U.S. Savings Bonds are a safe, easy way to save money and add a solid addition to your investment portfolio. More than 55 million people are taking advantage of Savings Bonds' competitive interest rates. Whether you select Treasury's I Bond or the Series EE Bond, your money will grow and remain safe in the future.
Here are some reasons to think about saving money with U.S. Savings Bonds.
U.S. Savings Bonds earn interest rates of return competitive with other forms of saving. Interest and Saving Bonds accrue monthly and compound semiannually.
Savings Bonds are backed by the full faith and credit of the United States . Your Savings Bonds are registered, so the Treasury can replace them if they are lost, mutilated or stolen.
With as little as $25 you can start saving money with U.S. Savings Bonds. From there, you can purchase as much as $5,000 worth of Series EE Bonds and $5,000 of I Bonds each year.
Due to changes within the U.S. Dept. of Treasury, the only way to acquire a Savings Bond is through the internet by visiting Treasury Direct. Savings Bonds make great gifts for a new child, grandchild, nieces or nephews.
Savings Bonds are easily redeemable, so if you need your money unexpectedly, it's right there for you. The longer you let your bonds grow, the more you benefit, yet you can redeem them any time after 12 months*. (*If redeemed before five years, there is a 3-month loss of interest.)
The interest earned on Savings Bonds is exempt from state and local income taxes. Federal income taxes are deferred until the bonds reach final maturity or you redeem them, whichever is first. If you qualify, using Savings Bonds to pay for qualified higher education expenses may allow you to exclude your interest earned from federal income taxes as well.