Are U.S. Savings Bonds Still Relevant?

Let's face it. Savings bonds are not as exciting or risky as stocks, but, isnt that the point? While there is no such thing as a no risk investment, odds are, a savings bond is about as risk free as you can get, especially a US savings bond. Odds are, you or someone you know, was probably given one as a child. Unfortunately, the popularity of these investment vehicles has been dwindling as fewer and fewer people are informed about their benefits. There is a reason why many of the most successful stock market investing millionaires also hold a position in US Savings Bonds. There is a good reason for it.

What Exactly Is A US Savings Bond?

Savings bonds are a type of long term investment that used to be rather popular. There are a whole slue of different types of savings bonds out there, but this type of savings bonds are by far the most reliable, being backed by the United States government in quality and guarantee, and that is something that definitely plays on the positive side of the U.S. savings bond. In all actuality, a savings bond of this type is actually a loan to the U.S. government and the bond itself is a guarantee that the 'loan' will be paid back in full after a set period of time during which the bond will mature.

Where Can I Buy A US Savings Bond?

If you are looking for a good savings bond, the best place to get one would probably be from your local bank. Savings bonds can be purchased at a set amount for a set fee. Usually, the fee is half of the amount of the total value of the bond, so they are a fantastic way to save money for something long term without all of the fuss. This is why U.S. savings bonds have been determined to be a type of investment, and one of the most reliable and predictable ones at that. In short, the best place to start looking for a good U.S. savings bond would be your local bank.

How Long Do I Have To Wait Before I Can Cash in My Bond?

Depending on the type of bond you purchased, the maturity date will differ. Knowing your savings bond before you buy is always a smart move. Since you purchase your I Bond at face value and receive interest annually, you can cash in any time after the 12 month period after you initially bought. However, its important to remember that if you cash in your I Bond within the first 5 years, there is a 3 month interest penalty. This is to encourage long term savings. As for the Series EE Bonds, if you hold til maturity, you do not get interest on your investment after that period. So remembering your maturity date is key. You can cash in your Series EE Bonds any time after the first 12 months after you bought them.

Savings bonds are not the type of thing that everyone can get into. Some people want the type of investment that they can get a quick return on, and that is okay--just not good for U.S. savings bonds. However, this is a great way to get your feet wet as far as making investments go, and put some money away for a rainy day-- a rainy day in the next several years, that is.

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	Are U.S. Savings Bonds Still Relevant? By: Christopher W Smith - Posted: 5/9/2009

	Let's face it. Savings bonds are not as exciting or risky as stocks, but, isnt that the point? While there is no such thing as a no risk investment, odds are, a savings bond is about as risk free as you can get, especially a US savings bond. Odds are, you or someone you know, was probably given one as a child. Unfortunately, the popularity of these investment vehicles has been dwindling as fewer and fewer people are informed about their benefits. There is a reason why many of the most successful stock market investing millionaires also hold a position in US Savings Bonds. There is a good reason for it. What Exactly Is A US Savings Bond? Savings bonds are a type of long term investment that used to be rather popular. There are a whole slue of different types of savings bonds out there, but this type of savings bonds are by far the most reliable, being backed by the United States government in quality and guarantee, and that is something that definitely plays on the positive side of the U.S. savings bond. In all actuality, a savings bond of this type is actually a loan to the U.S. government and the bond itself is a guarantee that the 'loan' will be paid back in full after a set period of time during which the bond will mature. Where Can I Buy A US Savings Bond? If you are looking for a good savings bond, the best place to get one would probably be from your local bank. Savings bonds can be purchased at a set amount for a set fee. Usually, the fee is half of the amount of the total value of the bond, so they are a fantastic way to save money for something long term without all of the fuss. This is why U.S. savings bonds have been determined to be a type of investment, and one of the most reliable and predictable ones at that. In short, the best place to start looking for a good U.S. savings bond would be your local bank. How Long Do I Have To Wait Before I Can Cash in My Bond? Depending on the type of bond you purchased, the maturity date will differ. Knowing your savings bond before you buy is always a smart move. Since you purchase your I Bond at face value and receive interest annually, you can cash in any time after the 12 month period after you initially bought. However, its important to remember that if you cash in your I Bond within the first 5 years, there is a 3 month interest penalty. This is to encourage long term savings. As for the Series EE Bonds, if you hold til maturity, you do not get interest on your investment after that period. So remembering your maturity date is key. You can cash in your Series EE Bonds any time after the first 12 months after you bought them. Savings bonds are not the type of thing that everyone can get into. Some people want the type of investment that they can get a quick return on, and that is okay--just not good for U.S. savings bonds. However, this is a great way to get your feet wet as far as making investments go, and put some money away for a rainy day-- a rainy day in the next several years, that is. Visit us for more information on penny stocks, which is better: stocks vs bonds and the mutual fund store. Article Source: http://EzineArticles.com/?expert=Christopher_W_Smith http://EzineArticles.com/?Are-U.S.-Savings-Bonds-Still-Relevant?&id=603957 Other Articles Understanding Convertible Bonds Convertible bonds are a great way to receive a good rate of interest with the possibility of growth. Find out more about these hybred investments. Understanding the Fundamentals of Common Stocks Getting started in buying common stocks for growth can be a scary thought in today´s wacky markets. However, knowing the basics of stocks can be a real boost for the conservative investor. How to Invest Profitably in Gold Gold has been hitting record highs recently so investors have been grabbing gold bars and coins for profit. Is there a better way to buy gold? If so, what is it? Find out here








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Are U.S. Savings Bonds Still Relevant?By: Christopher W Smith - Posted: 5/9/2009

Are U.S. Savings Bonds Still Relevant?
By: Christopher W Smith - Posted: 5/9/2009