options offered by the US Treasury, with the aim of funding the government's borrowing needs and also encourage savings and investments.
Key Aspects
The US savings bonds are basically defined as debt securities which are issued by the US Department of the Treasury, also termed as obligations of the US government. The most significant aspect of these bonds is that they are exempt from state and local income taxes.
These US savings bonds can be easily purchased from commercial banks or through an employer by payroll deductions. Consequently, these bonds can also be redeemed at many of the banks or alternatively, directly with a branch of the Federal Reserve Bank. The fastest way to encash a bond is to use your own bank, credit union or savings, though some documentation might be required for the purpose.
Another aspect about the US savings bonds, which is important to know, is that at the time of purchase, these bonds can be registered to a single person, to two people or can be registered to a primary owner and a beneficiary. Besides, the interest from the US savings bonds can also be excluded if used to pay higher education expenses, such as the likes of college tuition.
There are two main types of US savings bonds which are currently being issued. Below, we have given a brief description of each one of these.
1. I Bonds – These bonds are issued either on paper or electronically. Purchased at face value denomination, the minimum purchase amount is $50 for a bond issued on paper, $25 for a bonds purchased electronically, via Treasury Direct. These bonds are an accrual-type security, which means that the interest is added to the bond monthly.
2. Series EE Bonds – These bonds are issued on paper as well as electronically. Paper bonds are purchased at half their face value or denomination, while the electronic bonds are purchased at face value. The minimum purchase amount is $25 for a $50 paper bond and $25 for an electronic bond, from Treasury Direct.
For both the Series I as well as the Series EE US savings bonds, the interest can be deferred or declared on your taxes annually.
In case, your US savings bonds are lost, stolen, destroyed or mutilated, you are required to furnish a prompt notice to the Department of Treasury with all the possible details of the bonds, which will then be replaced accordingly.
1
Other Savings related Articles
Thrift Savings Plan
Day Light Savings Time
Savings Bond
Health Savings Accounts
Savings Bond Calculator
Do you want to contribute to our site : submit your articles HERE
Savings Specific links
Savings News
Five Dumbest Things on Wall Street: Sept. 5 - Street.Com
Revlon's Ugly Truth Ronald Perelman apparently cares more about supermodels than shareholders. In the name of cost savings, his Revlon ( REV - Cramer's Take - Stockpickr ) business announced plans this week to cut $170 million from its debt by ...
Read more...LCC International Raises $9M Working Capital and Announces 2008 ... - MSN MoneyCentral
LCC International, Inc. LCCI today announced that the Company has entered into an agreement with its current lender (Bank of America) to obtain an additional $9M working capital supported by a limited guaranty by two existing LCC preferred ...
Read more...Abbey aims to get 'back to the basics of savings’ with launch of two ... - Daily Telegraph
The Bank of England base rate may have been kept on hold at 5pc this week, but banks and building societies continue to launch high interest-paying accounts in a bid to entice savers. On Monday, Abbey will introduce a Fixed Rate Reward Saver account ...
Read more...Greenspan: Don't Use Fed as a 'Magical Piggy Bank' - ABC News
Troubled by the Bear Stearns debacle, former Federal Reserve Chairman Alan Greenspan is advocating a new way of dealing with government bailouts of companies whose sudden collapse could wreak havoc on the country's economic and financial stability ...
Read more...DG FastChannel amends agreement to buy Enliven - Forbes
DG FastChannel Inc., a digital media advertising services provider, said Friday it amended its agreement to buy Enliven Marketing Technologies Corp., saying it will now offer 2.9 million shares of its stock in the stock swap deal. In May, the company ...
Read more...